A Home Insurance Guide to Help You Save Money

When you purchase home insurance, you should understand the terms of coverage provided by your policy. This is a home insurance guide to six of the questions you should ask an insurance company or agent before you purchase a home insurance policy:

1. Which insurance policy is best for the type of protection I want?

Home insurance in the United States is available in eight categories to provide protection from the minimum level to the most complete. These home insurance policies can be customized to cover everything in relationship to your home as well as all of your possessions. There are home insurance policies for every type of dwelling; mobile homes and condos, as well as insurance for renters.

2. What is NOT protected by the home insurance policy I purchase?

Every home insurance policy has limitations and exclusions, starting with damage due to flooding. "Overflow water damage' is not the same as flooding and homeowners who want to be protected in the event of flooding must purchase a separate policy.

3. Is my home insurance policy written to provide "replacement cost' or "guaranteed replacement cost?'

Homeowners need to be very careful to understand that there is a significant difference in these two terms. Having home insurance with a guaranteed replacement cost for your items is much better than just replacement cost.

4. Are there any limits on my expensive possessions such as furs, jewelry or computer equipment?

Insurance companies classify personal property in different categories, for expensive items to be fully protected additional coverage may need to be purchased.

5. What is the minimum and maximum amount of deductible I can carry and how much money will I save by choosing a higher deductible?

The amount of deductible for home insurance is usually between $100 and $2,000. By carrying a deductible on your home insurance you can lower your premiums. Another reason to carry a higher deductible is to be able to handle minor repairs to your home without filing a claim.

6. What are the features that will give me a discounted rate on my home insurance?

Most home insurance companies provide discounts to homeowners who install additional safety features such as smoke detectors, fire extinguishers, deadbolt door locks and burglar alarms. One way to find out the entire list of things you can do to receive a discounted rate is to check the company's home insurance guide for improving safety.