How Can I Save Money On Homeowners Insurance? 
The most expensive mistake a homeowner can make is to be underinsured . Regardless of what the premiums were , a single high value loss that exceeds the limits of the policy can make those saving immaterial . Setting adequate limits is absolutely crucial . The person that can help set appropriate limits is a reliable insurance agent . This is a far greater problem than many think . The primary place where this shows up is having inadequate liability limits . Your homeowners policy provides liability coverage for personal injury and property damage law suits . The company pays all costs for a lawsuit up to the limits of the policy . After that the homeowner is facing the lawsuit alone . Most companies do not offer adequate liability limits and most policyholders select limits that are lower than the maximum offered by the company . An umbrella policy is necessary for most homeowners . The second area that is often underinsured is valuable collections . The homeowners policy has internal limits for recovery on certain items . Most homeowner dont know that their inherited sterling silver is woefully underinsured . They dont understand that those guns in the cabinet could be destroyed and they would only get a fraction of their value . The same is true of jewelry , a coin collection , and many other items . This is all detailed inside the policy , but few homeowners ever read their policy . Some people continue to underinsure their structure . While not as common it is an increasing phenomenon . A homeowner will improve the home and never inform the company or agent . In the event of a loss the amount of coverage might not return the home to its updated glory . This coverage is really inexpensive , however a loss can be paralyzing . Some homeowners have multiple homes . The second homes are often in hazardous areas , such as lakefront , beach front and mountain property . The cost of replacing one of these homes can exceed the insured value because of inflated reconstruction costs . If a forest fire sweeps through some summer cottages , there will be a great demand for contractors to do the work and there will also be bidding for materials . It can get ugly . So adequate insurance is the first step , the second step is to focus on the policy itself . Homeowners can often save significant money by increasing the deductibles on their policies . The deductible should be set at the amount of loss that could be absorbed without serious disruption to the family finances . That is often more than the deductible in the policy . Companies traditionally offer discounts if coverages are packaged . Some companies cover a wide range of policies and by bringing those to a single carrier premium savings can often be realized . This is particularly true if you own another residence that you lease to someone else . Often extending liability coverage from you homeowners policy will save you money . Companies often give discounts for loss prevention . The most common is the central station monitored alarm systems . While companies are rarely as generous as the alarm sales people indicate , there are savings to be had by simply providing a certificate of installation . Sometimes the homeowners policy will be modified if substantial rehabilitation is done to the home . You would need to talk to your agent about this . You could also discuss the jewelry insurance if the jewelry is most often located in a safe deposit at the bank . 