Before shopping around for a homeowners insurance quote, learn more about the policy:

Homeowner’s insurance policy coverages: actual cash value vs. replacement cost.

We’ll start off with actual cash value and replacement cost, because if this coverage isn’t specified in the quote, homeowners could be in for some serious trauma if there is an insurance claim. Simply put, actual cash value includes depreciating the value of items at the time of the insurance claims assessment. The depreciation calculation varies by the item insured, the insurance company and the individual claims adjuster.

Replacement cost value does not depreciate the value of items insured at the time of the insurance claims assessment.

Replacement Cost is the actual cost to replace an item destroyed or damaged in the event of a covered loss. Replacement Cost increases the cost of the homeowners insurance quote. But if there is ever a need to file an insurance claim, policyholders will be glad they found home insurance with this coverage. Note: Receipts, video and itemized inventories can make the insurance claims process a lot easier and more expeditious process.

What’s included in the homeowner’s insurance quote- building.

Find home insurance that includes Fire, Lightning, Wind and Vandalism coverage. A limited extension of coverage for outbuildings should also be included in the homeowners insurance quote.

What’s included in the home insurance quote and personal property insurance policy.

Contents insurance or personal effects insurance covers most of the items in the home, including furniture. A limited extension of insurance coverage for personal property off-premises (i.e., personal effects in a kid’s dorm room or in the car) is included in the personal property insurance, too.

What’s excluded from the home insurance quote.

PCs and phone systems are generally excluded, although special limits of coverage at an additional premium may be available for these items. Wear and tear, backed-up sewers and earthquakes are almost never covered by a home insurance quote. Clearly, anything fraudulent won’t be covered by personal property insurance, either.

Special limits in the homeowner’s insurance policy.

Glass, jewelry, furs, and most valuable collectibles only receive a minimal pay-out from personal property insurance if damaged by a covered loss and reported in a homeowner’s insurance claim. But, these items can be added to a “rider” (also known as scheduled personal property insurance or a personal property insurance floater) for policyholders who need broader coverage than what’s found in a standard home insurance policy.

Before finding home insurance, review information available at state property insurance associations and from the state department of insurance.

• The state department of insurance provides consumer information about property insurance.
• The Insurance Information Institute provides more information about homeowners insurance for consumers.

To get a better understanding of how to find home insurance, talk to an insurance agent or a licensed agent at an insurance company. They can discuss the ins and outs of the homeowner’s insurance policy, including insurance coverage, limits, and exclusions. Research how to find home insurance policy and company information at state departments of insurance and at consumer-oriented websites.

Across the nation,many homeowners are getting a shock in the mail:they are learning that their homeowners insurance costs are skyrocketing.In some parts of the country,consumers are even begin unexpectedly dropped by insurance providers and forced to find new coverage.

In the United States,the price tag of insuring homes rose 6 percent in 2001,and a similar increase is expected after 2002 is evaluated,says the insurance information institute(III),a non-profit organization supported by the property and casualty insrance business.

III atributes the increases to the mounting number of catastrophes,terroris threats,the high cost of home repairs,and the emergence of mold claims.

Hundreds of smaller disasters stemming from tropical storms.tornados,wildfires,hail,ice and snow are driving costs up.and III points out that the cost of  home repairs is rising by more than 7 percent a year—three times faster than the rate of inflation.

Luckily,there are some options homeowners can us to help keep insurance rates reasonable.IIIand better homes and gadens offer the following saving tips:

Tip #1

Decide what coverage is needed.The standard homeowners policy pays for a lot—but excluded or limits a lot,too.For instance,if your home is near water,flood insurance ma be a good idea.Some mortage lendes will even require it on homes within designated flood zones,at an additional policy.But rates change all the time–and so will your lifestyle and possessions.Even subtle changes can affect a homeowners policy,so it is important to review your policy and the value of your possessions regulary.If you sold that pair of diamnond earnings or other valuable for which you have a floater polic—additional coverage for items not covered by a stadrard homeowners policy—b sure youre not paying for the extra insurance.

Tip # 2

Raise your deductible.The deductible is the amount a homeowner  pays toward a loss before the insure starts to pay.Deductibled on homeowners policies typically start at $250.By increasing the deductible to $500,you could sav up to 12 percent.raise itto $1000,ad you could save up to 24 percent,says III.

Tip #3

Get all your coverage from one insurer.some companies that sell homeowners,auto,and libility coverae will cut 5 percent to 15 percent off your bill at least two policies are purchased through them.

Tip #4

Buy a newly constucted house.Becase anew homes elctrical,HVAC,plumbing systems,and overall structure are likely to be in better shape than those of an older house,insurers may offer a discount of as much as 15 percent below what is normally charged to cover an older home of similar value.Buying the “right” type of construction can also equate to savings.For example,brick homes can earn a discount on the East Coast because theyre less susceptibe to wind and hurricane damage.LIKEWISE,frame homes are better able to Withsand earthquake damage possible in Westen states.

Tip # 5

Disaster-proof your property.Make your home more resistat to damages–save in insurance costs—by adding storm shutters and shatterproof glass,or by reinforcing your roof.Consumers living in an older home should also consider modernizing heating,plumbing,and electrical systems to reduce the risks of water and fire damage.

Tip # 6

Create a “home safe home”.communitiies with neighborhood watch programs are often rewarded with lower lower rates.some insurance companies also offer a discount of at least 5 percent for installing security measures like smoke detectors,burglar alarms,and dead-bolt locks,and many will offer a discount if you install a sprinkler system and a  fire and burglar alarm that ring at police,fire,or other monitoring stations.

Tip # 7

Quitting smoking isnt just good for your health—it is good for homeowners insurance premiums,too.Acoording to better homes and gardens,smoking accounts for more than 24,ooo residential fires a year.Some insurance offer to reduce premiums ifno one in the house smokes.

Tip # 8

Be a loyal customer.Someinsurers will trim their rates if a consumer has been with them for a certain number of years—cometimes up to 10 percent if youve had your policy for more than six years.But dont let loyalty blind you to a better deal elsewhere.Be sure to regulary compare prices agains other companies.

Tip # 9

Inquire about any potential discounts.For example,some insurers offer lower rates to those 55 ad older.

Tip # 10

Consider group coverage.some alumni fraternal,and business organizations may offer group coverage thas cheaper than your individal coverage.