Knowing policy cover of your home makes you pay less

Your home is likely your most valuable asset so make sure you protect it! While insurance agents will help determine the kind of coverage you can buy, it is ultimately your responsibility to know what the policy covers and to make sure you’re not paying too much.

• Review your policies annually. A walk-through of your coverage needs with your agent may identify other coverages (i.e., jewelry, artwork, etc.) that you need, as well as ways to save on premiums such as bundling auto and home insurance coverage together with one provider or requesting higher deductibles to help contain your costs.

• Identify risks you face that are not covered by your homeowners policy. Disasters such as floods and earthquakes need a separate policy to protect your home if tragedy strikes.

•Understand how much coverage you have. Many homeowners believe their insurance policy will replace their damaged or deprojects can add significant value to your home, which may not be covered by your old policy. It is important to make sure that your coverage is sufficient, based on your home’s current replacement cost.

•Do your homework when shopping for price. Get quotes from different carriers. Since rates can vary, make sure you compare coverage on an apples-to-apples basis so you realize when a lower price really represents less coverage. Consider higher deductibles to help contain your costs or ask if discounts are available for installed safety and security devices such as smoke detectors and alarms.

•Research carrier performance. Ask your friends and neighbors for references.Also research the financial strength of carriers through independent third-party sources such as state insurance departments, A.M. Best, Standard & Poor’s, and customer satisfaction ratings at the J.D. Power Consumer Center.