Top things to know

Why insurance costs so much

Value your home properly

Getting the proper coverage

Picking an insurer

Maximizing your savings

A few words about claims

Home Insurance - Value your home properly

Know how much insurance to buy

First, you need to determine the cost of rebuilding your home.

Insure your home for its replacement cost -- that is, the amount it would cost to rebuild it if it were totally destroyed. That means determining the average local building cost in your region, and applying it to your home's size, style, and quality of construction.

Your best resource for this is a builder. For a flat fee, you may be able have a local contractor go through your home and provide an estimate. Try to find someone who builds individual, custom homes that don't benefit from the economies of scale that tract homes offer. If you want the same antique moldings, stone fireplace, and plaster-and-lathe walls as before, make sure the builder takes that into account. Otherwise, the estimate may reflect less costly modern materials.

You could also invite an insurance or real estate agent to your home. An agent who visits your home can eyeball the construction quality, and point out any special features. If you deal with a direct marketer (a company with no local agents), you can better ensure proper coverage by accurately reporting your home's details -- built-ins, antique wood, and glasswork, upscale kitchen appliances, marble bath tile, etc.

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