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Homeowners insurance: Tips for reducing premiums

ORLANDO, Fla. – July 29, 2008 – Property insurance can be expensive, and many homebuyers don’t fully understand what they’re buying or how they can save money. The general key: Pay for adequate coverage without being grossly underinsured.

Homebuyers and owners should consider the following when trying to save costs:

• Determine the limits you want on your homeowners insurance, what value you need to insure, get multiple quotes.

• Consider purchasing your homeowner, auto and umbrella insurance with the same company so a multi-coverage discount will apply.

• Having smoke, burglar alarms and a sprinkler system could mean bigger discounts.

• Get a quote for insurance that would pay to replace your belongings, rather than pay you based on their depreciated value.

• Ask your agent what documentation you need to substantiate a claim, in case of theft or fire. Make sure you videotape all of you personal properties including what is in the drawers and cabinets and send the tape to someone you trust for safekeeping.

• Make sure you carry enough liability coverage to protect you against a lawsuit if someone slips, trips or gets hurt on your property.

“Always read the policy when you receive it and ask your agent to slowly and carefully explain any provisions you don’t understand,” says insurance lawyer Frank N. Darras. “Finally, never buy insurance from a company you don’t recognize.”