TIPS ON BUYING HOME INSURANCE

• Shop around; don’t just go with the first quote you receive without doing some comparing. Calling or e-mailing an insurer to request a quote is not a commitment to purchase insurance.

• Without enough coverage, you could face financial disaster if something happens.

• Perform annual checks on your coverage to make sure it’s adequate. This might involve having your house reassessed to determine its replacement value. Also, if you’ve done major renovations or acquired an expensive piece of art or jewelry, you may need to increase coverage. .

• You never want to suffer a loss, but be prepared for one. Using a digital camera, take a photo inventory of your home’s possessions, including electronics (computers, TVs and the like), tools, furniture, jewelry, firearms and anything else of value. Put the pictures on a CD and put it in a safe place. If you have receipts for those items, store them in the same place. Or use free software provided by the Insurance Information Institute (www.iii.org) to store the information online.

• If your search for homeowner’s insurance is coupled with your search for a new home, location can affect your premium. If your new home is within a certain distance of a fire station and a fire hydrant, you can save some money. Also, check crime statistics in your ZIP code; insurers often charge more in high-crime areas.

• If you plan to remodel your home, make sure that the house, the contractor and the subcontractors
have adequate insurance coverage. Don’t wait until the work is completed
to increase coverage; if the addition is destroyed or damaged during the remodeling process, you may be responsible for repair costs. Make sure the general contractor has worker’s compensation to pay for his employees’ on-the-job injuries.

• Be aware that an insurance company can cancel a policy or choose not to renew it. Insurers can only cancel a policy that has been in force more than 60 days when you fail to pay the premium or if they determine you committed fraud or serious misrepresentation on your application. An insurer can decide not to renew a policy when it expires, but it has to give a specific reason.

• If your home is inhabited by nonsmokers and/or senior citizens, the premium may be lower. Fires occur more often in homes where smokers live. and senior citizens are home more often and thus more likely to thwart burglaries or fires.

• Ask insurers which materials are preferred in your area. A brick house in New York would receive a favorable premium for its ability to withstand wind. But it would cost much more to insure the same house in California, where brick is among the least stable in an earthquake.

• If you have a pool, you will most likely need more liability insurance. Pools are considered an “attractive nuisance” (property that is inherently dangerous and particularly enticing to children). You must also comply with local safety standards and building codes, which may include installing a protective fence and pool safety equipment. Consider purchasing an additional umbrella liability policy, which provides more coverage.