There are several ways you can save on your homeowners insurance policy. One way is to insure your home for less than it's worth -- that should easily lower your premiums. But that's a dumb way to save, because it defeats the purpose of insurance, which is to protect you against a financial loss.

Here are some better approaches:

  • Buy just as much insurance as you need, and no more. Ask yourself how much it would cost to replace your personal property, rebuild your house, or buy another like it in the same neighborhood.
  • Look into discounts. Some policies offer them for burglar alarms, deadbolt locks, and perhaps some construction features. You can often also get a discount if the same insurer is covering your home and your car.
  • Increase your deductible. If you don't expect to file claims very often, then the higher the deductible, the more you'll save each year on your premiums. (Just make sure you can afford to pay the deductible if and when the need arises.)
  • Comparison shop. Contact agents from a variety of companies and also do a little shopping online.

Learn much more about the not-so-exciting-but-still-critical topic of insurance in our Insurance Center. You may not have thought about some kinds of insurance, such as disability or long-term care insurance, but they're vital for many people. And, of course, properly insuring your property is vital, too. Take a little time to learn more. You may be very happy you did, if some calamity occurs.

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