House insurance covers four basic categories:
1. House structure coverage - pays to to repair of rebuild your home when it's damaged or destroyed by fire, smoke, vandalism, burst water pipes, or acts of nature. Damage from earthquakes, hurricanes, and floods are not covered by standard policies, but separate insurance to cover these disasters can be purchased if needed.
2. Personal possessions coverage - pays to replace your personal possessions like clothing, furniture, electronics, appiliances, etc., when they're damaged or destroyed by fire, smoke, vandalism, burst water pipes, or acts of nature.
3. Personal liability coverage - pays for medical bills, property damage expenses, and legal fees if someone hurts himself, or his property is damaged, and you're held liable.
4. Off-premises living coverage - pays for your living expenses while your residence is being repaired or renovated.
Cheap House Insurance
Here are the biggest money-savers when it comes to getting cheap house insurance:
Increase Your Deductible
Your deductible is the amount of money you pay toward a claim before your insurance company will pay. Increasing your deductible to an amount you can afford can save you 15% to 35% on your yearly premium.
Install Safety and Security Devices
Installing safety and security devices such as burglar alarms, fire alarms, smoke detectors, dead-bolt locks, window locks, fire extinguishers, and sprinkler systems can save you up to 20% on your insurance costs.
Consolidate Your Insurance
You can save up to 15% on your insurance premium with many insurance companies if you purchase both you house insurance and your auto insurance through them.
Because insurance premiums can vary by hundreds, even thousands of dollars between insurance companies, comparison shopping is the best way to save money on house insurance. The easiest way to comparison shop is to visit an insurance comparison website to get rates from different insurers.