Making a few smart decisions during the buying process can help you save hundreds of dollars annually. Below are some tips to use when researching home insurance policies.

1. Know the Facts

Before you buy, take the time to thoroughly assess the condition of the home. It’s also important to consider the various components of the house, such as its electrical and plumbing systems. Certain materials, such as masonry houses, can provide an insurance break for minimizing fire damage. However, they can also be very costly to defend against earthquake damage.

2. Consider the Geography

Regardless of the materials used, the location of your home can affect the insurance coverage you get. In most cases, homeowners in areas prone to natural disasters such as hurricanes and earthquakes will pay more for their insurance than those in areas with less severe weather.

Your insurance rates may also be affected by the type of neighborhood you live in. For instance, a home in a well-populated area may cost less to insure than one in a sparsely populated area.

3. Know How Much Coverage is Needed

According to a study conducted by Marshall & Swift/Boeckh, over 60% of Americans are not fully covered for their homes’ replacement value. This figure, which is the difference between the market value of a home and the cost of rebuilding it, can be very costly to pay.

Since the cost of materials has increased significantly in the past couple of years, it’s more probable that a home’s replacement value will go beyond its market value. Having the proper insurance coverage can help lower your insurance costs in the long run.

4. Protect Your Assets

Aside from keeping your home insured, also consider adding liability coverage. This can help protect against the financial losses that can result from a claim. If a person gets injured while visiting your home, the insurance company for that person could hold you responsible for the medical costs of the injured individual. Your policy can also cover these expenses.

Most insurance experts suggest that homeowners get $300,000 in liability coverage. This level of coverage is usually enough to cover the legal expenses of a person who accidentally gets injured while visiting your property.

5. Determine Your Comfort Level

Your deductible level can also be selected by the insurance company. It can be lower or higher, depending on how much money you need to save. Having a higher deductible can help lower your monthly insurance costs.

6. Get Comfortable With Preventative Maintenance

Having the proper insurance coverage can help prevent major losses from happening. Having a home warranty can also help lower your insurance costs as it provides coverage for certain repairs and maintenance needs. Just be sure not to take out too many claims for small repairs. You may see an increase in your policy when you renew.

7. Safety Measures Save Money

Security measures can help lower your insurance premiums. Aside from buying a home security system, consider also adding other safety features such as deadbolt locks and fire extinguishers.

8. Keep Current Records

Having the proper records can help you get the most out of your insurance claim. Having these records allows the insurance company to analyze the condition of your home and its contents.

Before a disaster strikes, take inventory of all of your possessions. This can help you determine the value of these items and what’s inside them. Having a record can also help the insurance company determine if a claim should be made.

9. Pick a Good Insurance Company

Doing business with a good insurance company is important. Before buying a policy, check the company’s complaints record and rankings on various factors such as customer satisfaction and claim payouts.

10. Consider “Float” Coverage

Although a standard homeowners policy can cover most of your home and belongings, it may not provide comprehensive coverage for expensive items such as jewelry and coin collections.

If the value of your valuables exceeds your policy’s limits, you may want to consider adding a “personal articles floater” to your policy. This type of coverage provides coverage for items that are appraised or currently have a market value of less than their current purchase price.