For homeowners, their home is more than the roof over their head; it’s often their number one financial investment. Properly insuring this investment (including that roof!) is crucial. While no one wants to suffer the risks of being underinsured, that doesn’t mean you need the most expensive policy either.

Four ways to make sure you’re getting the best policy for your buck:

Re-Evaluate Your Plan

Every few years, ask your insurance company for a updated or customized estimate of your home’s replacement cost. Be sure you purchase an extended-coverage rider, which adds up to 30 percent to your replacement value limit to protect against the surge in the price of materials and labor that can follow a natural disaster. There’s also a law-endorsement rider which covers any extra expense of rebuilding your house to comply with the current local building codes you’ll want to cover as well.

And have you tapped into all your potential discounts? Most insurers offer discounts for deadbolt locks, smoke alarms, and burglar alarms which can cut 5 percent from your premium.

Still don’t like how those numbers are adding up?

Shop Around

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