Home insurance can be purchased from an independent insurance agency that handles policies from several different companies. The agent will ask a number of questions to the insurance purchaser in order to find the best policy.

Among the items considered should be the value of the property and also the value of the contents of the property. These are two different section of the policy and can be purchased separately. The value of the property is roughly two times the value assessed for taxes. The value of the property could be based on replacement costs. In that case the value will be two times the assessed value plus about 40%. For example, assessed value for property tax purposes could be $50,000 x 2 = $100,000. Replacement would be 40% more, or $140,000. This is the minimum amount for the property and should be reevaluated often as property values increase or decline. Most insurance companies will refuse to honor a policy if the property is underinsured by 20%.

Contents valuation is more difficult. Appliances and computers will depreciate in value quickly, but antiques and art objects, coin collections, etc will usually increase. While trying to figure the value of the contents of the property, it is wise to also take pictures of the most valuable items. The pictures should be stored in a safe place away from the property. In case of fire or flood the pictures could be destroyed, which will make obtaining a fair claim payment much more difficult.

There are other places to buy home insurance as well. If you already have vehicle insurance you should check with your insurance provider to see if by purchasing home insurance from them also, you would have a sizeable discount on the premium.

The lending institution that holds the mortgage on the property can also purchase a homeowner’s policy for you. This is usually the most expensive way to obtain insurance. The lending institution may have reciprocal agreements with a certain insurance company, and they have no motivation to look for the best financial arrangement as the premium will be tacked on to the payment anyway. The lending institution usually does require that the property have home insurance, on the building and out buildings, if any. That protects their loan. With their policy, you may find no coverage for your personal possessions at all.

Members of organizations often have the option to purchase various types of insurance at a discount. Usually this is because the insurance company offering the coverage is looking at the policy as part of a group. Typically group policies are less expensive as the insurance company is anticipating several buyers instead of one. Some organizations that offer insurance are AARP (American Assoc. of Retired Persons), Moose, Veteran’s of Foreign Wars, and several others. Usually the organizations favor companies that have a solid reputation. To compare policies and prices, as well as checking out companies, try going online. There is a huge amount of information offered at no charge to you.