If you have a mortgage your lender will require you to have homeowner insurance and could require you to have other insurance also.

Your Lender could require you to pay upfront thru escrow accounts that they will hold and pay your insurance at the correct time of the year.

Most standard homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by:

Fire, Smoke, Theft, Ice, Snow and other damages may be included.

Homeowners insurance also provides coverage for liability claims, medical payments to third parties, and legal costs if a lawsuit is brought against you.

Know your insurance

Read your homeowners insurance policy to find out exactly what is and is not covered. Do this before you purchase your insurance or suffer a loss, so you won't be surprised. Most insurers exclude damages caused by an act of war, nuclear accident, flood, earthquake, and terrorism, although you may be able to purchase special policies or endorsements that will cover these events.

You get what you pay for

Are you willing to pay more to have damaged personal property replaced? If so, consider purchasing replacement cost coverage with your homeowners insurance. When it comes to valuing property, insurers generally use one of two methods. The first, actual cash value, pays you an amount equal to the replacement value of the property, minus depreciation for the years you owned the item. The second, replacement cost, is more expensive, but it pays you the full value of the item today, so that you can replace the old item with a new one.

Sound the alarm

Don't forget to tell your insurer if you have a home security system (e.g., fire, burglar, emergency). Most insurers offer discounts for such safety features. You may also qualify for a lower insurance premium if you live near a fire department or hydrant, own a newer home, own a home built out of fire-resistant materials, or get your auto insurance from the same company.

Save

To save money, consider choosing a deductible of $250, $500, or even $1,000. In the event of a loss (e.g., tree limbs falling on your roof causing roof damage), you'll be required to pay this amount out of your own pocket before your homeowners insurance takes over, but in the meantime, you'll save on premium charges by selecting larger deductibles..

Shop around

Get quotes from several insurance companies when shopping for homeowners insurance. But remember, the lowest price does not always equal the best deal. Compare the coverage each policy offers, and check with your state's department of insurance to make sure that each company you're evaluating has a good reputation in the industry.