Saving Money On Your Homeowners Insurance

JONESBORO (KAIT) All of us are looking for ways to save money.

But cutting corners can sometimes lead to trouble.

If you're thinking of cutting back on your homeowners insurance or, possibly dropping it altogether, you might need to reconsider.

Ben Ford, State Farm insurance agent, "you can save money but you need to make sure that you have the right coverage's in place. "

your home is to great of an investment to skimp on. Make sure your insurance will replace the home at today's prices.

And unlike a car even if your home is paid for you can't just get liability.

Ford, "If you are fortunate to be able to pay off your home and it cost you 2 Hundred Thousand and it burns to the ground. All that money is gone and you have nothing."

To start reducing your insurance costs. First visit with your agent . Then you can look at raising your deductibles that could save you a couple of hundred per year. You also need to make sure you are not over insured. Having more insurance than you really need. But don't get caught being underinsured.

Every couple of years you need to get with your agent and have your home evaluated to find it's replacement cost. Not what it is valued at for tax purposes.

Also do not cancel your policy if you are still paying off your loan. Banks have companies that monitor that information and they will give you insurance, their choice whether you want it or not.

It's called a forceplaced policy and it strictly covers the banks interests. You would get nothing if something happened to your home.

Of course you should shop around for the best insurance deal. But make sure you read the fine print.

If you live in a flood plain you must have flood insurance and again some offers will not have everything you might need.

If a company gives you the same coverage at half the price they probably didn't include earthquake insurance or other coverage's you need to have.

You can save money but be careful your home is probably your biggest investment. Could you rebuild out of your own pocket?

Always visit with your insurance agent before making any decisions. They have the knowledge to help you save and save your home.