Here are some tips to maximize the benefits of your homeowners insurance:

Decide How Much Insurance to Purchase
Don’t over-insure, and don’t under-insure! When deciding how much homeowners insurance to buy, you don’t need to factor in the value of your land. Typically, the land itself is not at risk from extreme weather or theft. Rather, it’s the structures that reside on the land and their contents that are in danger. If you include land value in your homeowners coverage, you may pay higher premiums than necessary. Yet, if you underestimate the cost to replace and rebuild, you could end up with insufficient coverage. Be sure to review and update your coverage accordingly.

Your Credit Score Matters
Insurance companies typically don’t disclose that your credit score can be a factor that impacts your premium. The higher the credit score, the lower your premium. Consider providing your insurance company with an updated report each year so any improvements are reflected in your pricing.

Increase Your Deductible When Possible

Consider Using the Same Auto & Home Insurer
Some insurance companies offer discounts for “bundling.” By using the same auto & home insurance provider you may be able to save more on your monthly premiums.  But be sure to shop around, as bundling is not always best for everyone.

Cover Your Personal Property
Basic homeowners insurance covers personal belongings, but only up to a certain dollar amount. Most policies provide a set percentage of the total amount of coverage for contents, so be sure that amount is sufficient for your belongings. Plus, when it comes to extremely valuable items, like your Cartier jewelry collection, a rider may be necessary to provide additional coverage not included with basic homeowners insurance.

Replacement Cost Coverage vs. Actual Cash Value Coverage
When evaluating your insurance options, you’ll need to choose coverage for either replacement cost or actual cash value. Let’s say your laptop is stolen. Replacement cost will generally pay for a new laptop while actual cash value will reimburse you for what the laptop is worth today, which is often depreciated. Although replacement coverage may seem like the better choice, note that it is usually more expensive. So be sure to evaluate the pros and cons.

Evaluate your Liability Protection
Homeowners insurance typically provides liability insurance, which provides coverage in the event someone not living with you is injured on your property. If a visitor falls down the stairs in your home, bodily injury liability coverage may help cover resulting medical bills or legal expenses. You may be able to increase your liability coverage limits by adding a personal umbrella policy.

Homeowners insurance is complex, so do your homework, talk to an expert, and weigh your options.

¹Survey Reveals Significant Insurance Knowledge Gaps by Consumers. Insurance Information Institute. insuranceindustryblog.iii.org/survey-reveals-significant-insurance-knowledge-gaps-by-consumers, June 19, 2024.
²How to save money on your homeowners insurance. Insurance Information Institute. www.iii.org/article/how-to-save-money-on-your-homeowners-insurance, Accessed September 25, 2025.