1. Insure Your Home for Rebuilding Costs
The amount you paid for your home is irrelevant when it comes to the amount of coverage you should have if disaster strikes. You'll want to insure your home for what it will cost to rebuild it in case of a major fire or other catastrophe.

2. Improve your home security
You can usually get discounts of up to 5 percent for smoke detectors, burglar alarms or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that notifies the police, fire or other monitoring stations.

3. Maintain a good credit record
Insurers are increasingly using credit information to price homeowners insurance policies.

4. Your homeowners policy does not cover flood damage. Flood coverage may be purchased separately through independent agents, and is backed by the Federal Government. The rates are set adn regulated by the National Flood Insurance Program ( a division of FEMA).

5. Earthquake is only covered if you buy the extra coverage. Check with your agent to find out the cost to add earthquake coverage to your homeowners policy.

6. Buy your home and uto coverage from the same company and get a discount