A fire is a devastating tragedy if it strikes your home. The damage is severe and irreversible. That’s why a fire insurance is something that you should always get the moment you own a home. The insurance may not bring the valuable things that may get destroyed in case a fire erupts in your home but you would at least get compensation that will allow you to rebuild your life.
Insurance companies usually offer fire insurance policies so you wont need to do a lot of research just to get a fire insurance policy for your home. Ask the insurance representative that services your personal insurance policies if they also offer fire insurance. You may get better rates because you’re already an existing client.

There are simple steps to take and simple mistakes to avoid costly insurance cost and to avoid a decrease in insurance claims.

- compare insurance quotes. Make sure you have at least five quotes to compare to get the best insurance that will fit your needs. Having more options increases your chances of getting a cheaper offer.

- If it’s available, get a group insurance policy if you belong to an association, or your employer provides such option. More quotes plus more potential clients will most likely result to a cheaper premium.

- Fire safe homes will have cheaper rates as it will have a lesser probability of an event that will result to an insurance claim.

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Basic homeowners insurance do not cover damages caused by earthquake. A separate earthquake insurance policy may be purchased for this purpose, especially if you live near a fault line. Earthquake insurance costs vary depending on your location, the building materials used (wood can better withstand earthquake than brick), and the “age” of your home.

Californians buy the most earthquake insurance, but there are fault lines all over the US that caused insurers to worry. The New Madrid Fault runs through Arkansas, Kentuky, Missouri and Tennessee. The Insurance Information Institute predicts that the region will experience a 6.0 magnitude earthquake in the next 15 years. The eastern part of US may also encounter a major earthquake in the next 20 years.

Insurance premiums for your home’s protection vary depending on your home’s location, building materials, and other details that you need to know if you want to have an affordable premium with the benefits that you need.

Generally, insurance for homes located in a flood-prone area (a high-risk area) will cost more, or a separate flood insurance may be availed of for better coverage. A house located near a fire department may cost lower than that in a remote area.

Building materials also affects insurance costs, since cost of repair varies for different materials used even if the damage was caused by the same incident.

Discounts are offered by insurance companies for homes with smoke detectors and other kinds of security alarms and devices.

If you sign for additional riders on your insurance, expect to pay more. It is advisable to ask your agent to explain all the details and benefits to make sure you are not purchasing an item you don’t need.

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When it comes to contents insurance, the insurance companies vary in terms of coverage of property and possessions, which is why it is very important to choose which insurance policy and company would work best with you. Some policies would go to as far as changing your locks if your keys are stolen, however, some would pay for lost items but would not go as far as this. Some policies would cover the repair of even broken mirrors or doors in case of burglary, but some would pay only for the damages done on equipment, gadgets and appliances.

There are also policies wherein insurance companies increase the level of contents cover during special holidays (Christmas) or special occasions (weddings) should you have a lot of valuable gifts you will most likely have around the house.

It is always best and advisable to check with your insurance company on the schemes and conditions that you could make the insurance system work best for you. Like in every scenario, it is always better to prevent than to cure.

Along with the buildings insurance that guarantees your house will be under good protection is its partner in the safe-keeping of your home – the contents insurance. The contents insurance, which is self-explanatory, insures the protection of the contents of your home. All your worldly and valuable possessions are the primary reasons why such insurance was created.

The contents insurance covers every valuable thing that you own – including furniture, household goods, food and drink, television sets, video cameras, computers, stereo and sound equipment, gadgets, fitness equipment, clothes, jewelries and the like. The claims for this insurance are expected to be made after a burglary or a fire or any other untoward incident that your contents insurance are enrolled in. The insurance also pays if there are damages or vandalism done to your things, so the claims must be done immediately after the incident has occurred.

Let us look at the other side of the coin. After finding out that insurance companies are able to increase profits by cheating and shortchanging its clients, homeowners are also capable of filing false or bloated claims and get away with it. Fraudulent acts on the part of the homeowner include arson, a fake burglary, staging an accident, submitting a false claim or inflating the amount of claim, or filing a claim that has been paid for by another insurance provider.

Insurance companies have their own in-house investigators, and these companies also partner with government and non-government organizations that focus on prosecution of insurance criminals. Some of these are:

National Insurance Crime Bureau
Insurance Fraud Bureau
Insurance Fraud Investigators Group
Quackwatch http://www.quackwatch.com/
International Association of Insurance Fraud Agencies, Inc.

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The place where you live affects the cost of your contents or buildings insurance. Here are some tips that will help you decide where to live and decrease your home insurance premiums:

Avoid flood risk areas, especially if they are low lying. If your house is at an at-risk area, it would be harder to insure and it will have a higher premium for flood claims. Check the crime rates in the area. A higher crime rate causes a higher premium. Urban homes costs more expensive to insure than rural homes. Find a property where you can park your car in a garage or off-street parking lot. This will help decrease your car insurance premium.

Here are some basic home insurance tips that might help you out in these trying times:

1. Choose a reputable company. Premiums may be higher with bigger companies, but at least they have money to back you up, unlike fly by night outfits who are just out to get their grubby hands on your hard-earn cash.

2. Be detail-oriented. Try to take a good look at the fine print and understand what it says. If not, you might find yourself paying for certain coverages you don’t need. This also makes for less confusion in the long run, when problems arise, as you’re properly informed.

3. Research for the best deal. The best deal doesn’t come easy – you need to take notes and compare payments and benefits for each of the companies you’ve feel are the best to answer your insurance needs.

Haggling may be out of the question during the good days but recession has sent many people negotiating with their providers for better more competitive prices. Insurance may seem as a fix-priced industry but with too may people in between you and the actual firm, haggling must become natural. Agents usually get commissions from sales of policies but these can be negotiated from. The actual policy price is still the same, the agent is the one who sacrifices a little for you in the process.
Not accepting your request for a re-evaluation of your policy, take your business somewhere else. The hard economic times are sure to have many providers eager to take the place of your current one (it may actually get the old provider to offer a lower price as they try to keep you.)