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When real estate prices go down, some homeowners may think they can reduce the amount of insurance on their home. But insurance is designed to cover the cost of rebuilding, not the sales price of the home. Make sure that you have enough coverage to completely rebuild your home and replace your belongings. Better yet raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your premium.

Don’t select an insurance company by price alone. It’s important to choose a company with competitive prices. But be sure the insurer you choose is financially sound and provides good customer service. Ask friends and family members about their experiences with insurers. Select an insurance company that will respond to your needs and handle claims fairly and efficiently.

Renters, don’t neglect purchasing renters insurance. A renters insurance policy covers your possessions and additional living expenses if you must move out due to an insured disaster, such as a fire. It also provides liability protection in the event someone is injured in your home and decides to sue. Look into multi-policy discounts. Buying several policies with the same insurer can often save you money.