Before you buy your home

When you are trying to decide where to live, or which house to purchase, you might want to consider which is a cheaper insurance buy. Some issues to consider are:

• Is there a professional full time fire department in the town?
  
• Is there a hydrant close by?
  
• Has the electrical system recently been updated if you are looking at an older home?
  
• Is there a pool or a trampoline? If so, insurers will want you to take on some of that risk with a higher premium.

Your insurer could help you determine which house would bring the better premium. However, if it's between the home with the patio and his and her closets or the home with the fire hydrant at the bottom of the driveway, this may not be a swaying factor.

Before you buy anything else

Look for the "small print" in the policy under Conditions and Coverages that tells you what is not covered. These exclusions could include damages or liabilities resulting from your enthusiastic pit bull or Doberman. Perhaps a poodle would be just as lovable? You also may be charged extra if your credit rating is low. More and more insurance companies are looking at your credit score to determine your premium. Keep the cards at a minimum and pay your monthly bills to keep your insurance costs down.

Review your policy for replacement value as well as relevance to your current situation. Then shop around for the best deal with the best company, keeping in mind that your current company may reward you for your loyalty with lower rates.