The danger here is that insuring your home year after year becomes so routine that you fall prey to three potentially costly errors:
Assuming that all homeowners policies are alike. Actually, policies come in several varieties, and companies' versions of those varieties differ.
Taking it for granted that your insurance company charges about the same premium as others. Prices, in fact, can differ by astonishingly large margins.
Failing to update your coverage periodically. Even if your policy protects against inflation, the value of your home may outpace it; and as you accumulate more possessions, you may find your personal property dangerously underinsured.
To make sure you have the right protection for your property, review the basic aspects of homeowners policies described here:
Upgrade Your Home Insurance
Here's what a typical policy will -- and won't -- cover.
Make sure your insurance will pay if someone is injured on your property.
How to Find the Best Deal
Get several quotes and ask about discounts.
When Disaster Strikes
Follow these tips to ensure your policy pays when you need it.
Other Home-Related Insurance
A standard policy might now cover everything you need. Find out what other types of policies might come in handy.