There is no standard homeowners insurance policy. Policies vary from insurer to insurer offering various levels of cover.

With homeowners insurance calculator there are several ways of saving money on the insurance of your property which can be invested in the house. It prepares you not to spend money on insurance you don\'t need. For instance if you are not living near a flood ravaged area, you don\'t need flood insurance . Or if you are staying near a fire station you should pay less premium for fire insurance. It is necessary to take stock every one year and ensure that all your major purchases are covered under insurance. Similarly one should eliminate items which don\'t need insurance cover.

While it is important to assess your property\'s value to insure for the right amount, care should be taken not to under-insure any item. This could lead to complications at the time of claims. Over-insuring on the other hand raises the premium.

Home content insurance

This covers individual items such as computer, TV, clothes, jewelery against theft, fire, storm, lightning and other such mishaps. However, no claim is entertained in case of general wear and tear, accidental damage or if your house has been unoccupied for a long period of time.

If your insurance doesn\'t allow you to insure items individually, you could be losing out in the final analysis as this would mean inadequate coverage. Home Insurance calculators help work out the exact amount of cover you actually need.

Rebuilding cost

Insuring the rebuilding cost of your house rather than the market value saves on your premium. Rebuilding your house is less costly than buying a new one as the land on which the house is built remains free from theft, floods or fire.

It is also important to re-evaluate the sum insured every year, especially if major purchases have been made.

Building insurance

Building insurance covers not only the building but also the garage, fences, gates, drives, swimming pools and so on. But these covers have a number of exclusions. For instance, gates and fences are not covered against storm or flood

Discounts

A number of homeowners insurance agencies give homeowners discounts if the house has strong security systems such as alarms, double locks on both doors etc. New homes are often charged smaller premiums than older houses as their electrical, plumbing and heating systems are in better condition. Senior and retired personnel can avail price reductions on their homeowner insurance. As smoking accounts for a very large number of home fires, non-smokers pay lower premium than smokers. However some insurers decrease the premium for those who quit smoking after purchasing their homes .

How much is enough insurance

Ideally you should insure your house for the amount it would take to rebuild it completely in case of such an eventuality. Most homeowners are under-insured or purchase just enough insurance which would satisfy their mortgage lenders .This means the remaining amount will have to come from their pocket.