Don't Get Unnecessary Coverage
There's no reason to go overboard when you purchase insurance. You don't want to pay a high premium for features you don't need, so read the policy carefully. You don't want fine arts coverage if all your art is worth less than $500. A court is unlikely to award tenants in an owner-occupied dwelling millions of dollars in a liability lawsuit. So why pay huge insurance premiums every year for excessive coverage?
If a fire destroys your house, an insurance company will only give you as much as it costs to replace your home and possessions, no matter what the limits on the policy are. So take a realistic look at how much your house is worth. Remember to deduct the land value — it will still be there even if the house is gone. Eliminate coverage you don't need if you can, or go talk to another agent.
It doesn't take an actuary to assess your potential risk. Look at your community, your neighborhood, your dwelling. What's the cost of living? How pricey is real estate? Do you live in an area that's quiet and has a low crime rate? Do you live a block away from the fire and police station? This is what insurance companies look at.