When talking about house insurance, what does "the crowd" do?

Make mistakes.

Biggest mistake? They get house insurance when they first buy their home, and then never revisit it. Most people don't know what their deductible is, what their policy covers, or even if they're paying too much.

Saving money on house insurance is easier than you think.

If you were going to buy a new flat-screen TV I bet you would check prices at various stores. Right? In fact, you'd probably wonder about someone who didn't comparison shop when they were going to spend upwards of $1,000.

And yet you're probably spending $1,000 EVERY YEAR on house insurance, when you could be paying less.

It's not difficult. Choose three insurance companies and contact them, asking for a quote. Can you find annual premiums that cost less than what you're currently paying? Many people are surprised to discover they can save upwards of $200/year in premiums.

What's a "deductible"? It's the amount of money you pay toward damage to your home before your insurance kicks in.

Here's the dirty secret of home insurance -- if you make a claim, your premiums (the amount you pay for home insurance) will almost surely go up.

What does this mean?

Most people only make claims for substantial damage to their homes.

What is your deductible? Many people have $500 deductibles... and yet they would never make a claim unless the damage exceeded $1,000 to $2,000.

So why not have a deductible for $2,000?

Lowering your deductible lowers your premium.

Are you paying for insurance that reflects your home's current value?

Are you sure?

Yikes. With the real estate market taking a dive, it's a legitimate question to ask.

Contact a local real estate agent to give you a valuation of your property (it's free) or you can try www.zillow.com and input your home address. Either way, make sure you aren't insured for too much!

Insure your home, not the land. "Land" can't be damaged, of course.

What percent of your home's value is land?

Check your property tax bill -- it'll tell you the breakdown of your house versus the land beneath it.

If you live in California, or in an area where properties are only reappraised every so often, then use your property tax bill to get a percentage of value.

Here's how to do it: if your tax bill shows your total assessed value is $200,000 and the breakdown is $150,000 for the house and $50,000 for land, then you know that the land is 25% of the assessed value. If you think your property is now worth $300,000 then 25% of that is land. You should insure your house for $225,000 -- not $300,000.

Do you have one insurer for your car(s) and one for your home?

Insurance companies offer discounts for multiple insurance policies. You might be pleasantly surprised how much you can save if you insure your automobiles and house with the same insurance company.

Insurance companies offer discounts for home insurance when certain criteria are met. Do you qualify?

You have to ask. Insurance companies won't offer them (usually) unless you mention them.

Here are the most common discounts:

1. Upwards of a 5% discount for deadbolt locks, smoke detector and an alarm system. If you already have these items, why not get the discount?
2. Upwards of 15% if you have a water sprinkler system installed, and burglar alarms that automatically call the police. Is it worth it to install these things to get the discount. That's up to the individual homeowner. But if you already have these safeguards, you should get the benefit of the discount on your insurance.
3. Many companies offer discounts for additional reinforcements against wind damage, and for certain types of secure roofs. Ask your agent for details, particularly if you have a new, or newer home, or one that you've remodeled in the last few years.
4. Are you at least 55 years old and/or retired? Then get the senior discount! The reasoning? Retired/older people tend to stay home more, therefore reducing the chance of break-ins and burglaries.

In these belt-tightening times, it makes sense to save money wherever you can. And that definitely includes homeowners insurance!