Find the Right Insurance Company
Make sure you do your research. Finding the right company to insure your home can be a great way to make sure you are getting the price, while having high coverage limits. Each home owner insurance company rates their policies differently. Find an insurance company who does done a good job keeping the rates low, while providing reasonable liability and property limits.
It's important to make sure the company has a solid financial rating, and isn't wishy-washy on annual renewals. The last thing you want is to get in at a great price, only to have the company raise your rate too much on your first annual renewal.
It's easy to find good prices for home owner insurance online, but a local insurance agent can help you do it for free, in most cases, and make sure you find a company you are happy with.
Balancing Cost and Benefits
The idea is to get the best price possible, but still make sure your home is covered properly in the event of a fire, or other loss. There are some important things to look at when shopping for a home owner insurance policy. Here are some of the main ones:
Dwelling Coverage (coverage for your home, the building). How much coverage do you have? Is it enough to rebuild your home if it was a total loss? What if building costs go up between the time you get your policy and the time you have the total loss? Will the company pay for the extra? Many companies will pay 125% up to 200% of the dwelling coverage limit, if costs have gone up. But, some won't. Make sure you find one that does.
Personal Property (furniture, tv's, beds, appliances etc.) Many companies cover your personal property. How much coverage is your company offering you? Do you need more or less. If they allow you to adjust it, make sure this number is accurate.
Other Structures (detached garages, sheds, etc..) If you don't have any, and you are paying for coverage, make sure this limit is as low as it can be. If you do have detached structures, make sure the limit is enough to protect you in the event of a loss.
Personal Liability (protects you against non-auto and non-business liability issues resulting in bodily injury or property damage to others, in which you are deemed legally obligated to pay) This is an important one. If you get sued, this is probably the benefit that will protect you. Too many people opt for $100,000 in coverage and I think that's much too low. This is an inexpensive benefit. Look into much higher limits and even umbrella coverage.