IMPORTANT HOME INSPECTION TIPS

1. Order a home inspection soon after your purchase offer has been accepted. Real estate contracts typically allow a limited number of days to complete a home inspection (and then to request repairs, if applicable). 

2. Reputation is important. Choose a home inspector who is known for competence and professionalism — a referral from your lender or realtor is a good place to start. Make sure the inspector you select has access to ongoing technical support and offers you post-inspection advice, if needed.

3. If the home has been vacant, ask the seller to have all utilities turned on during the home inspection. Failure to do so may require a second trip to the home and may involve additional fees. To properly evaluate the home, an inspector must be able to operate all systems.

 4. If your inspector recommends a further evaluation, have a specialist in that area conduct a more extensive examination prior to closing.

5. Be sure you understand all conditions identified in the inspection report and reported defects/and or areas of concern have been resolved to your satisfaction before closing. 6. Your inspector can arrange for other services such as radon screening, termite inspection, water analyses, lead-based paint testing and septic/well system evaluation. Take advantage of your inspector’s contacts when necessary to further minimize unexpected after-sale problems or hazards in your new home.

More information at: http://www.southernhomeservices.biz/index4.htm

Many of us obtain our homeowners insurance when we purchase our home. After this initial purchase, we do not give this insurance another thought. It is not until the roof is damaged during a violent thunderstorm, a major appliance fails and floods our basement, or the neighbor's kid slips and fractures their wrist in our living room that we dust off the policy and ask ourselves, "Am I covered for this?" Don't wait until damage or an accident happens to discover what your insurance policy covers. Instead, you should have a good idea of what you are covered for and what is not included. Every year you should assess if your coverage should increase or if there is any optional coverage you may want to add. The purpose of this article is to point out some general characteristics of homeowners insurance and help in determining if you have the right coverage. Obviously this cannot substitute for a consultation with your insurance provider, but it will give you a better idea of what questions to ask. Image of home, crutches and turning road sign.

There are five popular topics concerning homeowners insurance that we will discuss below: types of damage covered, determining replacement cost, determining personal property value, understanding liability coverage, and ways to save money on your policy.

Homeowner insurance policies typically cover damages such as: fire and smoke damage, storm damage (i.e. lightening, wind, hail, ice and snow), water damage (other than flooding as this is separate), explosion, vandalism, theft (some companies are now offering an identity theft coverage option as well), civil unrest, and damage by aircraft and vehicles. You should discuss with your insurance provider any additional hazards you may face in your location such as earthquakes or floods. There may also be hazards you are not immediately aware of that could effect your insurance cost such as your neighborhood crime rate or if you own a Flood damage is not covered by homeowner insurance. The National Flood Insurance Program is a partnership between FEMA and isnurance companies that offers coverage. Click here for more.pet that is considered to be a high liability risk (i.e. certain breeds of dogs). Depending on the probability of need, you may be required to get additional coverage for these hazards by your insurance carrier and/or mortgage lender. To find out about special hazards in your area, talk with your insurance provider or contact your state insurance commissioner. If you run a home business, you will need to get separate insurance to cover business items such as computers and liability, i.e. if you run a daycare, your standard homeowners will not cover any accidents. Other items that are not covered by your homeowners insurance but may be covered by additional or alternate policies are: tenants, multiple family dwellings, land, theft by those covered in your insurance policy (i.e. recently separated spouses), and cars. Take a look at your policy and review your coverage. Consider how you use your home or where your home is located. Do you need additional or special coverage? This is a question you should review every year.

When choosing a policy, it is important that you consider the replacement cost of your home. The replacement cost is the amount it would take to replace your home. Replacement cost is not the same as the market value of your home as the market value includes the property it stands on and the current housing market. Because of this, it may not be equal to your outstanding mortgage. You can get estimates for replacement cost from appraisers, your local builder/craftsmen association or your insurance agent. Once you have determined how much your home replacement cost should be, you should review it and make any needed adjustments every Condos usually have a Master Policy that covers liability and property for common grounds. Individual policies then supplement personal property, liability and immediate structure.year. Most insurance companies will include an increase of coverage every year to match inflation. However, other items may also require you to adjust your replacement cost. Major remodels to your kitchen or bathroom or room additions can drastically effect the replacement cost of your home. If you use special materials or there is a housing boom making building materials scarce in your area, these too may affect your replacement cost. Another item that may effect your replacement cost is the change in building codes since when the house was built. Even with partial damage, it may be necessary to take the whole area/structure down to bring it up to code. If you own an older home, you should definitely discuss this with your agent. You may also get an extended replacement policy that will help you if your replacement coverage is below what you need. However, it is more economical if you take the time to review your policy and change your replacement cost coverage each year. Finally, keep in mind your policy should also include coverage for living expenses while the home is rebuilt or repaired. With the structure insured for major repairs, you can now consider your possessions.

Determining the personal property value depends on how much time the homeowner wants to invest in itemizing their property. Traditionally, most homeowners are covered at 50% of their home's value to cover personal property. Some pay a bit extra and get 75% of the homes value. Replacement costs like this cover like items, not necessarily the same make and model. You can also make an itemized actual cash value list that will cover items' actual cost minus depreciation. Many opt for percentage replacement coverage and then add a "floater" that will cover individual inventoried items. Major items should be inventoried with make, model, original cost, and documentation by picture or video. Items like jewelry and antiques should also have an appraisal. The documentation of these items should be kept in a secure location like a safe deposit box or a fireproof safe. Even if you opt for the general 50% coverage, you should have a list of your most valued possessions in case theft as this may help in tracking the items down (see more in our Home Security article).

Liability coverage protects you, your family, house guests and pets if they should accidentally hurt someone on your property or hurt someone or damage property elsewhere. On average, liability insurance usually covers up to $100,000 per incident. However, with lawyer and medical costs high these days, many homeowners also add an umbrella which allows for greater coverage at reasonable rates. Although most think of medical coverage as part of their liability coverage, it is actually categorized separate from liability because it pays for minor injuries that do not need to prove fault or negligence to be covered. An example would be someone twisting their ankle at your home. Liability is an important coverage that you will want to discuss with your agent.

Finally, there are a few things you may do to ease the cost of homeowners insurance. One way to lower your overall insurance cost is if you know you can take a higher deductible. If you can pay $500-1000 instead of $300 for each instance, this will lower your premium. Some decide to do this as the probability is that they will not claim or use the insurance very often. In addition to this, you may also pay your premium in larger and fewer payments. Another method to lower costs is to itemize your insurance to only the hazards you think most probable to happen. However, this option may not be available if you still owe a mortgage as the mortgage company may want more inclusive coverage. Also, you may check and see if there are any improvements you make to the home that may reduce your premium. Installing a home security system for example. Finally, combining policies with one carrier will also help you get lower premiums. If you combine your home, auto and life insurance policies, many companies will give you a preferred rate. Talk with your agent for further ways you may able to save money but maintain sound coverage on your home.

Conclusion
     There are a lot of options for your homeowner's insurance policy.  When setting up a policy, shop around and talk to different insurance companies to find one that works well with you.  Find out if they have a good reputation with the state insurance commissioner and consumer reports.  Find one that is fast, offers great service and handles claims fairly (you don't want to end up with a company that argues every claim).  Hopefully this overview has helped equip you with a better idea of the coverage you may need for your home.  You should have a better idea what to look for in a policy when you contact an agent to set up your homeowner's insurance.

More Resources

Household Checklist

There are a number of checklists available online; many are available from individual insurance providers. We found the following booklet from the University of Illinois to be the most comprehensive. www.ag.uiuc.edu/%7Evista/abstracts/ahouseinv.html

Household Papers/Records:
Taken from our earlier article about Home Security, here again is a checklist of important papers you should safeguard and how long you should keep them:
- Keep in Safe Deposit Box/Fireproof Safe: Birth certificates, marriage certificates, divorce legal papers, adoption papers, citizenship records, and other documents that are government or court related. A copy of a will, although your attorney will keep the original. Investment and business papers, government bonds, deeds, titles and copyrights to name a few more. General rule is, "Put it in if you can't replace it or if it would be costly or troublesome to replace."
- Taxes: IRS can audit up to 6 years back. However, you can get rid of pay stubs if you have your W2. Cancelled checks you will want to keep if they are related to anything you claimed on your tax return.
- Medical Bills: Keep at least 3 years.
- Household Inventory: You should have a comprehensive list for each room and what of importance is in there. This will help you claim losses in event of burglary or fire. The details of this list should be shared with your insurance carrier to make sure of coverage. It is recommended that you review this list once every 6 months.
- Deposit, ATM, Credit Card and Debit Card Receipts: Save them until the transaction appears on your statement and you've verified that the information is accurate. Then they may be shredded.
- Credit Card Statements: If there are not purchases related to taxes you may shred them once every year. However, if you have larger purchases on the card you may want to keep hold of these older statements. Special Note: Credit Card Agreements should be kept as long as the card is active!
- Loan Agreements: Keep as long as the loan is active.
- Documentation of Stocks, Bonds nd Other Investments: Keep while you own the investment and then 7 years after that.

Useful Links

National Association of Insurance Commissioners
www.naic.org FEMA: Homeowners and Renters www.fema.gov/individual/home.shtm

For some of us, there comes a point in our lives when we look around our dwelling and realize the college student look has to go. Others of us look around and see an eclectic mix of sad and worn hand-me-down furniture. And a few of us are just, well, bored with the décor we have had for the last five years.

To redecorate your home, you don't need to spend a whole lot of cash. Granted, a major remodel, such as a kitchen or bathroom, will be a whole different story (and an article to come later this year). However, any space in your home can be given a fresh look with easy do-it-yourself projects at minimal cost.

Décor Ideas for Any Room:

Use What Ya Got - Many times we become so accustomed to seeing things in the same place we don't consider their potential in another area or room of the home. Rearranging furniture and décor can give any space a new look.

• Consider how you use the space first, do you find some rooms are used all the time and others hardly at all? Frequently used spaces can easily become cluttered. Perhaps there is something you can move to a less used space to bring new purpose to that area. Convert a scarcely used nook to a game table or move a small bookshelf and add a lamp next to that comfy chair no one ever seems to sit in. Think outside the "box" of your previous layout.
• Similar to the point above, consider some of your larger pieces of furniture. Moving a piece out of the room into another may help free up space in one and redefine another.
• What is the flow of your rooms? Do pathways from one doorway to the next make sense? Perhaps everyone seems to be ducking in front of the couch to get by the TV when there is room to move the couch away from the wall. Contrary to popular belief, the couch does not need to go against the wall!
• Take established pieces and reinvent them. No, the modular sofa does not have to be one formal island in the center of the room. Break it up and add lights, or end tables to help recharge the room.
• Besides furniture, consider what you have hanging on the wall as well. Do you have old paintings that no longer appeal to you or the space? Do you have new photos that you can't seem to find a place for? If you are rearranging furniture, take pictures off the wall first, you don't want to be boxed in with idea to leave wall space for this or that. Afterwards, look at the new blank walls and consider the possibilities. If you are not rearranging furniture, still take the pictures down. Leave them down for a couple days and come back to look at the room as fresh as possible - what do you really miss being up there, what would you like to add, or perhaps, do you prefer a more blank, uncluttered wall?

Color Me New - A splash of paint can go a long way! Repainting walls can be a lot of fun and the best part is that if you don't like it you can just paint over it! Of course today there are great programs at the do-it-yourself stores that help you customize colors and paint styles before you begin. And painting doesn't have to stop at the walls!

• Repainting the ceiling can help to brighten a room considerably.
• If you have old painted trim, you may want to consider splashing on a fresh coat of paint or changing the color altogether.
• Painting old furniture can reinvent it and is something kids can get involved with if redecorating their own room.
• There are paint sets out there to help repaint anything with a surface. You can give any end table, lamp or bookshelf a new antiqued look. For example, we had some white metal dining room chandeliers that clashed with our house, it was easy to dismantle them and paint them with a rusted look and this saved us buying chandeliers that would otherwise have cost $200 a piece! I admit, we did this with the thought that we would replace them "down the road," but since their makeover they have stopped being an eyesore and we have even received compliments on them - most didn't realize they were painted until we said something!

It's ALIVE! - Plants can do wonders for the home. Some believe that you should have a plant in every room. Large potted plants can help give life to blank corners or help set up the outline of a nice path throughout a room. Smaller potted plants can add color to the window or shelf. It must be admitted that although nice idea, not all of us have a green thumb and lack of light may doom some of our green friends from the beginning. Many of the silk plants these days look very real, however, they are not for everyone. Another alternative is fresh cut flowers. Get enough small vases and one bunch can be used throughout the home and greet you everywhere from the bedroom to the kitchen.

Instant Relatives - "Instant relatives" is a phrase my friend uses for the photos of people in the new frames you buy. If you bought a frame 6 months to a year ago and still have those "instant relatives" you don't know staring at you, then you have just found one of the easiest home décor projects! If you don’t have new frames, they are an inexpensive way to help any room. And remember, all the frames on one wall don't always have to match; sometimes the mix match look of your décor is what can give it personality! Once you have some frames you like, fill them with memories or art you enjoy having around you. Today it is easy to enlarge photographs and add effects to them. Enlarge one of your favorite photos of Scotland or collage your last family vacation. Fill the frames with photos of family, friends, vacation scenery, art prints, artwork by the kids, favorite postcards or cards, the list can be endless if you let your imagination run with it; make it fun!

Facelift Under $20 - Many times just adding a few small pieces can help a space. At many department stores you can find: candles, sconces, mirrors, frames, framed art, plaque art, photo holders, statues, ornate boxes, pillows, table runners, etc. Any of these smaller items can be combined to add a unique design to your space. Also, many department stores package themed art (southwest, modern, Victorian, African, etc.) to help you create the design for the space you want. These series often go on sale as one design set makes way for another, leaving you a chance to find some great decorations with a little planning and patience.

Oh Just Hang It! - The softness of fabric in a room can make a major mood change. Drapes are one of the easiest ways to change the look of a space. You can get drapes relatively cheap these days. I have both purchased and made my own drapes and consider it a draw. I was able to get better fabric quality when making my own, but the time and headache (I'm not a sewing expert) did cancel out some of the ease of just buying them. Others have been smarter than me and buy a fabric they want, simply seem the edges and then hang them freely over the curtain rods. Another consideration would be bamboo or roman blinds, some find these a more colorful and cheaper alternative to standard blinds.

Camouflage the Old - Covering up what you already have can be a great alternative to buying new furniture. Covers for sofas, tables and chairs can help you bring new colors and patterns into your room. Again, you can make these items yourself or purchase them in the store. Unless you a proficient with the sewing machine, it may be easier to purchase some of these items. Sometimes even cushions and pillows can help cover up worn spots or add color to a drab space. While we are covering things up, you may also consider to use rugs to cover up and change the pattern/color or old floors. Especially for older hard wood floors or pergo, this can be a great way to spiff up your room.

The Finer Details - Another detail that can be changed on a small scale but effect a room on a large scale is your hardware and fixtures. Changing the hardware on cabinets can reinvent your kitchen or bathroom. You can also replace fixtures such as light casings, towel holders, toiletry and soap holders, etc. Changing these items can help change the room from modern to antique or vice versa (just for example). Many department stores sell fixture sets that can be a quick and easy facelift to any bathroom.

Just Say No to Clutter - Finally, one of the most effective ways to redecorate your home is to get rid of clutter. This doesn't just mean picking up bits of paper. This can also mean getting items to help you organize. Many stores offer beautiful baskets, tins or other containers that can be used to organize your madness. Adding a bit of shelving, a chest, a large basket or an ottoman that opens up for storage are just a few ways you can change the look of the room and give yourself storage space. Changing a room from cluttered to organized can have a dramatic effect on the décor and overall feel of the space.

Conclusion

Redecorating your home on a low budget can include inventive use of what you already have to inexpensive updates to your room such as paints or wall hangings. Obviously we have only touched a few methods here. Hopefully this list helps you think outside the box and consider other ways you may utilize the spaces in your home. Still want to see more? Check out a few of our suggested links on the right. Happy decorating!

Further Reading

About.com

If you long for a beautiful home, you have come to the right place! Learn about home decorating, get tips for projects, find directions for how-to's, and advice from About Guide to Interior Decorating, Coral Nafie. Take a look!

Behr.com

Get interior design ideas from dozens of articles and hundreds of images.

BHG.com

Join us for truly inspiring decorating ideas, easy projects, step-by-step how-tos, practical home improvement tips, remodeling ideas, and home plans -- from Better Homes and Gardens family of magazines.

CountryLiving.com

Home decorating ideas, craft projects, home accents, renovation tips and more country style from Country Living magazine.

Do-It-Yourself.com

Decorating and painting is a key ingredient to a beautiful home. Before you begin decorating or re-decorating your home, learn more about painting techniques and preparation, selecting paint colors and finishes, decorating and designing trends, and interior décor, accents and furnishings. Home decorating has never been easier!

HGTV.com

Learn more about decorating and interior design ideas, projects and how-to from videos on Home & Garden Television.

KatieBrownHomeWorkshop.com

This is the official website for Katie Brown and the Katie Brown Workshop. It is the place to shop and buy Katie Brown books and provides information regarding lifestyle and domestic guru, Katie Brown and answers any questions you have about Katie Brown’s books, products, columns, Podcasts, or her televisions shows including the Katie Brown Workshop on Public Television.

MarthaStewart.com

Different ideas from her show and magazines.

RealSimple.com

Magazine and TV show about simplifying your life. Includes home solutions, meals, special features.

Welcome back to Rocky’s Corner! Last month we started Part 1 of an 8 part series of Preventative Maintenance Tips for your Home. Series 1 dealt with maintenance checks that are recommended every month. Series 2 will combine a periodic checklist for every 2 months and a periodic checklist for every 3 months.

Every 2 Months
If you have a pressure type oil burner inspect and clean Range Hood Fan: Clean grease filter. This may be done more often than every 2 months depending upon the amount of cooking and or fry foods. If you find that the filter is corroded, you may need to consider replacing it.

Steam Heating System:
Test relief valve and replace if necessary, check pressure and drain expansion tank if necessary. Wall Furnace: Clean grills. Clean or replace filter.

Every 3 Months

Faucets:
Clean aerators-unscrew, disassemble and wash out debris. Fix leaky faucets quickly; a leak wastes up to 20 gallons of water a day and can ruin a faucet set. Consider replacing older faucets with new ones with washer less valve cartridges instead of rubber washers.

Dishwasher:
Professionally have the strainer, spray arm and air gap cleaned.
Pest Control: Consider hiring a pest control service to protect your home and family from insects, vermin and termites damage to your property.

Hot Water Heater:
Do not set any combustibles near water heater. Drain a quart of water from the tank four times a year to keep your water heater in peak condition. If you suspect a leak, you may have rusting through the bottom of the storage tank. Consult a professional.

Floor Drain Strainer:
Clean out debris and scrub strainer.

Tub Drain Assembly:
Clean out debris; inspect rubber seal and replace if necessary.

Join me next month for Part 3 of our series on Preventive Maintenance Tips for your Home. Visit us at www.freminshomeimprovement.com

Lately, when we turn on the news, we hear about a troubled economy and an unstable job market. The constant barrage of bad news has encouraged most of us to cut spending wherever possible. Perhaps a household will cancel cable TV for a year, limit their cell phone plans, reduce the number of times they eat out as a family, or tackle another cost reducing option. As many different "belt-tightening" measures are taken, everyone should be careful they don't cut the essential items. One annoying essential is the cost we pay for insurance - there is no guarantee we will need it in the near future (in fact, we hope to need it as little as possible), however, if an accident does happen and we don't have coverage, the costs could send us into bankruptcy. Understandably, if a bread-winner of the household loses their job, it is tempting to cut costs where we cannot see the immediate need. This said, it is far better to reduce coverage than to go with no coverage at all.

Before we discuss insurance any further, let us get this down now - it is not worth the risk to eliminate insurance coverage completely.

• For homeowners insurance, your mortgage lender will require that your home is at least minimally insured. However, it is possible to let your insurance coverage lapse if you don't pay your bills or mortgage. A few months lapse does not mean you lose your insurance right away. However, letting it go longer than a couple of months will leave your home uninsured. When you then try to reenroll your coverage, the insurance company may charge you as much as 2 or 3 times more depending on how long you went uninsured - you have become a higher risk client. If you do not reenroll and let your insurance continue to lapse, your lender can take action to protect their investment. A lender may enroll the house in an insurance policy which they then add to your loan payment. However, they will be the party to receive funds if the home is damaged (i.e. fire). Essentially, you will be forced to pay for an insurance of their choosing (maybe at a higher rate) but you will not receive the benefits of the original coverage under your name.
• Basic automotive insurance is required by law in most states. If you are driving uninsured, you could be faced with a lot of out-of-pocket expenses as well as legal fines if you are ever in an accident. Again, if you drop insurance coverage and reenroll later, the insurance company may charge you as much as 2 or 3 times more depending on how long you went uninsured as you are a higher risk client. For a chart detailing the amount of coverage required in your state, click here to visit Insure.com. Before you cut your auto insurance to the bare minimum listed, consider some of our insurance shopping tips listed below that may help you lower your costs.
• Finally, what about health insurance? It is estimated that this year the number of Americans without health insurance is as high as 52 million. Most Americans rely on their employers to help cover some of their health insurance cost. However, as premiums rise for companies, they are forced to increase the contributions of their employees. So in today's economy, both those with jobs and those who have lost their jobs are struggling to keep affordable health insurance. Everyone should have health insurance to offset the astronomical cost of emergency health care. Those without insurance may find that the ambulance ride alone may break the bank and leave them with more debt than they can possibly afford to repay. Below we have provided some strategies for obtaining cheaper health insurance.

The above said, let us see how you can cut some of your insurance rates!

Cutting your insurance costs does not mean you should go without coverage. Instead, be a savvy consumer and do your research and shop around. Recently an insurance company ran an ad where they asked consumers how long they shopped for their car and received answers from a week to even a couple of months. When they then asked how long they shopped for insurance, there was a pause and the usual answer of, "Er, uh, less than an hour." This commercial proved a good point about how many people approach shopping for insurance with less care than the big ticket items to be covered. Here are some shopping tips to help you find the best price and coverage.

Strategies for obtaining discounts on home, automotive, and health insurance: 

SHOP before you DROP your money! As the commercial we used as an example above, and as we keep mentioning over and over, nothing can beat comparison shopping. Use the web to your advantage as there are so many quote and comparison sites available. If you aren't comfortable with the web, do some calling around to your local agents. It is worth your time and money! 

Considering the online insurance option? You may give up on some individualized care, but the cost savings may be worth it. Consider these PROS and CONS before you buy online insurance coverage:

The PROS - There are many benefits for utilizing online insurance:

• Easy Comparison Shopping: Using insurance websites, you can compare coverage and prices on almost any type of insurance. You can also browse the individual insurance carrier websites once you have narrowed your search. Almost all companies now have libraries and tools for you to learn more about their services online.
• Your Time Is Money: Shopping for insurance online can be done at any time of day. It is hard to get time away from your daily schedule to sit down and comparison shop with insurance brokers, or indeed, individual agents.
• Low Pressure: Let's face it, many people find it easier to stand firm without the person-to-person contact. Users feel they can be more savvy and better informed when every option is at their fingertips rather than relying on an agent's account.
• Save Money: Due to the time needed to comparison shop, the pressure to stay loyal to one company, and the uncertainty of other companies, some may lose money by staying blindly loyal to their insurance carrier. The online market allows for easy comparison shopping, less pressure, and research tools to learn more about other companies. By becoming well informed, you can work out a better rate with your current provider or move to a new provider who offers better coverage for your dollar.

The CONS - Be aware of these complications when purchasing insurance online:

• Understanding Coverage Options: Without an agent to explain 'insurance speak,' you may not know all the coverage you may need. This is especially the case for those getting insurance for the first time. However, if you have discussed options with an agent before and have a generally good idea of the type of coverage you will need, this may be something that is manageable with a little extra research.
• Is that quote really a deal: All quotes may not be equal. Take care to examine all the coverage included with quotes. The online quotes may help you narrow your search, but should not be taken at face value because not all companies offer the same 'comprehensive' coverage.
• Buying Insurance Coverage In Your State: Not all states allow you to purchase insurance online. Some allow you to get quotes but still require you to meet with an agent before signing any contracts. Also, because the Internet clouds locality, you will need to make sure the insurance carrier is licensed in your state.
• Individual Customer Care: Do you really want to push 1, then 2, then 4 to talk to someone about your insurance coverage? Working with a local agent still offers the advantages of individualized customer service. They will also have a better knowledge of the coverage their carrier provides and can help you understand all of your options. They may also be aware of more discounts available to you that you may not know to ask for online. In this way they can offer better individualized care.

For more information about purchasing insurance online, read our article 'Online Insurance: Is Online Insurance Right for You?'

• Look for and Ask about Discounts: All insurance companies offer discounts, however, not all of them will offer a discount if you don't ask. Since not all insurance companies are upfront with all the discounts they offer, it is best to shop with this at the top of your list of items to ask about. Discounts are available for all types of coverage and include everything from being a long-time client to paying your policy in full (rather than monthly). Homeowners can get discounts by making certain upgrades to their home that make the home more secure and/or energy efficient. Automotive insurance often has the most selection of discounts ranging from a good driving record, a short daily commute, or even a high grade point average (for those student drivers in the house). Health insurers will give discounts for clients in good health - if you lead a healthy lifestyle with regular exercise, no smoking or drinking, you may find completing a health survey will save you money on your premium.
• Raise your Deductibles: By raising the amount you pay out-of-pocket in the case of an emergency, you can lower your rates substantially. Higher deductibles will mean that you may have to pay as much as $1000 or more out-of-pocket per event. However, it does provide a safer gamble compared to no insurance at all. For health care you may consider a high deductable plan for "emergency" or "catastrophic" insurance. These plans will only cover a major accident but, if you are in good health and don't need a lot of medications, this plan can help offset high rates. However, keep in mind that you will have to pay over $1000 out-of-pocket and these plans will not cover routine doctor visits. Instead, combine this insurance with a Health Savings Account for the best rounded coverage.

MORE Strategies for obtaining discounts on home and automotive insurance: Flood damage is not covered by homeowner insurance. The National Flood Insurance Program is a partnership between FEMA and isnurance companies that offers coverage. 

• Bundle to Save: Using one insurance provider to cover your home and vehicle can help save you money as most insurance companies provide a discount to get your business. This will save you money if you check with your current provider, but don't be shy, take advantage of online comparison sites or do some calling around. You may be surprised at the differences!
• Review your Policy: Make certain you review your policy at least once a year. There may be adjustments you can make in coverage. For example, as your car gets older and subsequently worth less than when you first bought it, you may find you need less coverage. For your home, you may find you have sold high insured items from your household or take inventory and realize you don't need to cover that old computer or entertainment center for as much as you did before. Examining your Personal Property Value may lead to areas you can logically cut coverage.

For more information about homeowners' insurance, read our article 'Understanding Homeowners Insurance.'

Insurance Company Rankings

• AM Best Company - Insurance Reports http://www.ambest.com/homepage.asp
• Consumer Reports (requires membership for ratings) http://www.consumerreports.org/cro/money/insurance/index.htm Standard & Poor's Ratings http://www2.standardandpoors.com/
• US News & World Report - Top Health Insurance Companies http://health.usnews.com/sections/health/health-plans/index.html

Online Insurance Comparison Sites

• Insurance.com www.insurance.com
• Quicken http://www.quicken.com
• InsWeb www.insweb.com Insure.com www.insure.com
• eHealthInsurance www.ehealthinsurance.com

Big events and holidays can often mean big spending. A little pre-planning can help to ease and avoid financial pain. To the left are some worksheets that may be used when planning holiday or big event spending. In the meantime, here are some other tips for not overspending:

Set a Limit - Before any spending spree begins, make sure you know your limit. Set your cap a bit below as last minute expenses may arise. Did you account for mailing the gift? Gift wrap? The unexpected can creep on you before you know it! Also, take a look at how much you have spent in the past. Was it too much? What expenses surprised you? Asking questions like these will help you plan for the holidays and events to come.

Make a Gift List - Instead of hoping for something to catch your eye, keep a list of gift ideas. This way you will know what you are looking for and be able to better preplan the budget. This will also prevent buyers remorse - sometimes that gift that seemed like a great idea when you were in the store may not be so great when you sit down to gift wrap it.

Pay Cash - Credit cards are easy to use but not all of us are good at paying them off as soon as the bill comes. Taking cash helps you stick to your budget. Another alternative is the prepaid credit cards that you load with a limited amount in advance. Many also find these pre-paid credit cards a nice alternative to use for online purchases for extra credit protection.

Shop Early or Late - Depending on how far in advance you like, plan to shop either in advance of the holiday season or post-holiday season with the next year in mind. This will allow you to stick to a budget and not get caught up in last minute buys. It will also relieve a lot of the stress that comes with shopping during the busiest shopping days of the year!

Allow Time for Shipped Gifts - Plan ahead if you are shipping gifts to friends and relatives far away. Waiting until the last minute will mean more expensive postage to get gifts to the door on time.

Take Time to 'Comparison Shop' - Some of us get our list together and then just want to get it over and done with. Be patient, compare store prices and options before you go out to buy. This will help stretch that budget further.

Be Creative - Have fun with your gift ideas. Consider homemade or crafted gifts; however, don't forget the time involved making these items! Or make your own gift baskets - know a lot of chocolate lovers? Instead of buying a pre-made gift set - make your own basket of local chocolates or goodies.