Maintaining a home can be a costly experience. Some people try to save by cutting back on their home insurance coverage. That means if something unexpected happens that your policy does not cover, you could end up suffering catastrophic financial losses. Instead of leaving yourself vulnerable to that situation, consider ways you can save money while maintaining adequate home insurance coverage.

1.   Do Comparison Shopping

The biggest mistake many people make is taking the first policy option they see. You should work with your independent insurance agent to thoroughly vet your insurance options. It also can’t hurt to visit the National Association of Insurance Commissioners’ website. They provide consumers with a lot of valuable information on different insurers. You can look up complaints, whether the insurer is properly licensed, and their financial info.

Compare the level of coverage and the current rates. While one insurer may offer a lower premium, you may end up getting more value by going with a slightly higher rate with more policy coverage options.

2.   Go With a Higher Deductible

Picking a higher home insurance deductible often results in lower premiums. You can save up to 25 percent by picking a deductible of $1,000 versus a $500 deductible.

But before choosing this option, think about your current financial state. Could you cover the higher deductible cost if an accident occurs? If the answer is no, one way to get around this conundrum is by consistently adding money to an emergency fund designated to cover your homeowners insurance premium.

3.   Think About What You Want to Cover

You may not want to get coverage that equals the worth of your home. What you paid includes the land on which your house sits. Estimate how much it would cost to build your home from scratch in the event of a fire or damage from a natural weather event. Make sure you are honest about the true cost. The goal is to have enough to recover your losses without leaving you and your family in a financial hole.

There are other ways you can keep up adequate home insurance coverage without feeling financially overwhelmed. Sitting down with an insurance agent can clear up any confusion. They may have information on discounts you could be eligible for — such as discounts for new construction or for bundling your home and auto insurance. A little research goes a long way towards making sure you have the right home insurance coverage for your budget.