• Liability: Liability insurance covers you in the event that someone is injured on your property and sues you. Although this situation might seem improbable, don’t overlook obtaining adequate protection.
  
  
• Earthquake Insurance: You actually will not find coverage for earthquake damage in your regular homeowner’s policy. In fact, most standard homeowner’s insurance policies do not even cover damage or loss resulting from “proximate” causes, such as flooding or theft. If you choose to obtain earthquake insurance, you must purchase it separately or additionally, as an extended policy. See our Earthquake Insurance  article for more information.

However, you can take certain steps that might result in lower premiums. Following are some suggestions, but be sure also to ask your insurer about requirements for discounts or special rates:

• Obtain your homeowner’s insurance through the same company from which you hold another type of policy, such as your car insurance. Often companies offer a discount for purchase of multiple types of insurance.
  
  
• If you feel rather confident that a major emergency is unlikely to strike — and you have the financial cushion to assume the risk — you might opt for a higher deductible so you can lower your premium costs.
  
  
• Add security devices, such as alarms and deadbolts, to your home, which will usually result in a lower premium.
  
  
• Install fire safety devices, such as smoke alarms (usually insurers require these, anyway) and a sprinkler system (a costly addition, but an option to consider when undertaking renovations or building a new home). Remember to place fire extinguishers in key areas, such as your kitchen and garage.