Shopping for short-term household insurance can be confusing. Everyone wants the best coverage for the best price. Sometimes in our effort to keep the cost down when it comes to this grudge purchase, we overlook important elements of the contract.

So what can you do?

Here are some helpful hints that can help you save money when you buy your policy:

1. Select a strong insurer

   Always ask about the company. When losses occur fast, fair claims service is a must with homeowner's insurance.

   The best way to find a reputable broker is a simple referral from a friend who has received good service from their broker.

2. Don't guess how much you need

   The cost of rebuilding your home might exceed your estimate. Consult your agent and determine how much you need to rebuild from the ground up.

3. Don't under-insure your possessions

   Saving a few Rand up front could cost you a significant amount of money at a time of loss.

4. Replacement value

   Unless you insure for the replacement cost of household possessions, you will be paid only purchase price, less depreciation, for items burnt or stolen.

5. Choose an appropriate deductible

   The higher the amount of a property loss you elect to 'self-insure', the lower your premium is likely to be.

6. Schedule valuable items

   Items such as art, furs, antiques and collectibles all have coverage limitations on a policy. Make sure you have the appropriate coverage; double-check with your agent.

7. Ask about 'off-premises' coverage

   Don't take a chance with expensive equipment. Make sure your insurance covers possessions in transit.

8. Make sure you get property 'credits'

   Many policies offer discounts. Always check for the discounts offered.

9. Flood insurance

   Floods are not covered under the standard homeowner's policy. If you live in an area that is vulnerable to flooding, make sure you get coverage.

10. Don't insure unnecessary items

    If you are careful, take a few risks. Some items cost a lot to insure (like bicycles and cameras). Find out how much you might save by leaving them out of your policy and reduce the risk when it comes to these items by keeping a close watch on them.

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