If you’re a homeowner, your house may be worth less than it was a few years ago. But you could be paying the same or more to insure it. Why is that?
You pay insurance for the cost of rebuilding a damaged home.  The price of a home is based on the market value of that home and the land it’s on.  And despite the deep housing bust the last few years, the cost of rebuilding has not decreased.
You might be trying to find any place to save money. But doing it with your insurance policies could be a costly mistake. When you see your home value going down, don’t assume you can drop the value of your homeowner’s insurance.
Raising deductibles can be costly because if you do have a claim, you’ll have to come up with more cash yourself.  You should also be careful when reducing your coverage.  The insurance usually must be enough to cover how much is owed on the mortgage, even if that is more than the value of the home.
While low insurance prices are alluring, be cautious in accepting a new policy based on price.  It’s important to make sure you have adequate coverage and that your carrier will treat you well in the event of a claim.