This article today I would like to talk about several tips, tricks, and techniques that just about anybody can use to help avoid certain traps when it comes to homeowners insurance.

Most people don't think twice about their insurance policies especially not their homeowners insurance. It's just something the bank requires you to have. You buy it, then you forget about it... until some unspeakable tragedy occurs like your house being destroyed by fire, at which time most people don't know what to do or where to turn.

Because of this, there are several ways that insurance companies may take advantage of you in any number of ways and that's why I wanted to write this article today to give you a sort of heads up and give you the information you need to fight back.

The first thing you should do is read your policy carefully. You should do this when you first purchase the policy but also obviously whenever you need to file a claim. Most homeowners policies discuss two different things; actual cash value and replacement value.

The actual cash value usually has a lower premium because it will only pay the cash value of your property. The problem with that is, things decrease in value as soon as you buy them so that TV you bought for $2000 may only be worth $300 today and that's what you'll get for it from the insurance company which is not enough to replace it.

The replacement value policies cover the cost to actually replace an item. Even though that $2000 TV may only be worth $300 today, this policy will pay you $2000 so you can go out and buy a new one to replace the destroyed one. Because of this, obviously this type of policy will cost more.

A good idea is to contact your insurance agent every year or two and discuss your policy just to keep up to date and aware of everything involved. Be sure to inquire about policy limits and coverage during this time.

Finally a really good idea is to make a complete inventory of everything you own. You should do this two different ways; first create a written list of every item you own including serial numbers and descriptions, second create videos of everything you own.

In this technological age it's very easy to walk through your house with a camcorder and record everything and with a record like this, it's very difficult for your insurance company to mess around with you. Be sure to keep these two things off-site preferably in a safe deposit box at a bank or in a fireproof box at a relatives house such as your parents.

So there you have several very simple things that you can do to make sure you don't get taken advantage of by your insurance company when it comes to your homeowners insurance policy. Hopefully you'll never have to use these tips!

J.P. Morton runs a clearance patio furniture web site where he also reviews the best martha stewart patio furniture for your deck. He has been an article writer online for well over 10 years and also enjoys rock climbing and white water rafting.