Looking for cheap home insurance? Well, if the price sounds too good to believe, here are some red flags when making a buying decision.

1. If you are offered The Texas Fair Plan, be careful. This is a basic state-funded policy, which generally does not include coverage for falling objects and sudden discharge of water, to name a few. To qualify for the policy, you must first have been denied coverage by three other companies. Sure, the price may be good, but you’re sacrificing coverage. And if the Agent is not explaining this type of home policy to you, beware!

2. Home Reconstruction coverage is not only to rebuild or repair your home at the current cost of labor and materials, not including any discounts a builder may obtain, but also the cost of removing debris, including slab and the driveway. Review the reconstruction estimate with your agent.

3. Often the lender will require you to purchase a homeowners policy with homeowners coverage that is equal to or greater than the loan. However, the policy only covers the cost of rebuilding or repair, and the cost may not be enough to cover the loan. The bank would never receive a direct payment from the insurance company to pay off the loan. Also, the land will always be there and is often the most expensive part of buying a home. Therefore, discuss this issue with your lender.

4. Try to bundle your policies to get a discount. However, this is not always cheaper. Compared.

5. A roof less than 5 years old can often get a discount.

6. An alarm and fire alarm monitored by an outside source may get you a discount. Often the required proof is an invoice for the service you use. The fact that you have the alarm doesn’t get you the discount, but having the service up and running is what gets you the discount.

7. If you have a wood frame home, upgrading it to hardboard, brick, or stucco might get you a discount.

8. If your home is 35 years or older, replacing 100% of the wiring and plumbing might get you a discount, or at least get quotes from more companies to compare. Proof is often required. A copy of the invoice and payment made, or a letter from the licensed contractor will be considered as proof.

9. Professional discounts are sometimes available, depending on your type of profession. The proof would be a copy of your degree, license or certification.

10. Always ask about ways to lower your premium or other available discounts.