Insure your possessions for catastrophic events, not situations you can cover out of pocket.   Keeping this rule in mind will keep your insurance costs down.   You need to have high deductibles which will keep the premiums low.   Again, any losses below the deductible is your responsibility to pay. 

Insurance is for possible losses that you can’t afford to pay and those losses should be catastrophic in nature.  What does that mean?   It means a big  loss where the house burns down is a claim you should make.  On the other hand, you wouldn’t want to make what is considered a small claim such as ‘someone stole your bike’.

You need to sit down with your insurance agent to determine your financial limits for possible losses to your property.

 Make the right choices for your family .