Home insurance covers only improvements, not the land. For full coverage, ask for replacement value coverage. Otherwise, your insurance company will pay for only the amount indicated. You need to check and increase your coverage as the value of your home goes up if you wish to keep foreclosure home as your residence or rental property.

Consider different policies for your home and for your rental property. You may want homeowners insurance to cover all of your personal effects in your own home while you may not want to do it for your rental properties.
There is no one size fits all home insurance policy. Get multiple quotes and ask for alternative policy options to save money.

Save money on your home insurance

Consider a basic coverage against catastrophic exposures rather than small frequent losses or damages depending on your decision whether to hold or flip foreclosure home.
Increase your deductibles to lower your insurance premium.
Set up home security system, buy a fire extinguisher, burglar bars, etc. to reduce your home insurance premium to raise selling price of foreclosure property.
Ask your home insurance agent how you can reduce your premium.

For detailed information on home insurance Yahoo! Home and Renters Insurance has good sources.

To compare different home insurance plans at insurance.com that provides online home insurance quote.

If you are looking at Yellow Pages, give a chance to home insurance companies listed at the end. You may get better deals!