If you own a home, you need home owners insurance. Mortgage lenders require it. But how much is enough? Do you really have the right coverage? Our financial expert Aaron Maguire answers those questions.

How much do we need?

-Take the time to read the limits on your policy.
· Over 60% of homeowners in the United States are underinsured, primarily because they don't insure their homes to REPLACEMENT VALUE. Replacement value is what it will cost today, to rebuild your home.
· If you are unsure about your benefits, go to your agent and have them explain the policy to you again to make sure you have the right coverage.
· Standard policies offer $100,000 in liability protection, most recommend at least $300,000 of coverage. Especially if you have a pool.
· Consider an umbrella policy…they are not that expensive and they offer coverage over your current homeowner's policy limits.

Are there things the common policy doesn't cover?

2) Every policy is different.
· Chances are, your homeowners policy has limits on what they will pay for items like, lost cash, jewelry, and guns.
· You can "schedule" out these items so they are insured separately for their value
· You will want to review your limits each year to make sure they match your insured items
· If you have remodeled your home…make sure your policy is updated because there might not be enough coverage to cover the remodeling.

What else can we do to make sure we're covered the best we can be?

3) Think of everything...
· Maintain good credit...most insurers will check your credit to determine your rate
· Buy your homeowners and auto insurance from the same carrier to get a discount
· Have a deductible of at least $500…you can save even more money on your premium if you raise your deductible to $1,000.
· Lower your premium by installing a burglar alarm
· Before you buy a home, find out if it had any claims on it...it might be more difficult to insure that home if there were multiple prior claims on the home.

For more financial related information visit www.reliancewealth.com or e-mail Aaron with your questions, or if there's a specific topic you'd like him to cover. Watch "It's Your Money" Mondays at 11:30 on KSFY.