More than half the people who purchase San Diego homes in a new area take over the insurance policy from the previous owner. Do not do this. Go through the house with your insurance agent and point out those items you want covered. For example, what about water damage for broken pipes on the carpet. Do you want standard fire insurance? How much coverage do you need? How do you maximize that coverage by including every item you should? I do not agree that you should insure your house for 80 percent of its replacement value, but some companies will give you only that much insurance. Try to get a policy that will give you 100 percent replacement value. However, you do not insure the ground under which your house stands, so most companies take the market value of the house, and deduct 20 percent for the land, which is fair.

Do you want flood insurance if you live in a coastal area? This is special insurance that has to be bought through the federal government. Items such as valuable art, jewelry and furs must be "scheduled"- listed separately in your policy. All policies have a cutoff price, a maximum on which they will pay. You may want to store very expensive art and jewels in a bank vault, which would also reduce your premium payments. I am happy to report that the current trend is to put a limit on the amount of money insurance companies can charge you for liability coverage, the coverage that takes care of such things as guests breaking a leg in your house and suing you for damages. After walking your agent through the house, be extra smart. Make your own home video. Take your video camera (rent one if necessary) and record on tape each item in your house, as well as the cost of its replacement.

MAKING A YEARLY UPDATE
Each year, you should look at the maximum amount that you are covered for in case of damage or burglary. If that maximum is between $25,000 and $50,000, review the items in your house again. Add up what it will cost to replace all of them at this year's prices; include those you have had for many years, but consider especially the new ones-the antiques you bought in Europe, the new television in the guest room, the crystal vase that was this year's anniversary present. Call your agent and increase your coverage to cover everything as indicated by your yearly updated inventory. Do not forget to schedule new items not covered by the maximum amount of dollars in your general policy.

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