Consider local risks. "No matter where you live in the United States, there's some risk of a natural disaster," says Chuck Nyce, senior director of knowledge resources for the American Institute of CPCU and the Insurance Institute of America. But there are some things you might be able to do to at least temper your property risks. For coastal properties, it might include things like roof straps or hurricane-resistant windows, he says.

Smart money move: If you're making modifications to bring down your rates, ask your agent which improvements make the most difference and how much you'll save.

Making smarter buying decisions

1. Overall 2. Health insurance 3. Life and disability income insurance 4. Home and auto

Go through your policy with your agent to make sure you're covered for every aspect of what the local conditions may throw at you. In many cases, that means some pretty specific policies -- like windstorm, flood or earthquake coverage.

In addition, be aware of "two perils" clauses in insurance, says Rejda. After Hurricane Katrina, a lot of homeowners discovered that if there were two sources of damage (like windstorm and flood), and they were protected against one and not the other; companies were denying claims.

Investigate flood insurance. Just because your mortgage company didn't require it, doesn't mean you don't need it, says Carolyn Gorman, vice president of the Insurance Information Institute, an industry trade and research organization. Some private companies sell it, but most of the policies are issued through the federal government's National Flood Insurance Program. You usually buy it through your agent, who will service the policy. Her advice: buy it if you believe there is any chance you might need it.

The downside: The coverage is limited currently to $250,000, she says. While it's not enough to protect everyone from a total loss, most flood claims average $14,000, Gorman says.

Protect your pipes. Consider sewer and drain backup coverage, says Gorman. It costs about $25 annually. Many people assume it's included in their homeowners policy, "but it's not," she says.

Expand your umbrella. In 2008, "an umbrella is about your best buy in insurance," says Hungelmann. Umbrellas cover you if you're sued in a liability issue.

Usually you can get $1 million in coverage for roughly $100 to $200 annually, says Nyce.

Insurance experts used to recommend umbrella policies of $1 million. But with the rising cost of living and steep increases in health care, many now recommend going for $2 million, if you have the assets to justify it. That extra million can run as little as $50 annually, says Gorman.

Include entrepreneurial activities. Running a home-based business or just doing a lot of work from home? Talk with your agent. You may want to pick up additional liability coverage, or increase your contents insurance to cover inventory or equipment, says Hungelmann.

Ask if your homeowners policy covers the dorm. If kids are leaving for college, check to see if their belongings are covered under your existing policy, says Hungelmann. In many cases, they won't need additional insurance.

If kids are living off campus, beware of co-signing on leases, which could make you financially responsible if there is ever a liability issue, Hungelmann says. Instead, sign a financial guarantee that will obligate you for rent but not make you liable for accidents, injuries and mishaps.

If you've already signed? Talk to your agent about extending your liability coverage to a second residence, says Hungelmann. Cost: about $15 annually. And you can use the same move to protect your vacation condo too, he says.