The simple fact is, most of us spend way too much money for our home insurance. And we often end up with the wrong coverage to boot!

We don't want that to happen to you, so here are some tips to make sure you get the best insurance policy around for the lowest premium.

First and most important, comparison shop! Get quotes on premiums from at least three different companies for the same coverage. Don't let an agent change any part of the coverage, or you'll end up comparing apples with oranges.

That said, you want to be very specific when getting the quotes. Here are 6 key ways you can get the right coverage and save money. Be sure you ask for the following coverage:

1. A high deductible, say $1,000. You may not realize it, but increasing your deductible to $1,000 could cut your premium by one-third. If you can afford to pay $1,000 out of pocket, we highly recommend raising your deductible.

2. 80%-100% of the replacement value of your house, not the market value. The sales price of your house may be substantially higher than the cost to rebuild, so don't base your coverage on that or you'll pay much more than you need to. Instead, call a couple of builders in your area and ask what construction costs per square foot. Using the average cost, multiply that number by your home's total square footage. Insure that amount and nothing more.

3. 100% of the replacement value of your possessions, not the actual cash value. The high definition TV you bought for $5,000 may be worth only $1000 today if you sold it. That $1000 is all your insurance company will pay you if you have cash value coverage. But it might cost you $2,500 or $3,000 to replace that TV if it's stolen or destroyed, meaning you'll have to come up with a couple of thousand more. Add up the replacement price of everything in your home from canned goods to your camcorder. Insure your property for the total amount.

Dolan Smart Money Move: Protect yourself by taking careful inventory of what you own. You don't need to spend a month listing everything in triplicate. Just turn on a video recorder and walk from room to room, capturing everything on video and vocally describing all the particulars (if you don't own a video camera, rent or borrow one). Put the disk or videotape in a safe-deposit box at the bank or in an at-home fireproof safe. Then if you have to make a claim, you'll have both video and audio proof of what's insured.

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