Last month, the world watched in horror as another tsunami brought immense devastation, this time to Japan. In light of the tragic earthquake and subsequent tsunami, the editors of YOU Magazine wanted to discuss a topic that's important to all homeowners: homeowners insurance.

Let's start with some important questions:

• Do you know what a typical homeowner's insurance policy covers?
  
  
• If you're currently a homeowner, do you know what your policy does, or more importantly, does not cover?

A study released by the National Association of Insurance Commissioners pointed out that typical property and liability policies do not cover home damage from floods, earthquakes, water line breaks, termites, mold, and several other perils, large and small.

Hurricane Katrina taught us hard lessons about home insurance. One unbelievable story was the loss of home equity experienced by Senator Trent Lott. The Senator's long time insurance company did not cover his home after it was completely destroyed by Katrina.

The reason?

With hurricane insurance you typically have coverage from high winds, but not water damage. The water surge brought onshore by Katrina is what destroyed his home.

Homeowners need to be properly protected. Plan for the worst, hope for the best is prudent advice here. Mortgages and home equity are a big part of every homeowner's financial plan and proactive planning is essential!

If you want to discuss your personal situation, contact the professional who supplied you with this month's issue of YOU Magazine. Don't wait until after a tragedy happens to learn exactly what type of coverage you have. Then, it may be too late to protect yourself, your home, and your financial future.