Dear Harry: Last year we bought a newly constructed home in the suburbs. Our homeowner's insurance policy just came due, and I decided to check it out. The policy is for $225,000, which is the price we paid for the house. However, the price includes the land on which the house is built and the roughly one-third of an acre back and front lawns. We called our broker, and he told us that the mortgage company insisted on the amount of the sale as the amount of the insurance. In addition, the mortgage is for $150,000 so the mortgage is way over-covered. Our premium is $618 so a reduction for the land value could save us quite a few bucks. How can we go about getting them to reduce the insurance required?

What Harry says: Step one is to ask your broker to have someone come out to appraise the value of that land. You can then use that figure to contact the lender and get the requirement reduced. Just be certain that you have enough coverage to replace the house if it's destroyed. Your broker can help you in this area as well. The problem with homeowner's insurance is more often with being underinsured rather than overinsured. As a result, losses are not fully covered and rebuilding becomes a real financial burden. I am strongly in favor of having a policy that covers full reconstruction cost. It's well worth the extra premium. *

Write Harry Gross c/o the Daily News, 400 N. Broad St., Philadelphia, PA 19130. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.