Great advice from everyone.
You should also remember to clean the o-ring with a lint-free cloth prior to applying fresh silicone. This will help keep dust bunnies, hairs, and other particles out of the sealing surface. Trust me when I say that it only takes a single hair to cause a leak in a housing.
NOTE: always refer to the owners manual on the use of silicone. Some companies (like the Sea Life Reefmaster digitals) use impregnated o-rings which are supposed to be used dry and not removed unless absolutely necessary and usually by a service shop.