For most people, homeowners' insurance isn't an option, but a condition of their home loans. Since the purchase of a house is the single biggest investment of most people's lives, it makes sense to protect the investment and its contents.

The most complete property coverage for your house is a form of replacement coverage. This coverage is usually equal to the cost of completely rebuilding your home in the event of a total loss, which should not be confused with the market value of your home.

The rule of thumb is to insure your possessions for half the value of your home. A safer course is to make a complete analysis of everything you own.

You've probably heard horror stories about homeowners who've been sued for millions of dollars because somebody slipped on their sidewalk. If your dog were to bite someone or if one of your neighbors tripped and fell down your stairs, you could be held responsible for the damages and any or all medical expenses incurred.

There are several different types of additional home coverage that you may wish to investigate in addition to what standard policies offer. First, there is umbrella liability insurance.

Homeowners aren't the only people who need insurance. If a pipe bursts and floods your apartment, the landlord may replace the carpet, but the damage to your clothes, furniture, or other items is your responsibility.