Whether or not you have a mortgage, you want to prevent financial loss due to damage to your home and personal items.  Lenders require homeowners with mortgages to buy home insurance.  You may think that the policy terms required by your lender are acceptable, but that might not be the case.  Remember, lenders are only concerned that you cover the risks to your property they have financed. This most likely does not include your full exposure to loss were your home and personal property to be destroyed. It is important that you assess your property, determine its value, and make sure you get the full coverage you need in the case of a loss.

You'll want to look at two factors - protection and price.  The proper home insurance coverage consists of buying the right type of policy and having the proper levels of protection within that policy. Don't forget to include special provisions for jewelry, your computer, and any other personal items with a high value.