In most cases homeowners insurance will cover the contents of your home to an extent of 50-70% of the total coverage amount of your policy.

In order to see whether it is enough or not, you have to make an inventory of your belongings. Compile a detailed list of all your possessions with an approximate cost of replacing each item if it were damaged or stolen. If you think your policy doesn't provide enough coverage for your belongings you might want to ask your insurance company to raise your coverage limits to the desired amount.

You have two options for covering your belongings: actual cash value and replacement cost. The first will cover the cost of replacing the damaged items minus the depreciation value. The second will cover the actual cost of replacing the items damage without regard to depreciation.

Let's look at an example: your old stereo gets destroyed due to a lightning. Having a replacement cost policy covering your possessions you will be paid to replace your old stereo with a new one. Having an actual cash value policy you will be paid only the value of your old stereo, which will of course be only a fraction of the price you will have to pay for a new one. Certain companies push their replacement cost policies further by actually delivering and replacing the damage item themselves rather than just paying for the damage.

Replacement cost coverage policies are usually about 10 percent more expensive than those providing actual cash value coverage. In case you choose to cover your possessions against flood damage, they will only be covered on an actual cash value principle.

Expensive items usually have certain limits in what concerns the value of their coverage. Jewelry is typically limited to $1,000-$2,000 depending on the actual policy.

If you feel that the limits don't provide enough coverage for valuable items in your home you might want to get an additional floater or an endorsement for your possessions. You can cover the items separately or as a collection, and there won't be any deductibles involved. The premium you will be charged with depends on the essence of the item (or collection), its value and the area of your residence.

You will most likely be required to provide the actual value of the items in the form of a receipt (if it's a recent purchase) or an appraisal certificate.

Other important assets:

1. Your property
2. Your personal belongings.
3. Expenses due to your home being damaged
4. Personal liability towards other parties