I currently only have coverage required by the state of Michigan for financial reasons. Other than that, I have an old car that isn't worth the collision, full and endorsement/riders insurance premiums. Property Insurance Since there are different styles of homes, insurers offer different types of home insurance coverages. Since I have a single family home, I have found that the most suitable policy is the HO-3. This policy insures all major risks, except floods, earthquakes, wars and nuclear accidents. A home is the most important property a person can own, so 100% replacement cost coverage is essential. Insurers generally cover home contents between 50 and 75% of the home's value. The most appropriate action is to make a list of the contents of the house and estimate exactly the coverage needed. Choosing your deductible amount could be tricky. Although I get lower premiums when I increase my deductible, I should consider how much I can afford to pay before the insurance kicks in. One last thing to consider are coverages that don't cost a lot of money but could bust my budget if this happens like sewer backup coverage. This might only cost me $5 a month, but if the sewer goes back to working like it did last summer, I might have to pay a fortune to repair the damage.