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. You may be surprised to find out the total value of your possessions. It's usually more than you might first expect. Homeowner's insurance generally protects against loss due to fire, theft, smoke, vandalism, and/or accidents for which the insured is responsible. Depending on the form of coverage you purchase, you could be protected for up to 18 different types of damage recognized by the insurance industry. These would include virtually everything except floods, earthquakes and other natural disasters. Additional insurance can be purchased if you live in a high-risk area for these disasters.