We think nothing of protecting our belongings with motion-detector lights, locks, and security systems. But what about our homeowner’s insurance? Mortgage companies require a minimum level of insurance before they’ll loan the money necessary to purchase a home. However, that doesn’t mean you’re completely protected.

The minimum level of insurance generally covers only the replacement cost of the structure of the house. Coverage for the contents of the house varies. Check your policy; make sure you understand what’s covered and what’s not. Here are some things to think about:

Inventory your belongings. Filing a claim involves two steps. You’ll have to prove you owned certain items, and you’ll need to verify their worth. This step is a lot easier to do when you still have your stuff. Although this task seems overwhelming, maintaining a complete record of everything inside your home can protect you if your home is destroyed.

To make the job easier, check out the free software provided by the Insurance Information Institute at www.knowyourstuff.org. “Know Your Stuff” is a free online tool that lets you catalog the items in your home one room at a time. You can upload photos, scanned receipts, and appraisals to document the value of your belongings. You can update your list at any time to add or delete items. If the worst should occur, you will have a complete list of everything in your house stored in a safe location.

Buy floaters. Many homeowners and renters policies limit the amount you can collect on certain big-ticket items like electronics, jewelry, firearms, silverware, and artwork. These values are usually a fraction of the replacement value. You may need to add a special policy known as a "floater" for these types of items. When you purchase something new, save the bill of sale with your files. You should also fax a copy to your insurance agent. If you already own the item, have an appraisal done.

Consider replacement-value insurance. Make sure that your home and its contents are covered by replacement-value insurance. If you lose your home, you want to be able to replace everything you lost with similar, new items. You don't want only “fair market value,” which could be nothing more than the amount your possessions would fetch at a garage sale. As for replacing the home itself, look for guaranteed-replacement-value coverage to cover the cost of rebuilding regardless of how much.

Check with your insurance agent periodically to keep your policy current. Remember that coverage purchased 20 years ago will have been calculated using 20-year-old building costs and inventory values.