Is your home fully insured?

As you review your policy, think about the type of coverage you have and want. Typically, a home's contents are insured for up to one half of the policy's face value. An actual cash-value policy would recoup the replacement cost minus depreciation. Replacement coverage might be better: it covers the cost of rebuilding your home and replacing your possessions at current prices, up to the policy limit.

Consult a builder, realtor or professional appraiser to determine the value of your home rather than attempting to do it yourself. It's a good idea to get a reappraisal every few years; building costs tend to rise, especially in a strong real estate market.

Homeowners' policies in Canada don't offer flood coverage. As for earthquakes, if you live in an area at risk, discuss special coverage with your insurance agent.

Many homeowners' policies provide about $100,000 in liability coverage. This covers the cost of someone suing you if they're injured on your premises, or if you cause injury to someone outside your home. Keep in mind this coverage is subject to limitations and exclusions. For example, you're not covered if you cause injury while driving or if you're violating the law. Fortunately, liability coverage is inexpensive. You may be able to get an umbrella policy that covers losses exceeding both your homeowners' and auto policies.

While your landlord's or condo association's insurance should cover damage to the building's structure, you need insurance to cover your personal belongings. Again, you'd be well served to consider replacement-value rather than cash-value coverage. And make sure your policy includes liability insurance.

Failing to review your insurance coverage can prove to be an unexpectedly costly oversight. Keep yourself on a biannual schedule. That way, you'll safeguard your current lifestyle and future financial security at the same time.