It is often said that mortgages and student loans are two of the best kinds of debt you can incur, because they both represent investments in your future. If you're like most people, your home is also the largest financial investment you will ever make. As such, it is also the one you most need to protect, from break-ins, damage, and natural disaster. The way you do that is with a comprehensive homeowner's insurance policy.

In the United States, homeowners insurance and hazard insurance are used interchangeably, because they both serve to protect your home from hazards like fire, wind, hail, lightning, and certain systemic failure, as well as from damage due to vandalism. As well, the contents of your home are covered by this insurance, in case a windstorm makes your house unlivable, or in case someone breaks in and steals your belongings.

Finally, your homeowners insurance generally also includes loss-of-use coverage, which will pay for your hotel bill if a tree falls through your roof – but only for a limited amount of time.

Get the Right Coverage.
Most basic homeowner's policies include protection against the above-named perils, as well as liability protection – which covers injuries should a guest to your home slip and fall, for example, but basic policies don't always fit every person. Consider exploring the coverage a comprehensive homeowner's policy has to offer. For example:

• If you own a business or are in a high-profile career, you may need to increase your liability insurance.
• If you live in an area prone to flooding, you may need to purchase separate flood insurance, as most homeowner's policies exclude damage from flood.
• Earthquake insurance is almost never included in homeowner's policies – if you live in California you should buy a separate policy.

Available Discounts?
While homeowners insurance is necessary, spending a fortune on it may not be. Common discounts that are applicable to most such policies include :

• Bundling - you can save money by covering your home and car with the same company.
• Security - most insurance companies offer discounts for active, monitored security systems.
• Fire safety - fire extinguishers, smoke alarms, and carbon monoxide detectors can save your life, but they can also save you money on your insurance.

What if I live in a Condo?
If you live in a condominium you can - and should – still buy homeowners insurance. In your case, however, you'll want a special condo policy which covers your belongings and any fixtures, flooring or wall covering, since the insurance provided by your association generally covers only the structure itself. Condo policies are sort of like renters policies, except that you own the space where you live.