Homeowner's insurance policies are created to protect your personal property and the buildings on your land. Sound important? You bet! Here's a crash course to help you get started!

Choose Your Homeowner's Insurance Coverage

The first thing you must determine is how you are going to insure your property. Your choices are generally between actual cost value which will cover your damaged property minus depreciation and replacement cost, which will cover damage at current value to a preset amount.

Take and Inventory of Your Belongings

Once you have chosen a form of coverage, take an inventory of everything in your house so you can set a coverage limit. Information provider Bankrate.com recommends property owners put an inventory list and written appraisals of jewelry, artwork, and photographs in a safe deposit box at the bank.

A video is a great way to record your personal possessions. Insurance company Homesite, homesite.com, says to film your electronics, furniture, kitchen equipment, clothing, and anything else of value. Adding receipts to your records helps prove value.

Read Your Policy's Fine Print!

Homesite also says items such as farm animals, motorcycles, boats, and aircraft are often excluded from policies because they fall under other categories. They recommend you call your insurance provider anytime you have a question.

For more information on homeowners insurance, visit www.bankrate.com, www.insure.com, or www.homesite.com.

Eddie Daroza is a personal investor and stock market junkie. Besides contributing content to efinancedirectory, he works on the financial news show 'Rob Black and Your Money,' broadcast daily on San Francisco's KRON 4. Eddie is also a reporter for PBS's Update News.