Odds are a new home is going to be the largest purchase you ever make.  So you definitely want to make sure that your investment is protected in the case of a disaster.  Also, almost all home lenders require homeowners insurance to secure a mortgage, so you will want to check with your lender to see what amount over coverage is required.

It takes additional work to sort through the details of a homeowners insurance policy, but a little time invested now can pay off a great deal later. Here are some tips on figuring out how to get a homeowners' insurance policy that meets your needs.

A typical homeowners insurance policy can actually pay out in four different ways:

• Against damage to the structure of the home itself.

• Against damage to personal property within the home.

• Against liability claims made by someone in the home.

• To pay for expenses incurred while you were unable to live in the home.

Damage basics
The types of disaster covered vary.  Generally you'll be offered what's called an "HO-3" policy, which covers 16 different types of disaster, including fire, lightning, windstorms or hurricanes, theft and vandalism, ice damage, explosions, falling objects, or damage from vehicles.  Frozen pipes and sudden damage from a heater or air conditioner would also be covered.  Generally excluded: damage from war or nuclear disaster.

Disasters
Note that floods are generally not included in the list of covered disasters.  Depending on where you are buying, flood insurance may be requirement for obtaining a mortgage. You can get flood insurance through the National Flood Insurance Program (NFIP), which is run by the federal government.  Residential coverage goes up to $250,000 for the home and $100,000 for its contents. 

Earthquakes are also generally not included in a standard policy.  Californians buying houses can purchase earthquake insurance through the California Earthquake Authority; non-Californians may still look into earthquake insurance.  The Nevada Seismological Laboratory has more information to help you decide on whether it's worth the additional cost. (Read: Dealing with Floods, Earthquakes and other Natural Disasters)

What you're getting
You want to make sure you're insuring against the cost to rebuild, not the market value of the home.  An older, less expensive home will cost considerably more to rebuild than to resell.  The Rocky Mountain Insurance Information Association gives this quick rule of thumb: multiply the local building costs per square foot by the total square footage of your house.  Also see if your insurer has an "inflation guard" clause that will automatically increase your coverage if the costs of construction rise.

As with the home itself, it may make more sense to insure against the replacement cost of items in the home rather than the actual value of the item.

Making property claims on homeowners' insurance can lead to increases in the cost of your policy, so you may choose to keep deductibles high.

Other insurance needs
If you run a small business from your home, you'll need separate insurance; Yet another category that requires separate consideration are domestic workers in your home -- cleaning services, nannies, caretakers.  If you know you'll have people coming to work in your home, discuss this with your insurance agent.  Liability coverage generally covers any injuries people in your home might have, but with workers in your home you might want to increase the coverage substantially.  (Look at it this way: if someone working in your home is injured, you'll bear some responsibility for their medical bills.)

Review your coverage
Once you get homeowners insurance, your work isn't done: you'll want to review your coverage every year, especially if you make changes to your home or buy new items that might not be covered.

If you're still scratching your head, there are many resources on the Web to help such as the Insurance Information Institute to help you sort out the finer points.