Home insurance does what it says it does: it insures your home, whether that is your apartment, your condominium or your house.
Home insurance will also cover the contents of your dwelling. In the case of a disaster, replacing those contents can be a significant cost - and much more than most people expect. It's a critical area where people underestimate their needs particularly with regards to the replacement value of their goods.
Home insurance also provides liability coverage in case someone is hurt on your property. In a litigious world it pays to have liability coverage. It's not mandated by government, but you should have it.
Usually, when you buy a home, insurance is a condition of your mortgage. However, if you rent you may not have considered it. Unless you are living in a furnished apartment you should budget for this. In the case of a disaster - say fire or flood -- you would need temporary lodgings and money to replace your things. Renter's insurance can cover that.
For those of you who are in the process of buying a home you should also consider title insurance. It's a new insurance product and can save you a considerable amount of money if there's ever a problem with the title of your property. Unfortunately, this happens even on new properties in new subdivisions (It happened to us!). For a relatively small fee (in comparison to the cost of your property) you have coverage to ensure your title is accurate. Title insurance covers all costs associated with fixing a title problem, including lawyer's fees.
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