Umbrella liability. This is a separate policy that gives you extra liability coverage on top of the coverage in your homeowner's and auto insurance policies. You can buy it in million-dollar amounts, usually up to $5 million. If someone sues you for a huge amount, this coverage is designed to protect your other assets.

Scheduled property. Your homeowner's policy may have limits on coverage for individual items such as silverware, coin collections, art, antiques and furs. But you can purchase extra coverage on these items to insure them for their full replacement value or to have them replaced in the event they are lost or stolen.

Water problems. A backed-up sewer drain could do huge damage in your basement and destroy your carpets and appliances -- and still not be covered if you don't specifically have water backup coverage. Flood insurance is sold separately, and it's worth investigating.

Renters need coverage for personal possessions. And if you are renting a ground-floor apartment, keep in mind that typical renter's policies do not cover flood damage.

If you're renting someone else's condo, you might be surprised that the owner doesn't even have a policy -- leaving a huge financial gap between your personal possessions and the price to repair walls and floors after a fire. So ask the owner to show you a certificate of insurance.

A final Terry's Tip: Use a video camera to document your possessions with a narrated video tour of your home -- pointing out all the upgrades such as marble countertops or wool carpet or expensive wall coverings. Make two copies, sending one to your insurance agent and storing the other off premises.

Yes, the insurance is expensive -- but not nearly as expensive as trying to replace all your stuff. And that's The Savage Truth.