Be grateful to your mortgage lender for insisting you have homeowners insurance before you close! They do it to protect their collateral—your home. But you may ultimately benefit, because no one is immune to natural disasters or thievery or rotten luck. And most people don't have the cash lying around to pay for the costs of replacing a roof destroyed by a hurricane, or electronic equipment stolen while you're out of town, or a house full of furniture and clothes should there be a fire.

Shop around for the best coverage and rates. As a rule of thumb, it's best to purchase the most comprehensive coverage possible. You can cut the cost by taking a higher deductible.

All policies are different, but here are some items that are typically covered by homeowners insurance:

Lenders require Florida homeowners who live near the coast or any flood-prone area to purchase flood and/or windstorm insurance, which also covers damage or loss due to hurricanes. Costs vary, but you can get an idea of prices for your area by visiting the Florida Office of Insurance Regulations' Compare Homeowner Insurance Rates.