Among homeowner’s policies, HO-3 and HO-5 are the two most common types but the HO-5 policy is probably better. Only the HO-5 fully covers damages to the home’s contents. This coverage guarantees that your personal belongings will be covered no matter what kind of disaster strikes. (However, you will need a separate policy or rider for flood or earthquake coverage.)
When insuring the contents of your home, make sure that your policy offers “replacement value” and not “cash value.” The cash value of an item might is the current resale value; the replacement value of an item is how much it will cost you to go to the store and buy a new one.
A TV you bought several years ago may have a scant cash value now. However, replacing that TV with a comparable model is sure to cost you much more.
When you insure the contents of your home, the insurance company will ask you for a complete inventory, including details such as brand names, estimated worth, details of purchase, etc. The easiest way to gather this documentation is to walk through your house with a video camera, describing the items and showing receipts.