Offer your thoughts or opinion on the input financial query or topic using your financial background.

Which types of insurances do I need to buy?
Can you afford to replace your home if it suffers major damage in a fire or earthquake?  Is your home at risk of flooding?  In the United States, one can purchase insurance for each of these risks, but the customer has to ask about each of them.  (Most default American homeowners policies cover fire and wind damage, but not earthquake or flooding.  I am not sure about hurricane or tornado damage.) Your most cost-effective insurance against fire, earthquake, or flood damage is to prevent or minimize such damage.  Practical measures cannot completely eliminate these risks, so homeowners' insurance is still a good idea (unless you are so rich you can easily afford to replace your home).  But you can do things like: Your most cost-effective health insurance is to have clean water, wash your hands before handling food, eat healthily (including enough protein, vitamins, and minerals), exercise regularly, and not smoke.  Your medical insurance can cover some of the inevitable large medical expenses, but cannot make you healthy.