Do you own a personal computer? Protect your investment with the proper insurance.

More people are buying personal computers. For many, this is a major investment trailing only behind buying a home and car in terms of expense. It's important to know how to insure your computer, says the Insurance Information Institute (I.I.I.). Coverage for computers and related accessories such as software and modems can vary from company to company, so call your insurance professional for guidance.

If you have a homeowners or renters policy, your personal computer would be covered, in the home, against all of the basic disasters listed in the policy. So, if your computer is stolen or destroyed in a fire, you would be covered.

Some companies, however, have dollar limits for electronic equipment. This means your computer, printer and related items would be covered only for the amount (usually $5,000) listed in your policy. If you need additional coverage, you can usually raise the dollar amount by paying a little more.

Consider getting a replacement cost rather than an actual cash value policy for your personal belongings. Replacement cost insurance would reimburse you for the current cost of your computer and other personal possessions, while an actual cash value policy would pay the depreciated cost. Replacement cost insurance is approximately 10 percent more expensive than an actual cash value policy, but since m ost items depreciate quickly this can be a very smart investment.

If you plan to regularly take your laptop or portable computer out of your home, find out how much coverage you have on your homeowners or renters policy for your personal possessions away from home. Some insurers offer complete coverage for possessions away from home. Other companies have a dollar limit for personal possessions that are stolen away from home. In most instances it would be 10 percent of your personal possessions coverage. This means that if you have $40,000 worth of coverage for your personal belongings, you would have $4,000 worth of theft protection away from home.