Most people start with a floater on their homeowners policy, which is a good start depending on how you plan on using the camera. Keep in mind however, that such floaters are usually limited to theft and loss and does not include the more common drop-it-on-the-floor trick. Additionally, these floaters usually require a police report or some form of proof that it was lost, which can be difficult if you happen to be vacationing in some remote area of Tibet. Just don't be surprised when it's time to make the claim with the insurance company.

A better way to go is with a personal articles policy, which applies to cameras as well as jewelry, artwork, collectibles, etc. It is separate from the homeowners policy and usually does not require the latter. It is comprehensive, worldwide, no deductible, and covers any damage to the camera by any means--except intentional damage, wear and tear, and acts of war. Cost is about $1.50 for every $100 insured. A bargain by any means. I have my policy through State Farm.