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I have offsite backups to protect my data... at any time there's at least 3 copies of my data, one offsite, and the oldest version is at most 2-3 weeks stale.
Most of my equipment would be covered under my home insurance but I don't really have specific items covered. Business continuance insurance would be something a bit more complicated, and it's not something I've looked at yet.
One thing you absolutely positively should do is grab your camera and walk around, videoing or photographing all of your equipment and other assets, so that if you ever do have to make a claim it's quite clear what was there. Do this periodically and hold up a current newspaper as proof if you're feeling paranoid. Don't forget to look in the mirror to include the camera you're using.
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