We Americans insure almost everything we own, including ourselves. But do we really need mortgage life insurance or identity theft protection?

These are questions we've been hearing a lot lately from readers and people we know.

The answer: Often, no. But there are exceptions.

Experts tell us that straight level-term insurance generally beats mortgage life insurance, also known as mortgage protection insurance, both price-wise and coverage-wise. This, even though your home mortgage may be your chief financial worry in life.

Term life insurance is low-cost. You get insurance protection for a specific period. Term insurance can cover you for, say, one to 30 years, depending on the policy.

Mortgage insurance protection may be paid monthly or possibly even rolled into your home loan. Depending on the policy, it may cut or pay off your loan balance when you die, or make your mortgage payments if you become disabled.

People often buy this type of decreasing term insurance to cover their mortgages. This means your insurance coverage decreases as the amount you owe declines.

But experts say decreasing-term mortgage protection insurance often costs more than a straight level-term life insurance policy for less coverage. Plus, the mortgage protection you're buying is limited to the value of your mortgage.

So when is mortgage life insurance necessary? Palm Beach, Fla., insurance agent Peter Bono, says mortgage protection insurance could prove attractive if it includes disability protection, and you're unable to get disability coverage any other way. Example: You're in a high-risk profession, such as a roofer or construction worker.

What about identity theft insurance, which many home-owner insurance companies are offering or are in the process of rolling out nationwide?

You can get it for $20 to $50 a year, says John Spagnuolo, spokesman, Insurance Information Institute, New York.

You can buy it separately, or in conjunction with your homeowner's insurance policy.

Identity theft protection services are offered in with credit cards that have a monthly fee of, say $10 or so.

"Typically, identity theft insurance provides reimbursement for expenses, such as phone bills, lost wages, notary and certified mailing costs," Spagnuolo said.

Some companies, he said, have added "resolution or restoration services." These services guide you in the process of recovering your identity.

First, check your homeowner's or renter's insurance policy to see what, if any coverage, you might already have for identity theft. If you find you need identity theft insurance, shop around. "All policies," he said, "are different." Also, be wary of free identity theft protection services. Often, they're only free for a few months.

Some experts say that many don't need this kind of insurance. But each individual situation is different. Before you buy the insurance, consider the cost and services provided.

"We don't think much of [identity theft insurance]," said Robert Hunter, director of insurance for the Consumer Federation of America.

Federal law already limits your liability to $50 if your credit card is lost of stolen. You can go to www.ftc.gov to learn what to do if you're an identity theft victim.

Today, you can check your credit report for free by visiting www.annualcreditreport.com or calling 877-322-8228.

The only circumstance under which identity theft insurance might be worthwhile, Hunter said, is for a business owner who lacks both time and employees to handle an identity theft problem.