It's important to think about what things in your house are most valuable and what things are least valuable. Here is the approximate order of value for me:

1. My daughter
2. My girlfriend
3. Me
4. Pictures
5. Other data on my computer system
6. Sentimental items, like stuff my mom or dad gave me
7. Vital records
8. Stuff that can be replaced with money

With that list in mind, I construct my layers of security accordingly. The pictures and data require enhanced protection not yet discussed in this thread. My pics and other data are mostly stored on computer systems, which would be a target in a burglary. So, I have several layers of backup, including encrypted files and external backup over the Internet.

Regarding the stuff that can be replaced with money, I have to be honest and say I'm not obsessed with protecting those items. Yeah, it would be a bummer having those things stolen, but they can be replaced with a little effort, and I would look at the replacement process as an opportunity to upgrade or reduce clutter.