Do you have a current backup? From past experience, I would guess that less than 20% of people have a good backup strategy in place. Backup options have increased in number and greatly simplified over the last few years, so there is no reason not to protect your data.
One popular take on this subject is the 321 backup philosophy. 3 copies of your data - on 2 different types of media - with 1 existing off-site. Simple and effective.
We use the Mozy online backup service. For home use, it's only $5/month. That's cheap insurance and peace of mind. The current Mozy client supports encryption - both in transfer and on their servers, as well as duplication of your online backup to a local external hard drive. Let's break down how this fits the 321 philosophy:
3 copies of your data: You've got one on your C:, one on Mozy's servers, and one on your external hard drive.
2 types of media: You've got copies of your data on locally accessible hard drives, plus another copy on redundant arrays at Mozy's facilities.
1 copy off-site: Again, Mozy's storage facilities. If your home or office experienced flooding or fire, you've already got an up-to-date copy of your data elsewhere.
If you would like to sign up for a home account, visit www.mozy.com. If you need a business account, we are a licensed reseller and can help you monitor and facilitate your data recovery in the event of a failure. Call or email us for more information.