There may be contacts that have several addresses and the record keeping of this information is important. The user has the ability to customize various address types (home, work, etc.) to select from when creating a new address.
Add Address Types
Go to My Company > Global Settings > General > Address Types
Click "Create New"
Enter the name of the address type and make sure "Active" is checked
Add New Address
Go to "Contacts" from the main navigation
Click a contact
Scroll down on the overview page
Click "Add New"
Enter all fields