6 Insurance Policies All Homeowners Should Consider

Your home is one of the biggest investments you will ever make, so you should do everything in your power to protect it. You spent time and money on making your home beautiful, and the last thing you’d want is for disaster to strike with no insurance to cover the cost of damages. Having the right insurance policies can help you avoid paying out of pocket for these big-time repairs. 

If you are a homeowner, you should look into these six insurance policies.

Flood insurance
Many homeowners assume that damage from flooding is covered by homeowners insurance, but this applies only when the flooding is caused by a busted pipe or other similar unnatural causes. If your home floods because of a flash flood, a rainstorm or a river overflowing, you will need flood insurance to cover the cost of the damage.

Homeowners/renters insurance
If a tornado or a fire damages your home and your belongings, homeowners insurance will cover both your home and your material possessions. Make sure to write down a list of all the items in your home and take photos of them in the event that you need to make a claim. If you have homeowners insurance, make sure that you have guaranteed replacement cost.

Earthquake insurance
This is location-specific risk coverage that you may or may not or cannot take. If you live in a place where there are multiple earthquakes, like California, then you will want to protect your home by having earthquake insurance, because standard homeowners insurance will not cover the damages.

Personal umbrella policy
This is an inexpensive and important form of insurance coverage for when your standard insurance policies have hit their maximums. You can protect your home from potential hazards for little money in premiums.

Sinkhole insurance
If you live in Florida, you may be very familiar with sinkholes. There are also occasionally sinkholes in Kentucky, Ohio, Michigan, Tennessee and Pennsylvania. Your basic homeowners insurance won’t cover damages caused by sinkholes. You will need to purchase separate coverage to take care of these issues.

Fire insurance
Fire insurance will cover the cost of repairing or rebuilding structures that have been destroyed or damaged by fire. Your fire insurance will have four different components: dwelling, other structures, loss of use and personal property. Fire insurance may also protect you if a fire originating in your home causes damage to surrounding homes. If you live in an area that is at high risk for wildfires, you will want to have this coverage.