Homeowner’s Insurance, unlike your Auto Insurance, is not legally required by law. However, if you finance your home with a mortgage, you will be required by your lender to have insurance. Moreover, it is a great investment for the protection of your home. Now, the question is, what coverages should you include in your Homeowner’s Insurance and what other insurance policies should you purchase for your home?

Homeowner’s Insurance

First and foremost, you need to have Homeowner’s Insurance policy, because this is the main policy that will protect your house and property as well as your belongings and guests at your home. Comprehensive Homeowner’s Insurance policies usually protect your personal property and possessions, cover bodily injury and property damage to others, and pay for medical expenses if something happens to guests at your home. Homeowner’s Insurance will cover your personal belongings; however, if you have any valuable items in your home, such as jewelry, fine art, or collectibles, make sure to protect them with additional coverage. Your home and property will also be covered in the event of fire or storm, but not from earthquakes or floods. For these natural disasters, you should purchase Earthquake Insurance and Flood Insurance.

Flood Insurance

Flood Insurance is the kind of insurance you certainly need to consider, and you may even be required by law to have it if you live in a high-risk area. The cost of the Flood Insurance is the same across all insurance carriers, as it is supported by a governmental initiative. Since your Homeowner’s Insurance does not protect your property or belongings in the event of flood, this protection is necessary to have, as even a few inches of water can result in severe damage to your property.

Earthquake Insurance

If you live in a high-risk area or want to make sure your home is protected in the event of an earthquake, purchasing Earthquake Insurance is the best option for you, because damages from earthquakes are not covered by Homeowner’s Insurance policies. Even if you do not live in a high-risk area, Earthquake Insurance will still be useful for you, because the damages caused by earthquakes can be severe and very costly.

Rental Dwelling Insurance

Renting out your vacation home or spare bedrooms is a good way to make extra money on the side, but it is important that your rental property is protected. If you lease your secondary property for long periods of time or on a regular basis, Rental Dwelling Insurance is what you need to make sure your property is covered from accidents.

There are many additional coverages that might work for you and your home. Working with an independent agent, you can always get policy recommendations and useful advice regarding the best insurance policy for your home.

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