The Types of Insurance Every Homeowner Should Consider

Oh...my...goodness. Sinkholes, hurricanes, earthquakes, floods, fires. There’s been a lot of media coverage lately about these types of natural disasters.

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When I see images on the news and online showing the aftermath I can’t imagine what those homeowners are feeling or going through. Those images have also made me question and revisit my insurance coverage as a homeowner.

Our homes are our biggest assets and possibly also carry our largest amount of debt. So it’s important that we’re properly covered.

(This information is not meant to be financial advice and is just for educational purposes. This post may include affiliate links. Should you click an affiliate link and make a purchase I may receive a small commission at no extra cost to you.)

Like most homeowners I have typical homeowners insurance which covers the following:

• The dwelling: Damages to the home and even unattached buildings like your shed and garage
• Personal property: This covers furniture, clothes, and contents in the home or structure should they be stolen or damaged from just about everything except flooding and water damage.
• Liability protection: Kicks in should someone file a claim because they got hurt at the house. 
• Medical payments: If someone gets hurt on the property this will cover the costs of their medical bills.
• Loss of use: If something should damage the house so it’s no longer livable, this covers living expenses until the necessary repairs are made. 

As you can see, homeowners insurance covers a lot, but it doesn’t cover everything. Depending on the region of the country or the state you live in, additional insurance may be a good monetary decision.

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Flood insurance

Despite what many homeowners think, homeowners insurance doesn’t cover flooding. Flooding in your home can cause a lot of expensive damage.

 If you live anywhere near a body of water you should at least get some quotes on flood insurance. You never know when it may rain too much too fast and cause the nearby river, lake, or pond to overflow.

And if you don’t live near a body of water, you may still want to consider getting flood insurance.

Statistics show that almost 25% of flood insurance claims are from areas outside of areas designated as high risk for flooding. Despite that, many people who don’t live in high-risk areas don’t have flood insurance because they don’t think they’ll need it.

Now many new homeowners with mortgages are required to get flood insurance if they live in a known flood zone. But those who don’t live in flood zones aren’t required to.

I don’t live in a designated flood zone and wasn’t required by my mortgage lender to get flood insurance, but I got some anyway.

Florida has a rainy season where there can be heavy downpours multiple times during the week. We are also prone to hurricanes which can cause flooding. While neither of these has caused any issues for me yet, I don’t want to take a chance.

While not cheap, the cost of the flood insurance is minimal compared to the cost of repairs should the rainwaters have nowhere to go but inside my house.

Action items: Check your flood zone to see where you fall. Reach out to your insurance provider and other insurance providers to get a quote.

Umbrella coverage

This is extra, but inexpensive, coverage above and beyond your home and auto insurance. It’s essentially another way to protect your monetary assets should your auto and home limits ever not be enough coverage.

Should you have a liability claim filed against you, umbrella coverage can help cover the potential judgment payments. Depending on the policy it can also help cover legal defense fees, slander, and false arrest.

Action items: Contact insurance agents for quotes for umbrella coverage. Start with the agencies you use for your homeowners and auto policies. 

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Catastrophic/earthquake/sinkhole

Depending on which part of the country you live in, you may want to consider insurance for natural disasters.

I live in Florida, the land of sinkholes. So you can bet your buttons that I made sure I have the proper coverage in place should my house get swallowed by a sinkhole.

Action items: Look at your local government maps to see if your area is prone to certain types of disasters. Determine if your finances could cover the gaps should anything happen to your house and/or belongings. If not, talk to insurance providers to get a quote.