As a homeowner, it’s essential to have the right insurance policies in place to protect your home and finances in case of unexpected events.

Whether it’s natural disasters, accidents, or other unforeseen circumstances, having the right insurance can relieve the stress of wondering how you will manage the financial impact an unexpected event can bring. But with so many insurance options available, it can be overwhelming to know which policies you should prioritize.

From flood insurance to life insurance, read on to learn about the insurance policies every homeowner needs and everything you need to know to make informed decisions about your insurance needs.

What Do Home Insurance Policies Cover?

Basic home insurance policies already provide you with a decent amount of coverage in the event of an accident or damage to your home and personal belongings.

The core component is dwelling coverage or damage to your home’s structure caused by a fire, a storm, theft, or vandalism. This also extends to standalone structures on your property like your fence or a shed.

Your personal belongings—clothing, books, appliances, electronics, and more—are also covered to a certain extent (for more on that, keep reading!). You also have a certain amount of coverage in case a guest is injured in your home, or if your home is deemed unlivable for a certain period of time, your homeowners insurance can help cover the cost of staying at a hotel.

So while your home insurance already protects you and your home in a lot of instances, there are still some gaps in coverage all homeowners should be aware of.

Flood Insurance

Flood insurance policies provide financial protection in case of flood damage to your home or property due to a natural disaster. Flood insurance can help cover the cost of repairs and save you from unexpected financial burdens.

While some homeowners believe that their standard home insurance covers flooding, this isn’t the case when it comes to natural disasters. Standard home insurance policies will cover water damage caused by a burst water heater or a leak in your roof, but not a hurricane or major storm. Flood insurance, on the other hand, provides coverage for flood-related damage, like damage caused by mudslides, flash floods, and heavy rain.

Living in Florida, flood insurance policies are a constant topic of conversation. After all, just one inch of flood waters can cost thousands of dollars in damage.

If you live in a high-risk flood zone, your mortgage lender may require you to have flood insurance. Some insurance carriers offer a flood endorsement as part of their home insurance policies, though this is uncommon. But that doesn’t mean you’re out of options.

Homeowners can purchase a flood insurance policy through the National Flood Insurance Program or through private carriers. Private carriers will have broader coverage, higher limits, and maybe higher premiums, but in the end, you can find the right policy for your home.

Even if it’s not required, it’s still a good idea to have a flood insurance policy in place to protect your home and finances. Flood insurance may not be as expensive as you think if you aren’t in a high-risk flood zone, and in the end, it’s highly unlikely that the cost of the insurance will be more than the cost of the damage.

Liability Insurance and Umbrella Insurance

Liability insurance protects you from legal and financial responsibility in case someone is injured on your property. This coverage can help cover medical expenses, legal fees, and other costs associated with an injury on your property. Liability coverage is usually included on your homeowners policy in limits of: $100,000, $300,000 or $500,000.

However, sometimes those limits of liability insurance may not be enough. That’s where umbrella insurance comes in, providing additional liability coverage beyond what is provided by your underlying home and auto policies. An umbrella policy is an excellent choice for homeowners with significant assets to protect like jewelry and artwork and specialty electronics (like a fancy, state-of-the-art home theater system).

Umbrella insurance is a type of liability insurance that provides higher limits of liability coverage, usually starting at $1 million. An umbrella policy can provide additional coverage for situations where your primary policy may fall short, giving you peace of mind that you’re fully protected.

You may also need enhanced liability insurance if your home has a pool or trampoline or certain dog breeds. Always talk to your insurance agent when adding new policies or increasing your limits.

Life Insurance

Many people overlook life insurance policies, but it’s a very useful policy, especially for homeowners.

Life insurance is a contract between you and an insurance company. If something were to happen to you, life insurance can help your loved ones pay off your mortgage so they can stay in your family’s home.

While the death benefit can be used for any purpose, homeowners need to consider the importance of having a financial plan for their family should they pass. This includes paying off your mortgage or other debts.

The amount of life insurance you need will depend on various factors, including your mortgage balance, income, and other debts. A financial advisor or insurance agent can help you determine the right amount of coverage for your needs.

Having life insurance can provide peace of mind knowing that your family will have a roof over their heads even if you’re no longer around. It can be a significant help in a difficult time, taking care of the financial burden of a mortgage payment while your loved ones grieve.

The younger you are when you purchase a life insurance policy, the more affordable it will be, so if you have people who depend on your income to keep the roof over their head, a life insurance policy is a good idea.

Get the Right Home Insurance Policies For Your Family

Having the right home insurance policies in place is essential for homeowners to protect themselves and their homes. While additional insurance policies may be an additional expense, they provide a layer of protection that can save you from significant financial burdens.

It’s important to review your home insurance policies, understand what’s covered and what’s not, and make sure you have the coverage you need to protect your home and finances from unexpected events.

Our team at Brown Insurance Services is here to help! Our agents will help you determine what policies are right for you and how to fit them into your budget.

Don’t wait until it’s too late. Contact us today and let us help you protect your home and finances with the right insurance policies.