Homeowner's insurance is required by every mortgage lender, but that doesn't mean your coverage needs to be the same as every other homeowner. Standard insurance coverage typically includes structure or dwelling coverage, personal property, liability, and also alternative living expenses if you're living elsewhere while your home is being repaired or rebuilt.
But there are other options that can offer extra protection. Here are four home insurance options that provide extra coverage that you should seriously consider, especially if you live in areas prone to flooding, earthquakes, or landslides.
Flood Insurance
Before settling on a homeowner's insurance policy, you should do a little research about the location of your home because most homeowner's policies don't include flood insurance. It's up to you to find out how close your home is to a known flood zone and the history of flooding in that area. Fortunately, there are several online resources available to help you figure out this information, including a government-sponsored online community flood map to help you locate your home and determine the risks, especially as climate-related flooding risks increase. If you choose to purchase flood insurance on top of your regular policy, you can expect to pay around $859 per year for the coverage. The cost varies depending on various factors so be sure to get a specialized quote for your property.
Earthquake Insurance
Much like flood insurance, insurance that covers damage caused by an earthquake is extra on top of most standard policies. If you live in earthquake-prone areas like California or Washington state, this is an especially important option. It can be difficult to pinpoint where flooding is the most prone to happen, but you can research earthquake damage history and scientific projections for future seismological activity. Earthquake insurance covers the cost to replace any damage classified as pure loss.
Landslide Insurance
Like flood and earthquake insurance, landslide insurance covers another potential natural disaster not typically covered in standard homeowner's insurance policies. If you live in a hilly area that has experienced landslides in nearby regions during periods of heavy rainfall, it is coverage worth considering to protect your investment.
Extra Personal Property Coverage
Though most standard homeowner's insurance covers some personal property averaging a few thousand dollars, you may want to consider getting extra coverage if you have valuable or irreplaceable items in your home or on your property. You may also want to consider extra coverage if inflation has raised the replacement price of your current items past their existing value.
Contact an insurance service such as Del Toro Insurance for more information.
Share23 February 2023
Like many new homeowners, when my husband and I purchased our first home, we were on a tight budget. We knew we needed a good home insurance policy, but we had a difficult time finding one that provided the coverage we needed in our flood prone area of the country at a price we could afford. We spoke to many insurance agents and finally found one that covered everything we needed at a reasonable price. We learned a lot about home insurance along the way, and we are eager to share what we have learned with other new homeowners who need the advice! We plan to post new home insurance tips and news often, so come back soon!