Homeowners insurance is necessary to protect your property and family from unexpected events. While many people understand why these policies are necessary, they are sometimes surprised to learn that there are multiple policy types. The most basic level of coverage protects a primary dwelling and is designed to cover the cost of repairs or replacement from damage. Below, the insurance specialists at Arlene Lear Insurance, located in Bolivar and Humansville, MO, explain a few other forms of coverage that will protect your investment.

5 Important Types of Homeowners Insurance Coverage

1. Personal Possessions Coverage

A basic homeowners insurance plan is designed to protect the house, but personal possessions coverage keeps items like clothing and furniture safe. Most standard policies include some level of personal possession coverage, but you may want to increase the level of protection to ensure that expensive belongings like electronics and jewelry are covered.

2. Liability Coverage

As with auto insurance, liability coverage protects homeowners from potential lawsuits if a guest is injured on their property. If an incident occurs on your property and results in an injury or damages another person’s belongings, it is your responsibility to provide compensation. Liability insurance covers the associated costs like medical bills, so you don’t have to pay them out of pocket. Purchasing a separate umbrella liability policy extends this financial protection even further.

3. Other Structure Insurance

Homeowners insurance can also protect freestanding structures that aren't part of your main dwelling, such as a shed or workshop. These buildings aren't usually included in a basic plan, but adding supplemental coverage to your current policy helps you avoid separate deductibles.

4. Flood Insurance

While fire and tornadoes are typically covered, most basic homeowners insurance policies don't extend their protection to many water-related issues. Since Southwest Missouri is prone to occasional flooding, purchasing a separate flood insurance policy is the best way to protect your home. Flood plans sometimes extend to other issues like burst pipes, but you may also need a rider or separate plan that covers incidents like sewer backups.  

5. Ordinance Insurance

Ordinance insurance is one of the least familiar policies, but it's extremely beneficial to those whose homes are over 30 years old and may not be compliant with current building codes. If a disaster occurs, and the house has to be completely reconstructed, ordinance coverage will handle the costs of bringing the new structure up to code.

There are multiple homeowners insurance options on the market to provide the right protection for your situation. The agents at Arlene Lear Insurance focus on their customers’ unique lifestyle and budget needs to help them find the most comprehensive coverage. Visit them online to learn about their auto insurance and life insurance options to keep you protected at all times. Request a free quote by calling (417) 777-3000 in Bolivar or (417) 754-8377 in Humansville.