Insurance might not be the most exciting part of homeownership, but it's one of the most important layers of financial protection you can put in place.
Here's a quick breakdown of the main types of real estate insurance and when each one applies.
Homeowner's Insurance
The foundation of protecting your property. If you own a home, this policy covers the structure itself as well as the personal belongings inside. Most mortgage lenders require a minimum level of homeowner's coverage as a condition of the loan — but even if you owned your home free and clear, skipping it would be a serious financial risk.
Renter's Insurance
If you're leasing, the building itself is the landlord's responsibility — but your furniture, electronics, clothing, and other possessions are not covered under their policy. Renter's insurance fills that gap. It's typically affordable and many landlords now require it before you move in.
Landlord's Insurance
Owning a rental property is different from owning your primary residence. Landlord policies are designed for that situation — they typically cover damage to the structure and often include liability protection if someone is injured on the property. Standard homeowner's insurance generally won't cover a home you're renting out to others.
Umbrella Policy
An umbrella policy layers additional liability coverage on top of your existing policies. It becomes more relevant as your real estate holdings grow, providing broader protection against large claims that might exceed the limits of a standard policy.
Flood Insurance
This one surprises a lot of homeowners: flooding is almost never covered by a standard homeowner's policy. Flood insurance is issued separately through the National Flood Insurance Program (administered by FEMA), and your premium depends on your property's flood zone designation, elevation, and structure. If you're buying in a designated flood zone, your lender will likely require it — but flood risk exists outside of official flood zones too.
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Insurance decisions often come up during the homebuying process. If you have questions about what to expect at closing or how coverage fits into your overall costs, reach out to our team — we're happy to help you think it through.
