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Beyond Your Typical Policy: Does Your Home Need Additional Insurance?

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As a home buyer in North Carolina, your house is most likely the largest purchase you will ever make. This being the case, it makes sense that you will want to insure your home against damage and issues—and not just because your lender requires it. Having a good homeowners’ insurance policy can safeguard you against many of life’s mishaps, but does the typical policy have all the coverage you need? Read on to learn about types of insurance that you might need to protect your investment for the long term.

The Standard Policy
The standard homeowners’ insurance policy is the policy that every single homeowner should have, regardless of lender requirements.  A standard homeowners’ insurance policy protects your home investment against potential damages or issues that might happen due to storm damage, accidents and more. Just as important, this insurance covers the contents of your home in case of accidental damage or theft. However, what you may not be aware of is the personal liability coverage that comes in a standard insurance policy. Personal liability is what will protect you if a guest or visitor has an accident in your home or sustains an injury and goes beyond protecting your home to safeguarding all your financial assets.

Structure Insurance
Sometimes when you purchase a home you’re not just buying a house, but other surrounding structures as well. If your home has freestanding structures outside of the house itself, you may need structure insurance. This insurance can cover damage and personal liability for buildings on your property including sheds, gazebos, workshops and others. If you plan to have additional structures outside of your home, make sure you have the insurance you need to protect them.

Flood Insurance
Did you know that while a standard policy typically includes water and storm damage, it may not include flood coverage? Many homeowners don’t realize this until it is too late. If you are purchasing a home in a flood-prone area, are buying in a place that has historical flooding or are concerned about future changes to your area’s infrastructure that might increase your flood risk, you may want to invest in extra flood insurance. Water damage from floods can be extensive—and expensive—so it’s better to be safe than sorry.

Insurance for Older Homes
If you are buying an existing home that is more than 40 years old, it may be worthwhile to invest in a special insurance policy for older homes. Over time, building codes change and safety restrictions are tightened, so your older home may be built to a different set of codes and laws than exist now. While this might not cause problems today, codes are updated for a reason, and some of your home’s quirks might actually be hazards. Specialized insurance for older homes might help you cover these items. Even better, if your home has architectural character that you love, you can extend your coverage to extend to those elements, too when it comes to insurance to cover loss.

Understanding your needs and costs for homeowners’ insurance is an important part of your preparations to buy a home in North Carolina. The North Carolina Housing Finance Agency has resources that can help make buying a home easier and more affordable than ever. Learn all the ways the Agency can help make home ownership happen for you at