Going from renting from buying can be difficult enough without having to worry about insurance. When you make a major purchase, you should always insure it, even for things that may not happen often.

Types of Insurance

PMI - For those people who do not put 20% down on their home, you will automatically get PMI. This is Private Mortgage Insurance which protects the lender if you default on the loan.

Homeowners - This cover just about anything that  can happen to or in your property. This type of policy covers the valuable in your home from fire, theft, and often wind and hail.  The insurance also covers injuries and accidents that happen on your property if you were to be sued.  If you keep valuables in your home - like jewelry - this is where you would cover those items.  The best type of insurance policy to carry will replace all your items at what you purchased them for, not the depreciated value.

Flood Insurance - This goes above and beyond homeowners. This policy covers you from water that rises, not from rain damage. With all the recent flooding, even those people who think they are safe from major flooding should purchase this policy. If you live in an area that has never flooded, this is a cheap policy to carry.