Financial Peace of Mind Starts at Home: A Guide to Insurance Coverage
When we talk about financial peace of mind, insurance doesn’t always come to mind—until a storm hits.
The recent flooding from Tropical Storm Chantal in Chapel Hill, NC (where our headquarters is located) was a tough reminder: the right insurance coverage isn’t just a box to check, it's a key part of protecting everything you've worked so hard to build.
Whether you're retired and enjoying the next chapter of life or still working toward your financial goals, understanding what your homeowners or renters’ insurance actually covers can make all the difference when the unexpected happens.
Understanding the Basics: What Does Homeowners Insurance Actually Cover?
Homeowners insurance is typically divided into two main sections:
- Section I: Property Coverage
- Section II: Liability Coverage
Here’s a quick breakdown of what that means—and why it matters.
Section I – Coverage for Your Home and Belongings:
Coverage A: Dwelling
This is your home’s primary structure—walls, roof, and attached garage. It doesn't include the land itself.
Coverage B: Other Structures
This covers structures that are not attached to your home, like swimming pools, detached garages, patios, detached living spaces, etc.
Coverage C: Personal Property
Your belongings are protected—even if you’re traveling. But there are limits: items like jewelry, fine art, or collectibles often require separate coverage (a “schedule”) to be fully insured.
Tip: If you’ve recently acquired new valuables – antiques, artwork, new jewelry – it may be time to revisit this section of your policy
Coverage D: Loss of Use
If your home becomes unlivable after a fire or storm, this helps pay for temporary living expenses like hotel stays or eating out. This coverage often gets overlooked—until it's needed most.
Section II – Liability Protection:
Coverage E: Personal Liability
If someone slips on your front step and gets injured, this protects you from potentially expensive legal claims. It’s about shielding your assets from unforeseen accidents.
Section F: Medical Payments
This covers medical bills for guests injured on your property—without needing to prove fault.
What About Umbrella Liability Insurance?
Umbrella insurance acts as an extra layer of protection that kicks in when your homeowners or auto coverage reaches its limit. It’s especially valuable for those with significant assets—or anyone wanting peace of mind knowing they won’t be financially devastated by a large lawsuit.
A Word on Flood Insurance (Yes, Even Outside Flood Zones)
An unfortunate fact: most homeowners' policies do not cover flood damage.
Many Chapel Hill, NC residents impacted by Tropical Storm Chantal didn’t have flood insurance because they lived outside FEMA’s designated high-risk zones.
If you haven’t reviewed your flood risk or looked into supplemental coverage, now is the time.
How We Can Help at Woodward Financial Advisors
As part of your ongoing financial plan, we regularly review your insurance coverage—homeowners, auto, umbrella—to make sure it aligns with your current needs, goals, and lifestyle.
We’ll help you:
- Identify gaps in your coverage
- Evaluate whether your policy limits still make sense
- Spot opportunities to reduce unnecessary costs
Because insurance isn’t just about paperwork—it’s about protecting your peace of mind.
Not sure what your current coverage includes? Need a second opinion on your policies?
We’re here to help. Reach out to your team at Woodward Financial Advisors, and let’s make sure your financial foundation is built to weather any storm.