Buying homeowners insurance is one of the most essential parts of buying a new home, writes Michele Lerner for The Washington Post.

A lender may require that residents have enough insurance to ensure that their mortgages are paid off, even if their homes experience widespread damage that results in a declared total loss.

“An agent can work with you to figure out your replacement cost based on the size of your home, the location, and the materials used,” said Craig Eagleson, president and chief revenue officer of Fort Washington-based Incenter Insurance Solutions.

He added that it is a good idea to add 10–20 percent of coverage to the estimated amount as a buffer against inflation.

In addition, Eagleson advises for the purchase of flood insurance, even if a property is not in a particularly dangerous locale for being swamped.

“Flood insurance is inexpensive if you’re not in a flood zone, and we’ve seen some surprising damage on homes that are not in one,” he said.

He also recommends adding a water-backup policy to provide protection if a sewage line or some other pipe backs up and causes damage to your home.

Read more advice from Craig Eagleson in The Washington Post.

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How, exactly, does homeowners insurance work?