Homeowners insurance gives you coverage in the event of a tornado, hail storm, and fire, and the most recommended coverage to have is a replacement plan. The plan covers the structure and the contents in your home, but in the event of a flood, you would have to purchase separate coverage.
Once you buy insurance, it can take up to 30 days for the insurance to kick in. You can't file a claim for anything until it's effective.
"When people shop, purely based upon price, and that's the only thing that they're concerned about, quite often they're not getting what they think they're getting in terms of insurance," said Rod Lizak of State Farm Insurance.
It's recommended to also have a comprehensive plan if you own a vehicle and if you're a renter. You'll also want to make sure you have pictures and documentation to show what you own.