Things that you need to consider with your homeowner's policy include expanded replacement cost for the dwelling. This allows for the insurance company to go above the limit shown on the policy. Typically, you are looking at 20% - 25% higher than your dwelling limits. Most insurance companies include this on the policy, but check to make sure. Ask about "guaranteed" or "expanded" replacement.
Be sure your liability limits exceed what your home is worth.
Also, make sure that your contents are insured for replacement cost LESS depreciation... meaning that if you have a 1999 TV set that burns in a fire, that the insurance policy is written so that you will be reimbursed for a 2009 TV.
Flood insurance is only necessary if you are on a flood plain. FEMA normally wont take on something that isn't on a flood plain.
For instance, Windstorm is vital and usually you'll need a 2% deductible, but you can get a $500/$1000 deductible for a higher rate.
You may also need flood insurance...
all these will be determined by the Lender...
Otherwise call a good insurance agent and ask them what they recommend... I use Jessica @ the Atlantic Agency in Delray Beach - 561-638-0030
The Home Insurance Specialists