Homeowners insurance is a type of insurance that covers the structure of your home and its contents in case of damage from natural disasters, accidents, theft and other events. Homeowners insurance also covers liability for personal injury or property damage caused by you or family members who live with you.
What it is
Homeowners insurance protects you financially if your home is damaged or destroyed by a covered peril. It also covers your belongings, and it can protect you from lawsuits if someone gets injured on your property.
Homeowners insurance typically includes the following features:
- Protection for the cost of rebuilding or repairing a house that’s been damaged by fire, wind, hail, explosions and other events covered under standard policies.
- Coverage for loss of use during repairs when the house is uninhabitable due to damage caused by a covered peril.
- Liability protection against claims of liability associated with bodily injury or property damage caused by you or other people living in your home (including family members).
How to buy it
When shopping for homeowners insurance, it’s important to look for a provider that offers competitive rates and has been around for a while. Some of the better-known insurers (see below) have been in business since the early 1900s. You should also check whether they have a good financial rating from a company such as A.M. Best or Standard & Poor’s Financial Services LLC, which can be found on most insurance company websites.
It’s also important to choose an insurer with good customer service records so that if you need help or have questions about your policy, you’ll have someone available who knows what they’re talking about when it comes time to file a claim—and make sure that person doesn’t just make vague promises on their website but actually follows through!
When you need it
If you own a home, have a mortgage and a family, have a pet or car, or have a pool in the backyard—you need homeowners insurance.
Homeowners insurance covers:
- Your house and its contents against damage from fire, lightning storms and other disasters (e.g., earthquakes).
- Medical expenses for anyone who is hurt on your property.
- The cost of repairing or rebuilding your home if it’s damaged by natural disasters such as fires or tornadoes.
You’ve probably seen the commercials that say “you can’t afford to be without it.” That’s because homeowners insurance covers your home and its contents, personal liability and additional living expenses.
The coverage kicks in when a disaster strikes. If you’re burglarized or if a fire destroys your home, the policy will pay for repairs or replacement of what was damaged. In some cases, you may also be reimbursed for other costs incurred as a result of the incident—for example, hotel bills while your house is being repaired.
The policy also provides liability protection in case someone gets hurt on your property (and they decide to sue). It also covers damage caused by floods and earthquakes—even if those incidents don’t happen at home!
Don’t be caught without this insurance.
Homeowners insurance is a necessity, but it’s also one of the most misunderstood forms of coverage. Homeowners insurance can protect you from liability, damage to your home and belongings, or even provide financial protection in case something happens to your family. Whether you’re buying a new home or already have one, having homeowners insurance is important for protecting your future.
Homeowners Insurance Is Required by Law
Homeowners insurance may seem like an unnecessary expense when compared to other types of insurance (like car or health), but homeowners are required by law to have it before they can close on their mortgage loan. The main reason why is because the lender wants assurance that in case something were to happen—such as fire or theft—the borrower would be able to cover any costs associated with replacing damaged property without putting themselves into debtors prison.
Homeowners insurance is a must for every homeowner. It helps protect both you and your property from financial loss due to events such as fire, theft or vandalism. Homeowners insurance should be purchased before you close on your new home so that it’s covered from the first day of ownership.