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Homeowners Insurance

All you need to know about homeowners insurance

Anyone who owns a home needs to have homeowners insurance. If you have a mortgage, such insurance is required by the lender. But even if you own your home outright, you should still have insurance to protect your large investment.

What is it?

Home insurance is a type of both property and casualty insurance. It provides coverage for damage to your home and its contents, and it also provides a certain level of personal liability insurance to cover you for accidents that occur on your property and, in some cases, elsewhere.

Who is it for?

Home insurance is for anyone who owns and lives in a home. If you own a home that you don’t live in, then you get a different kind of insurance to cover the structure. Likewise, if you live somewhere that you don’t own, you don’t need insurance to cover the home itself, just your own possessions.

How does it work?

Insurance for your home covers you for a number of named perils. Most policies cover wind and hail damage, damage from fire and some types of water damage. Home policies generally do not cover flood damage, and they have many other types of exclusions. Such policies also provide personal liability, covering you for incidents such as someone slipping and falling on ice on your property or your dog biting someone. When you experience an incident that’s covered in the policy, you make a claim with your insurer, and an adjuster will evaluate the claim, approve or deny it and recommend a payout.

Different types of coverage in existence

Homeowners insurance is pretty standard, although different policies can have different exclusions. You also can get a number of riders and endorsements on your policy to cover things that might not normally be covered, but those will cost extra.

Major benefits

The major benefit of insuring your home is that what is likely your main financial asset is protected against loss. It’s also a benefit to have the personal liability protection that comes with the insurance, because most people don’t carry a separate liability policy.