What is Homeowner’s Insurance?

One of the largest and most valuable assets that you will ever own is a home. To ensure that your home is covered in the event of a disaster or catastrophe — and because your lender will require it — you’ll most likely purchase a homeowner’s insurance policy, which can provide you (and your lender) with several different types of insurance coverage.

The first type of coverage that the insurance policy will provide is property damage coverage. All homes have the risk of being damaged by fire, natural disasters, and other issues. When you get a homeowners policy, you will normally get a level of property damage coverage that is equal up to the amount of the purchase price.

When you are getting an insurance policy, you will also receive insurance for your personal belongings. If your home is robbed, you will receive payment for your personal items that are taken. In most cases, very valuable items, such as jewelry and expensive art, will require an additional rider to the policy.

Those that get insurance will also receive liability insurance coverage. Liability insurance will provide you with protection in the event that someone is injured while they are in your home. If you are sued and are held financially liable, the insurance policy will provide you with the financial protection you need.