Do I need homeowners insurance?

More than likely, your home is the largest investment you will ever make, which makes homeowners insurance one of the most important types of policies available.  Finding and obtaining the right homeowners insurance coverage is important. The fact is, you have numerous choices when deciding exactly how to protect your home.

Hazard Insurance

The main reason people get homeowners insurance is for hazard protection, which covers the home and everything in it from things like weather damage, fire and theft.  Hazard can cover cash value, which is how much something is worth, or it can cover replacement value, which is the cost of replacing what was lost.

Liability

If you have people over to your house, sometimes even if they weren’t invited, Liability covers any accidents that might happen to them.  If your friend falls down your front steps and breaks an arm, for example, liability covers medical expenses up to the policy limit.

Required for Mortgage

All else aside, you need homeowners insurance because your mortgage company requires it.  Your home is your lender’s collateral, and they want to make sure your house is taken care of.

Some people grumble about having to buy homeowners insurance, but everyone who has it is thankful when they end up needing to use it.

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