Protect Your Home and Belongings
Once you purchase a home, you want to know it is protected. Homeowners insurance, also known as hazard insurance, is a type of property insurance that covers private residences. This multi-line coverage provides both property and liability protection.
Coverage for Property Losses
Homeowners insurance protects against designated property losses. Policies vary, but most cover damage to your home, its contents, and certain personal possessions. Some policies also provide protection if your home becomes temporarily uninhabitable. Renters should obtain a separate renters insurance policy to cover losses to their personal belongings in a rented space.
Coverage for Liability
Homeowners insurance also offers liability protection. It can help cover accidents that occur on your property or other events specified in the policy. A single premium typically includes both property and liability coverage, giving you comprehensive protection.
Homeowners Insurance vs. Dwelling Insurance
Cost of Homeowners Insurance
The cost of homeowners insurance depends on several factors, including the replacement cost of the home and any additional items insured through policy riders. Some claims, such as floods, explosions, or termite damage, may be excluded. Specialized coverage can be purchased to include these risks, which can increase the policy cost. Most mortgage lenders require homeowners to carry insurance as a condition of the loan.