What is homeowners insurance?

Homeowners insurance is a type of property insurance that provides protection from loss and damage to a policyholder’s private residence. It also covers furnishings and other belongings within the property. Policyholders are able to bring claims for incidents including exterior damage, interior damage, and loss or damage to contents, as well as coverage for any injuries that occur on the property. Proof of homeowners insurance is usually required when applying for a mortgage, and most lenders will not disburse any funds until a policy is obtained.

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When do I need to be aware of homeowners insurance?

In general, you need to be aware of homeowners insurance when you make a purchase of a home. This coverage can protect your investment from happenstance, including certain natural disasters or accidents. It’s recommended that you secure the best policy for your needs prior to closing on the property so that you’re protected as soon as you move into your new home.

What is important to know about homeowners insurance?

Consult with your insurance provider regarding the specifics of your coverage. Here are a few important points to consider as you select the right policy for your property:

Typically, homeowners insurance policies are “package policies,” extending beyond the house and household items to cover liability for injury and property damage to others that may be caused by any member of the household, including your pets.
There are sometimes exceptions to the incidents that are covered by homeowners insurance; separate types of disaster coverage include flood insurance and earthquake insurance, which may be wise to have depending on where you live.
Poor home maintenance often increases the severity of accidents or natural disasters, so the homeowner is typically responsible for maintenance-related problems that may arise, including rodent and insect damage, rot, mold, and general wear and tear.