What is Homeowners Insurance?

Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.

Homeowners insurance is a package policy. That is, it covers both damage to your property as well as your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. Including damage caused by household pets.

Damage caused by most disasters is covered but there are exceptions, which should be clearly outlined in your policy. The most significant are damage caused by floods, earthquakes and poor maintenance. For flood and earthquake coverage you must buy two separate policies. As for any maintenance-related problems they are the homeowners' responsibility.

Unlike driving a car, you can legally own a home without homeowners insurance. However, if you have bought your home and financed the purchase with a mortgage, your lender will require you to get homeowners insurance coverage.

If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require earthquake coverage if you live in a region vulnerable to earthquakes. If you buy a co-op or condominium, your board will probably require you to buy homeowners insurance.

After your mortgage is paid off, you are no longer obligated to carry homeowners insurance. However if you choose not to carry homeowner’s insurance your home which is most likely your largest investment is vulnerable.

How can I receive a home owners or renters policy quote online?
You can get a free homeowners and renter quote online at Inspolicy.com.