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Homeowners Insurance

Facts about Homeowners Insurance

Anyone who owns a home should have homeowners insurance. It is the number one way to protect your investment in your home. But not all coverage is the same. Before you purchase a policy it is important to understand how it works and what it covers. Otherwise you might not get the best coverage available.

This coverage is a type of insurance known as property or casualty insurance. It covers your home against a number of mishaps, including fire damage and theft. Liability insurance is included as well, and it covers you against incidents such as your dog biting a visitor or someone getting injured while on the property.

Who Needs Coverage?

In short, anyone who owns a home and lives in it needs this type of policy. It really is a smart move. However, if you rent a home, then this coverage is not for you. The person who owns the home would be responsible for having this coverage.

How it Works

The policy provides financial assistance to you should you experience a covered peril. A covered peril is anything defined in the policy. If your home is damaged by fire or some other covered event, you must make a claim with your insurance company. Depending on the specifics of the policy, your insurer might give you a check for the cost of the damage minus the deductible. Or you might have to get estimates and submit them to the insurance company.

Types of Coverage

Most of these policies offer standard coverage. They cover certain types of damage, such as wind, hail and fire, and exclude damage from things like floods and earthquakes. If you want additional coverage, then you will have to get any extras added as riders. For instance, you can get earthquake coverage as an add-on.


The main benefit of homeowners insurance is financial coverage for your home. You will receive financial assistance should your home be damaged or destroyed. An additional benefit is the personal liability coverage it provides.