What is Homeowners Insurance?
Homeowners insurance is a property insurance policy that covers damage to your home and belongings and provides liability protection against certain accidents.
Homeowners insurance protects against covered perils such as fire, theft, and certain natural disasters, and includes liability coverage for injuries or property damage caused to others. Lenders require proof of insurance before closing to protect their collateral. Borrowers encounter it when shopping for a home and must maintain coverage throughout the loan term. Watch for policy limits, deductibles, exclusions like floods or earthquakes, and whether replacement cost or actual cash value is used. In some areas, separate flood or wind policies may be required. Compare quotes and consider an escrow account for premium payments.
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