Home Insurance

Homeowner Property Insurance

Your home is likely your most valuable possession.

If your home were damaged or destroyed, nothing could replace the special feeling that makes it home. But homeowner insurance (sometimes called mortgage insurance) can help you repair or rebuild your home and replace damaged possessions, so you can get on with life.

The main purpose of insurance is to protect you against losses you can’t afford. Most mortgage lenders require insurance, but even if you don’t have a mortgage, you need insurance. Few people have the financial resources to rebuild their homes.

This section explains the basic parts of a standard homeowners policy and how to read and understand your policy.
 

A homeowners insurance policy is a contract between you and the insurance company. In exchange for the premium you pay, the insurance company agrees to pay for losses to your home and property resulting from events that are covered by the policy.

Insurance is a way to pool the risks of many homeowners so that no one person has to bear the entire cost of a loss at a given time. Claims are paid from the combined premiums of all homeowners insured in the pool.

A Homeowners Insurance Policy Includes:

• coverage for the dwelling

• your personal property

• liability insurance to pay if you’re held legally responsible for the costs of someone else’s injury or property damage

You can also buy several types of additional insurance to cover property that isn’t covered by your homeowners policy or for perils not covered—such as flood—for which you need a separate policy. You do this by buying a separate policy, called a floater, or an addition to your policy called an endorsement or rider.

How To Get The Best Value For Your Insurance Dollar

• Buy enough of the right kind of insurance to protect your property.

• Keep a record of your insured possessions so you have accurate information to document your losses.

• Shop around and compare policies and premiums before you buy.

• Read your policy and understand exactly what coverage is provided.