What is homeowners insurance?
If you have a mortgage on your home, then you’ll have to have home insurance. Your mortgage lender requires it as a way to protect their interest in the property.
Homeowners insurance covers damage to your home’s structure in cases of peril deemed in your insurance policy. “Perils” include fire, lightning strikes, tornadoes, and hail.
If your home becomes uninhabitable due to the perils listed above—or similar disasters outside of your control—your homeowners insurance might also cover short-term housing costs.
Beyond structural damage, homeowners insurance also includes liability, or coverage provided to the homeowner if someone is injured on the property.
It will also replace your personal belongings in the event of disaster, theft, or vandalism.