Being a homeowner comes with many responsibilities and it is a huge investment. Homeowners insurance is essential to not only protect the home, but also your finances. It not only protects a homeowner against losing their home or other property, but also helps to protect you from liability if someone is injured on your property.
If you own a residence, whether it is your vacation home or your primary home, homeowners insurance is a must to protect you in case of loss due to theft or fire. The premiums will vary, depending upon the value of your personal belongings, home, and other property held within the home or land. Policies are usually custom created depending upon the amount of these costs to replace the home and any property that is in them.
Since the insurance company only pays the amount listed on the policy at the time of its inception, you want to keep a listing up to date of contents of your home. An example is if you have a lot of jewelry or other valuables, you want to be sure that you include this in your insurance to make sure that your policy will cover the value.
Make sure that you understand what exactly is covered. The majority of the time, an insurance policy will protect from liability if someone is injured on your property, but it may not cover termite or flood damage. Depending upon your needs, it may be a financially sound decision to purchase additional insurance for some scenarios.
If you are the owner of your home and there is no mortgage or lien on the property, buying homeowners insurance is optional. When you owe money on your home, the mortgage company has first rights of the property, which is why they require home insurance to protect their investment.
Either way, homeowners insurance is a very smart choice to protect your biggest investment - your home.