Homeowners’ and Renter’s Insurance

Your home and your belongings are probably your largest financial asset.  So how do you protect them?

If you own a home and have a mortgage (loan that you are paying off to own the home outright), then your lender will require that you carry home insurance.  That’s because the lender technically owns the home while you are paying the loan off and lenders want to protect their investment from potential loss due to damage or destruction.  Even if you don’t have a mortgage and you own your home outright, insuring your home is a smart choice to protect your largest asset (your home), your personal belongings, and yourself as a homeowner.   For example, homeowners insurance offers protection if someone is injured while they are in or on your property.

As with any financial commitment, it’s important to take your time, do your homework and ask the questions to get the information you need.  This section provides an overview on what homeowners insurance is and how to shop around for the policy that you need.

First, let’s look at what a standard homeowners policy insures.