Homeowners Insurance Basics

When you purchase a home, you want it to last. Homeowners insurance is the best way to protect your investment.

What Does a Home Insurance Policy Cover?

There are several types of policies you can buy, depending on your dwelling. These things are usually covered.


Policies typically cover rebuilding or replacing your home if it is destroyed by fire, for instance. Attached buildings, such as a garage, are also considered dwellings. Detached structures, like a fence, are covered as “other structures.”

Personal Property

This coverage is for things like furniture or clothing. The insurance is usually about 50% of the amount covered for the dwelling.

Liability and Medical Costs

If someone is injured or brings a lawsuit against your property, your insurance will protect you and pay any costs involved. This includes medical payments and legal fees.

Loss of Use

If your home is unlivable, your insurance will help. Most policies cover temporary residence costs.

Do You Need Home Insurance?

Most mortgage lenders require you to buy insurance for your home. A portion of your house payment is placed into escrow and paid directly to the insurance agency.

Your home is a significant investment, so it makes sense you want to protect it. Buying homeowners insurance will provide that protection.