What is Home Insurance?
Home insurance, also known as homeowner’s insurance, is a type of property insurance that covers losses and damages to an individual’s house and assets in the home. It also provides liability coverage against accidents in the home or on the property. Home insurance is generally divided into two main sections: property protection and liability protection.
Why Home Insurance is Important
1. Financial Protection: Home insurance protects your home and personal property from unexpected events such as fires, theft, vandalism, and natural disasters. Without insurance, you would have to cover these costs out of pocket, which can be financially devastating.
2. Mortgage Requirement: Most mortgage lenders require borrowers to have home insurance as a condition of the loan. This ensures that the lender’s investment is protected in the event of damage or loss.
3. Liability Coverage: Home insurance provides liability coverage if someone is injured on your property or if you accidentally cause damage to someone else’s property. This can include medical expenses, legal fees, and settlement costs.