Homeowners Insurance Policy
Homeowners insurance is a smart investment for anyone who owns a home. A mortgage lender might even require a homeowner to maintain a policy for the duration of the loan. If that’s the case, then the lender typically will have minimum coverage requirements. This coverage will pay for most or all of the cost to repair or rebuild the home if necessary. The policy might exclude some events, and others only include coverage for specific items. This is why it’s important to understand what’s included in your policy.
You might want to purchase a homeowners insurance policy that has a personal property component. Personal property coverage provides reimbursement for furniture, appliances and other items in the home that are damaged, destroyed or stolen. Some policies also include a liability component that pays for court costs and related expenses if someone is injured on the property. Some policies also pay living expenses if the homeowner is displaced because of property damage.
If you are a homeowner or soon will be, then learn more about the lender’s insurance requirements. From there, work with your insurance agent to decide if you will benefit from additional or optional coverage. In any case, make sure you have coverage in order to protect your investment.