|What is Homeowners Insurance?
Homeowners insurance provides financial protection
against disasters. A standard policy insures the home itself and the
things you keep in it.
Homeowners insurance is a package policy. That is,
it covers both damage to your property as well as your liability or
legal responsibility for any injuries and property damage you or members
of your family cause to other people. Including damage caused by household
Damage caused by most disasters is covered but there
are exceptions, which should be clearly outlined in your policy. The
most significant are damage caused by floods, earthquakes and poor
maintenance. For flood and earthquake coverage you must buy two separate
policies. As for any maintenance-related problems they are the homeowners'
responsibility. Do I have to have homeowners insurance?
Unlike driving a car, you can legally own a home
without homeowners insurance. However, if you have bought your home
and financed the purchase with a mortgage, your lender will require
you to get homeowners insurance coverage.
If you live in an area that is likely to flood,
the bank will also require you to purchase flood insurance. Some financial
institutions may also require earthquake coverage if you live in a
region vulnerable to earthquakes. If you buy a co-op or condominium,
your board will probably require you to buy homeowners insurance.
After your mortgage is paid off, you are no longer
obligated to carry homeowners insurance. However if you choose not
to carry homeowner’s insurance your home which is most likely
your largest investment is vulnerable.
How can I receive a home owners or renters policy
You can get a free homeowners
and renter quote online at Inspolicy.com.