Homeowners insurance is a type of insurance that provides financial protection for homeowners against unexpected events that may damage or destroy their homes or personal property. It is typically required by mortgage lenders to secure a loan to purchase a home.
A standard homeowners insurance policy typically includes several different types of coverage, such as:
Property coverage: Pays for damage to the policyholder’s home and personal property as a result of events such as fire, theft or natural disasters
Liability coverage: Pays for legal and medical expenses if someone is injured on the policyholder’s property or if the policyholder is held liable for damages caused by their actions
Loss of use coverage: Pays for additional living expenses if the policyholder’s home is uninhabitable due to a covered loss
Medical payments coverage: Pays for medical expenses for people injured on the policyholder’s property
Additional endorsements can be added to the policy for specific risks like floods, earthquakes or mold damage.
It’s important to note that homeowners’ insurance policies typically have exclusions, meaning that certain types of damage or loss are not covered. Policyholders should carefully review their policy to understand what is and is not covered, and consider purchasing additional coverage or endorsements if necessary.