The basics: Home insurance or homeowners insurance is an insurance carrier backed policy that provides protection for a policyholder and other 'insureds' - as defined within the policy - in instances where the dwelling and or the personal belongings (contents) are negatively affected by the occurrence of an unforeseen, covered peril, such as fire, explosion, theft, etc.
Additionally, homeowners insurance protects the policyholder and other 'insureds' in the event they are held liable for damages to others. This can be for injury or property.
Great question! In simple terms, the purpose of any kind of insurance is to protect you or others, from financial hardship as a result of a loss. In life insurance, that loss is obviously a death; in health insurance, your health. Homeowners insurance is designed to protect you, your mortgage company, and your family from expenses that arise from the loss or damage to your home. Like the insurances mentioned above, it is essential to have to protect your financial stability. If you would like more help, please feel free to contact me. Thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
A homeowner’s policy has two major sections. There is coverage for your property. This includes the residence and the personal property (furniture, clothing, appliances etc.) located at the property. The second section is liability. It covers you if you are sued for bodily injury or property damage. This type of hazard insurance is required by most lenders to protect their interests. Because the amounts at risk are so large it is recommended for everyone.
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Additionally, homeowners insurance protects the policyholder and other 'insureds' in the event they are held liable for damages to others. This can be for injury or property.