Understanding homeowner insurance

A home is usually the largest purchase you will make. Protecting this major investment can be important to your family’s financial future.

If you have a mortgage, your lender will require you to have homeowner insurance. If you don’t have a mortgage, it’s a good idea to protect your investment and buy homeowner insurance.

What it covers

Homeowner insurance pays for damage to your home and other structures on your property. It also may cover:

  • Damage to or loss to contents of your home
  • Your liability for accidents that occur on your property or for damage to others’ property.

What it doesn't cover 

  • Floods: You can buy flood insurance through the National Flood Insurance Program. You must buy through agent. You can get a referral here at 888-379-9531 (toll-free).

  • Earthquakes: You can buy earthquake as a separate endorsement to your homeowner or renter policy or as a stand-alone policy that is separate from your homeowner policy.

  • Landslides (earth movement) are not covered. This type of coverage may be difficult to obtain. Talk to an agent.

Renter insurance

Renter insurance covers your belongings and personal liability in the same way that a homeowner policy does. Since the building isn't covered, the premium is low.

Typically, the owner’s policy that covers the building you live in does NOT offer any protection for your property, your cost to find other housing, or your personal liability.

If you rent an apartment or a home, your lease will not always require you to have renter insurance. Without it, however, you are often left out in the cold if the building is damaged. Renter insurance will also cover you if someone is injured in your home or elsewhere due to your negligence.




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