Five Things to Know About Homeowner’s Insurance

Want a little insight to your hard-to-understand homeowner's insurance? Here are five things to know about your homeowner’s insurance from CNNmoney.com.

Why Do I Need Homeowner’s Insurance?

Your home is your single most valuable possession and your biggest investment. Homeowner’s insurance protects that investment as well as you, your family members and your household possessions.

Homeowner’s insurance is protection against the uncertainties of day-to-day living. If you were to lose your home in a fire or a hurricane or have the contents of your home damaged or stolen, the average person could not afford to replace everything all at once. If your neighbor sued you for an injury that took place on your lawn, the cost of defending a lawsuit could run thousands of dollars in legal expenses.

All of these situations are covered by homeowner’s insurance. While it may be unpleasant to think about these uncertainties, unfortunately these events can and do happen.

Another key reason to buy homeowner’s insurance is that lenders require it. No lender will lend you a large amount of money on your home purchase without proper homeowner’s insurance in place to protect that investment.