Buying a home is a major milestone and a major investment. One of the best ways to protect that investment is through homeowners insurance. But what exactly is it, and why is it so important?

What is Homeowners Insurance?
Homeowners insurance is a type of property insurance that covers losses and damages to your home and assets in the event of certain disasters or accidents. It also provides liability protection in case someone is injured on your property.

Most policies include four key types of coverage:

Dwelling coverage – Pays for repairs or rebuilding your home if it’s damaged by covered perils like fire, windstorms, or vandalism.

Personal property coverage – Protects belongings inside the home, such as furniture, electronics, and clothing.

Liability protection – Covers legal expenses and damages if someone is injured on your property and you’re found legally responsible.

Additional living expenses (ALE) Covers costs like hotel stays or meals if your home is temporarily uninhabitable.

Why Do You Need It?
Lender Requirement: If you’re financing your home, your lender will almost always require proof of insurance.

Financial Protection: Insurance provides peace of mind that you won’t face devastating costs after a disaster.

Legal Protection: Accidents happen. Liability coverage can protect you from costly lawsuits.

What It Doesn’t Cover
Standard homeowners insurance typically does not cover:

Flood damage

Earthquakes

Normal wear and tear

Mold, pests, or neglect

You may need to purchase separate policies or endorsements for these.

Final Thoughts
Homeowners insurance isn’t just a formality it’s a vital part of responsible homeownership. Make sure your coverage meets your needs and update it regularly as your home or possessions change.