Home insurance, also commonly called homeowners insurance , is the type of property insurance that covers private homes. It is an insurance policy that offers financial protection against:
1. Loss or damage to the home or its contents.
2. Liability damages to other people or property that may happen within the territory described in the policy.
Homeowners insurance is required by the lender and may be included in the monthly mortgage payment.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowner’s responsibility.
