On This Page
OverviewWhy you need homeowners insuranceList of protections
omeowners insurance is a type of property insurance that covers losses and damages to an individual's house and to assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property. It is designed to protect homeowners from financial losses caused by damage to their homes or from liabilities arising from accidents on their property.  Mortgage lenders require borrowers to have homeowners insurance as a condition of obtaining a mortgage.

Why you might need homeowners insurance

There are several reasons why homeowners insurance is important.
  • It protects your home and personal property: Homeowners insurance covers damages to your home and personal belongings caused by things like fire, storms, and theft.
  • It provides liability protection: If someone is injured on your property, homeowners insurance can cover their medical expenses and any resulting lawsuits.
  • If you have a mortgage loan, it's mandatory: When you borrow money to buy your home, the lender is going to require you to have homeowners insurance until the loan is paid off.

Homeowners insurance is a financial safety net that can help protect you and your home from unexpected events such as:

Personal Property / Contents – Property Damage

When an unexpected event causes damage to your home, your personal property–furniture, appliances, clothing, electronics and other personal items–is also at risk. Most homeowners insurance policies include some level of personal property coverage. You should make sure any policy you take out has enough coverage for you.

Personal liability

In the unfortunate event that someone slips and falls while on your property, you and your family may be held liable for any injuries.All homeowners policies include some level of personal liability coverage to respond to incidents where injury or damage occurs to a third party where you may be considered negligent. It is not a bad idea, however, to speak with an agent about umbrella policies for added coverage.


Fires can be devastating. Remember, inflation rates on building materials and construction costs are separate from real estate values.As a result, rebuilding a home can often cost significantly more than expected.Make sure your homeowners policy has guaranteed replacement cost coverage. Also be sure that your insurance includes rebuilding your home to code.

Personal injury

Young people are usually very active online. However, using social media and other sites can increase the possibility of them directly or indirectly damaging someone’s reputation and exposing you, the parent, to a lawsuit.

Your homeowners insurance policy includes liability coverage for property damage caused by any member in the family, but it may not cover rumors or statements that damage a reputation. You need to add an endorsement to your policy to expand coverage to include liability protection that covers personal injury.

Medical expenses

In the event a person is injured on your property and requires medical attention, you may submit the injury-related medical expenses to your insurance carrier. Typically, medical expenses are paid without filing a liability claim against you.


An umbrella or excess liability policy increases your personal liability limits by adding protection over and above your current auto, boat, or homeowners policies-providing real financial value, as well as priceless peace of mind. Excess liability insurance is available either by an endorsement to your homeowners policy or available as separate coverage.

Flood coverage

Flood losses are becoming more common in places that are not normally prone to flood damage. And, since typical homeowners insurance policies do not include flood insurance, more people are left paying for the damages out of pocket. Purchasing a flood insurance policy protects your home and contents from flood losses as decided by the National Flood Insurance Program.

Additional living expense/loss of use

When there is substantial damage to your home due to unexpected events such as lightning, fire, or a storm, you may not be able to live in your home until it can be repaired or rebuilt. Be prepared with a homeowners insurance policy that provides added living expense or loss of use coverage.