Homeowners insurance is a financial product that works to protect a homeowner from financial loss due to damage to a home. With all of the things that can possibly damage a home, every homeowner should have homeowners insurance to protect his or her investment. Though every homeowner should have insurance for his or her home, those with mortgages on the home are most likely required by the lender to carry insurance.

It is important for homeowners to understand that the types of coverage that a homeowners insurance policy will provide will vary from one company to another. However, most basic policies provide similar coverage. It is important for a homeowner to understand what a policy covers in order to determine when to make a claim and whether or not additional insurance coverage is needed.

Homeowners insurance policies provide protection to a house for losses due to fire, smoke, wind vandalism and similar occurrences. This coverage generally extends to other buildings on the property, such as a detached garage, as well as furniture and other items in the home. Homeowners insurance will generally help to cover housing and dining expenses if the home is too damaged to live in until the home is repaired. Homeowners policies typically provide coverage for perishable food losses due to power outages. In general, basic homeowner’s insurance does not provide protection against damage caused by earthquakes or floods. Special insurance policies will be required to cover losses due to these events.

In addition to damage to a home, homeowners policies typically provide coverage for liability issues. For example, if a service person becomes injured while visiting the home, the policy would provide coverage to pay for the person’s medical treatment or other financial losses.