Homeowners Insurance

Post date: Nov 1, 2010 8:05:31 PM

If you own a home and have a mortgage on it like more than half of the homes in America, then you have to have homeowners insurance.

Homeowners insurance provides financial protection against disasters. Disasters happen everyday. A normal homeowners or renters insurance policy insures the home itself and your contents.

Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or immediate members of your family may have caused to other people. This includes damage caused by household pets as well.

Damage caused by most disasters are covered but there are exceptions. The most significant are damage caused by floods and earthquakes. You must buy two separate policies for flood and earthquake coverage. Poor maintenance is also excluded as insurance is protection from disaster, not a substitution for neglect. Maintenance related problems are the homeowners' responsibility.