The homeowner takes out a home insurance policy. The amount of insurance generally covers both the cost of replacing the home in the event of a total loss and the personal property it contains, such as furniture, appliances, clothing, jewelry and dishes.
Homeowners
insurance is a package policy. This means that it covers both property damage and legal liability or liability for any injuries or property damage that policyholders or their families cause to others.This includes damage caused by household pets. What is homeowners insurance? Home insurance, also called home insurance, is a type of property coverage that pays for the repair or replacement of your home and belongings in the event of damage, theft, or destruction. It also provides personal liability protection for legal and medical payments in the event that someone is injured in your home or you damage your personal property. Mortgage lenders usually demand it, a homeowners insurance policy is a solid and essential investment for most homeowners.
Read on to learn the basics of home insurance and see how you can protect your home and family with a policy. Just as landlords require renters to maintain a renters insurance policy with a minimum amount of personal liability coverage, mortgage lenders require borrowers to show proof of a homeowner's policy. Lenders usually require that you bear at least 100% of the cost of replacing your home. Your liability coverage could pay your legal fees, in addition to any damages for which you are responsible in the lawsuit, up to the limit of your policy.
Service line protection pays for damage to water lines, electricity, or other utilities for which you are responsible.
