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| Home Insurance Overview |
Home insurance does what it says it does: it insures your home, whether it’s an apartment, condominium or house
The biggest question with home insurance is how much do you need? Well, keep in mind that you aren’t just insuring the structure (and in the case of a condo, you aren’t insuring the structure at all), but you are also insuring the contents of your home. Surprisingly, many people will find that they may actually need more insurance for contents than they need for the structure, especially if they have expensive belongings.
In addition to covering your home and contents, home insurance also provides liability coverage in case someone is hurt on your property.
Usually, when you buy a home, insurance is a condition of your mortgage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster. If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require earthquake coverage if you live in a region vulnerable to earthquakes. After your mortgage is paid off, no one will force you to buy homeowners insurance. But it is not advisable to cancel your policy and risk losing what you’ve invested in your home.
Types of Policies
Description of Coverages
12 Ways to Lower Your Homeowner Insurance Costs
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