Why It’s More Than a Mortgage Requirement
Your home is likely your largest asset. While lenders require insurance, homeowners coverage protects far more than the mortgage lender’s interest — it safeguards your financial future.
What’s Typically Covered
- Dwelling Coverage – Pays to rebuild or repair your home after covered perils like fire, hail, or windstorm.
- Personal Property – Replaces furniture, electronics, and clothing if stolen or damaged.
- Liability Protection – Covers injuries to guests and damage you accidentally cause to others.
- Additional Living Expenses – Pays for temporary housing if your home is unlivable.
What’s Not Automatically Covered
Floods, earthquakes, and sewer backups usually require separate policies or riders. Many homeowners don’t realize until after a loss that they’re not protected.
Replacement Cost vs. Actual Cash Value
Make sure your dwelling coverage reflects the cost to rebuild at today’s prices — not the home’s original purchase price. Construction costs rise, and underinsuring can leave you paying out of pocket.
Ways to Save on Home Insurance
- Bundle with auto insurance.
- Install security systems or smoke detectors.
- Increase deductibles if you have savings to cover smaller losses.
- Review coverage annually to adjust for home improvements or market changes.
Pro tip: Keep a digital home inventory (photos or videos) to make claims easier and faster.
