Why Get Homeowners Insurance?
You need a homeowners insurance policy to cover unforseen disasters that may happen to your actual home and the things in it. Homeowners insurance is classified as a package policy, meaning that it covers damage that occurs to your property and covers your liability for any injuries to you or visitors to your home. Injuries caused by your pets would also be covered under a homeowners insurance policy.
Homeowners insurance will cover damage from some disasters, but you typically need to add on extra coverage for disasters specific to your area. These extra coverages would protect you from damage caused by floods or earthquakes. Many people along the Gulf Coast are finding it expensive to live there mainly becuase of the rising cost of flood insurance due to the extra high number of hurricanes.
But Homeowners Insurance is Too Expensive
Unlike auto insurance, you are able to have a home without purchasing even a required liability insurance coverage. But like auto insurance, if you are financing the purchase of your home, the bank will always require you to insure it for the amount you owe to protect their asset.
If you live in an area that normally gets flooding or is prone to earthquakes, the bank will also usually require you to get flood insurance or earthquake insurance. If you live in a condominium, your homeowners association will require all the tenants to have homeowners insurance.
