Homeowners Insurance

Facts About Homeowners Insurance

Homeowners insurance policies are recommended for people who own homes. This type of policy covers personal belongings in the home and the actual structure. Events such as fires, thefts, vandalism, and natural disasters are covered. Liability is often included as well. It pays for expenses related to someone being injured in your home.

Homeowners Need this Coverage

Most mortgage lenders require homeowners to purchase insurance before they’ll approve the mortgage loan. But even if that’s not a requirement, it’s still wise to have coverage.

How the Insurance Policy Works

When a covered event occurs, the policyholder files a claim. For example, a policyholder would file a claim following a house fire. The insurance will help repair or replace personal property, and repair damage to the structure.

Some coverage isn’t included unless the policyholder adds it. For example, earthquakes and floods generally aren’t included with this type of insurance. The policyholder must specifically purchase coverage for those events.

Types of Homeowners Policies

Homeowners policies fall into 8 different categories. The categories are:

HO-1 Basic Insurance
HO-2 Broad Form
HO-3 Special Form
HO-4 Tenant’s Form
HO-5 Comprehensive Form
HO6- Condo Form
HO7- Mobile Home Form
HO8- Older Home Form


A home is an expensive investment. Insurance is the best way to protect that investment. With homeowners insurance, the policyholder will receive financial help during times of hardship. And recovery becomes easier when there’s someone to provide financial help.