Homeowners insurance is a type of coverage that pays out if your home or personal property suffers damage due to an accident, including a fire, or certain natural disasters. It also includes personal liability coverage, which protects you in case a bodily injury or property damage lawsuit is filed against you.
Homeowners insurance premiums can be costly, depending on your location, coverage limits, and the value of your home and property. To approve a mortgage, lenders require that borrowers buy a homeowners policy. Coverage is otherwise optional, though, and some policyholders allow their coverage to lapse once their mortgage is paid off. However, about 1 in 20 homes has an insurance claim every year, and the peace of mind a homeowners insurance policy could offer may be worth more than its cost.
 
Read More >