Homeowners insurance is an agreement between you and your insurance company that can cover your house, unattached structures, lawsuits against you, and more. When you buy homeowners insurance, you're buying “coverages,” which are essentially things your insurer agrees to pay for.
It's basically like paying a little now to avoid potentially paying a lot later.
How does homeowners insurance work?
When you purchase insurance, your insurer or agent will ask simple questions about you and your home, and then you'll have some options when picking coverages. Several of these factors can impact your price. Generally, more coverage means a higher price. Then if your house is damaged or something else happens, you can file a “claim” with your insurance company. That's an insurance term for asking for payment based on what's protected on your policy. If it's covered, they'll pay for the damages or losses up to your specified coverage limits.
Do I need homeowners insurance?
Homeowners insurance is not legally required. But, if you have (or are getting) a mortgage, your lender will likely require you to purchase insurance to protect their investment. In fact, Our local, knowledgeable agents can coordinate directly with your lender to help you fulfill their requirements and obtain the coverage that's right for you. Call us today!