What Is Homeowners Insurance? | LowerMyBills

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00:00 Introduction
00:07 What Does Homeowners Insurance Cover?
00:41 What Homeowners Insurance Does NOT Cover
00:54 Is Homeowners Insurance Required?
01:11 How Much Does It Cost?
01:34 Cost Factors
01:58 Annie's Recommendation
02:20 Closing

The purpose of homeowners insurance is to cover the cost of property loss or damage. You may experience a fire, storm damage, or theft—which can be costly to recover from. Homeowners insurance isn’t required by law, but your mortgage lender may ask for it. The reason is to protect their interest in the property if disaster strikes.

Whether it’s required or not, homeowners insurance is a must-have for all property owners. It’s possible someone could sue you to collect for an injury, damage to their property, or even a dog bite. On top of covering your home, your policy offers liability protection—including the expense of unexpected lawsuits. Homeowners insurance can protect your family from multiple financial catastrophes, but only if you have the right type of coverage and limits.

Featuring Annie Margarita Yang, Personal Finance Writer

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