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Homeowners insurance protects your home in the case of peril or lawsuit. Instances that fall under the category of peril are wind, fire, hail, lightning and theft. Lawsuit protection comes in handy if/when a visitor gets injured while inside your home.

Obviously buying a home is an enormous investment -- perhaps the biggest financial investment of your lifetime. Homeowners insurance the best way to protect this financial asset.

Homeowners insurance is not mandatory, though it is strongly recommended. If you’re financing your house (i.e. paying off a mortgage), you might not have the option as lenders usually require homeowners insurance.

There are a handful of variants of homeowners insurance but you want to at least make sure that you have the basics, covering the following:

  • The existing physical structure of your home
  • The personal property inside your home
  • Physical structures on your property (fences, sheds, garages, pools, etc)
  • Injuries to other people while visiting your home
  • Injuries to pets inside your home

The most popular variables on top of the basics include: replacement costs for personal belongings, higher limits, protection for high-value items like jewelry and computer equipment.

Homeowners insurance can protect any type of home; your property doesn’t necessarily have to be a house. It can also be an apartment, townhouse, mobile home, etc -- as long as you own it. And while it’s certainly an additional cost, the coverage is the best way to protect what is likely your biggest investment and your most valuable material possessions.

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