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The Curious Bag
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Homeowner's insurance, also known as hazard or home insurance, is insurance for private homes and includes both property and liability coverage. Mortgage lenders require homeowner's insurance as a loan condition to protect the bank in case a home is destroyed.
Types
Regular homeowner's insurance protects against losses of use, accidents occurring at the home, personal property loss, and losses to a home. It does not cover flood or natural disaster insurance, which is purchased separately.
Function
Homeowner's insurance helps homeowners with expenses when unexpected events happen like a fire or a robbery home invasion. It usually lowers out-of-pocket costs.
Features
Homeowner's insurance policies list what will and won't be covered. It is in effect for a fixed period of time that renews after each term when the policy holder makes payments.
Benefits
Homeowner's insurance offers lenders and homeowners peace of mind. Policy holders pay lower premiums and get discounts if they have smoke detectors and burglar alarms.
Considerations
Policy holders need to read their policies and make sure they understand what it says before an unexpected event happens. It can help lessen anxiety in an already stressful situation.
Source
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