Homeowner’s insurance and Home insurance is one and the same thing. Home Insurance is the general and popular term, where as Homeowner’s Insurance is the technical term used by insurance and mortgage companies.
Home insurance is vital as it protects your home, the actual building; and your possessions inside the house, against damage and loss. Moreover, mortgage companies require borrowers to have insurance coverage for the cost price and then only will make a loan or finance a residential real estate transaction.
Homeowner’s insurance also provides liability coverage against accidents inside the home or on the property. Homeowner’s Policy provides that the insurer will cover costs related to:
Damage to the interior or exterior of the house – In case of damages due to fire, lightning, vandalism or other covered disasters; the insurer will compensate you so that the house can be repaired or completely rebuilt. Damages from floods, earthquakes etc, are not covered and you will have to buy separate riders if you need these. Garages, sheds or other structures on the property can be covered separately.
Loss or damage to personal belongings – Furniture, appliances, clothing and other contents of your home are covered if they’re destroyed in an insured disaster. However, there may be a limit on the amount that will be reimbursed to you.
Personal liability for damage or injuries caused by you or your family – Liability coverage protects you from lawsuits filed against you, and it includes damages caused by your pets. This means that if your dog bites the postman, the insurer will pay for medical bills and other legal claims and compensation. If anyone is injured within your premises, you will be covered in case they claim for compensation.