Unlike car insurance, homeowners insurance isn’t required by law, but if you finance your home through a mortgage lender, the lender usually requires it. It protects your home, its contents, and, indirectly, your other assets in the event of fire, theft, accidents or other disasters. Homeowners insurance is like a parachute. Most of the time, you’re not going to need it, but you’re going to be really glad you have it if you find yourself falling from 10,000 feet.
What are the basics our listeners know about home insurance?
There’s not a one-size-fits-all formula when it comes to home insurance. Your neighbors’ homes may be similar to yours in style and value, but you have to consider the contents as well. Your home insurance policy should cover enough to entirely rebuild and refurnish your home if it were completely wiped off the map. A reliable appraiser can give you an estimate of what it would take to rebuild; use that figure as a jumping-off point to determine how much replacement coverage you’ll need.
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(Source: Black America Web)