Home owner’s insurance

An insurance policy that protects home owners against theft and property damage

Lenders require that you open a hazard insurance policy when you buy a home. Buyers and owners, though, often opt for the extended policy called home owner’s insurance. This policy protects you not only against property damage caused by a fire or a severe rainstorm, but can also shield you against theft, vandalism, as well as for stolen cash and personal items.

Basically, the more coverage you want, the higher your monthly premium will be. If a catastrophe does happen, home owner’s insurance should cover the costs to rebuild your home. If you live in an area that’s prone to natural disasters, like earthquakes and floods, you’ll need a separate policy.

Home owner’s insurance can extend to personal liability, which covers any damage that either you or your family might cause someone. It also protects you against any accident that happens around your home, like the postman getting nipped by your guard dog.

Compare: Hazard insurance