Just think
about it for a moment. You own a home and something happens to it
like a fire or a tree falls on it during a thunderstorm. What
happens? Well, if you have insurance, you get money to repair or
rebuild depending on the nature of the accident. Without insurance,
you do not get anything. The mortgage company requires that you have
insurance to protect their investment in your home. They want to be
able to get their money back if the home burns down too.
Given that
you have to have it, let us look at some of the key basics of your
homeowners insurance policy. What does your policy cover? In
general, your policy will cover the repair costs to fix or rebuild
your home (and even structures on your property like a shed or
detached garage) in the case of some catastrophe, or peril. Some
perils covered are a fire in your home, water damage from a broken
water pipe in a bath or kitchen, damage due to a fallen tree, or
even wind damage.
