Not all policies are replacement value policies. Liability Insurance Liability insurance covers the risk of a person being injured on the insured property. The extent of the coverage depends on the terms of the particular insurance policy. Policy A homeowner's policy is a major type of property insurance. Most banks require homeowners with mortgages to buy a homeowner's policy to protect the bank's collateral.
Banks usually require condominium and co-op owners to purchase homeowner's insurance.
Renters may choose to purchase insurance for their personal possessions in case of fire, theft, or other loss. Homeowner's insurance also provides liability coverage up to the dollar limit of the policy in case a person is injured on the property. Ask an expert or become an expert . Click here for details on our Full Disclaimer and Terms of Service. Click here for Provisions Specifically for Attorneys.