Often, people do not discover how inadequately they are covered until a disaster occurs, then they find that their insurance covers only a small portion of their expenses. It is essential for homeowners to bring coverage up to date, to assure that unexpected tragedy does not lead to financial disaster. Most people finance homes with a bank or savings and loan mortgage. This means an obligation to the lender to make payments no matter what. If a house burns to the ground, homeowners still are obligated to keep up with payments.
Insurance provides security for disaster situations.
Homeowner's Insurance Coverage Homeowner's insurance covers two separate areas. In addition to the house, personal possessions inside the house also are covered. Clothing, furniture, pictures, books, and appliances are some of the items covered as personal property. The second area of a homeowner's policy covers liability. Individuals are liable and can be sued for large sums of money if they negligently cause property damage or bodily injury to someone else.