Frequently Asked Questions about Homeowner's Insurance

Do I have to have homeowner's insurance if I own a home?

At the most basic level, you do not. It is not usually a good idea to go without protection for your most expensive asset, but if you have reasons for feeling that insurance is not necessary, homeowner's insurance, unlike auto insurance, is not mandatory. If you are paying a mortgage for your home, the lending institution may require that you have insurance as part of your contract in order to protect their asset. Also, if you live in an area managed by a homeowner's association, they may require that you keep and maintain a homeowner's insurance policy as well.

Do I need insurance if I rent my home?

Insurance for renters is known as renter's insurance and is different from a homeowner's policy in that the insurance does not protect against the structural damage of the building. That should be covered by the insurance policy of your landlord.

How much insurance do I need?

The varying types of insurance make this very dependent upon your situation. Not only is the value of your home to be considered in determining how much insurance you need, but other factors such as the frequent or natural dangers that may exist in your area, the crime rate, or other factors that will determine the cost of your policy and the coverage you should search for.

Do I have to get extra insurance if I have a pool?

If you install a swimming pool in your home, you should consider increasing your insurance coverage and even possibly getting an umbrella policy, which usually costs only a few hundred dollars a year and can provide you $1,000,000 or more in additional coverage in case someone is injured while using your pool. An umbrella policy will also provide coverage while you drive your vehicle.

Do I need homeowner's insurance if I have a condo?

There are separate policies that cover condo owners specifically as well. Ask the insurance company you are interested in what coverage they offer. A policy that covers a condo owner is typically a cross between homeowner's insurance and renter's insurance, that protects your property inside your condo, as well as part of the structural area around your home.

For more help with homeowners insurance be sure to look through the tips and tactics.