Peace of Mind: How to Protect Your Home With Insurance

by Carson BuckJanuary 30, 2017

What You Get for That Portion of Your Mortgage Payment

If you purchased your home with a loan some time ago, you may not even notice the portion of your monthly mortgage payment that goes to your homeowner’s insurance provider. New and prospective homeowners, on the other hand, are usually fully aware of what it’s going to cost to insure their property as they sort through what will go into their monthly payment, even if they aren’t exactly sure why they need a homeowner’s policy and what it protects them and their property against.

According to an article posted to the BH Insurance website, homeowner’s insurance policies protect homeowners (and the lenders who have an interest in their properties) in two key ways. First it protects the home, any additional structures, the homeowner’s belongings, and the property itself against damage or loss in most cases. Secondly, homeowner’s insurance also protects the owner against liability in the case of injury or loss suffered by others on the property or as a result of the property owner’s action or inaction.

Will I Ever Use My Policy?

To many who have not suffered a loss that resulted in a claim against their homeowner’s policy, the monthly premium may seem like money lost, never to be recovered. But, according to statistics published on the Insurance Information Institute website, more than 5% of all homeowners in the United States will likely have to file a claim against their policy in any given year.

That may seem like a small percentage, but keep in mind that those are unique claims filed each year by 5% of homeowners nationwide. Claims range widely, from fire damage and storm damage, to losses occurring as a result of theft or attempted theft.

What Does Homeowner’s Liability Insurance Cover?

Though, according to the Insurance Information Institute, the overwhelming majority (as much as 97% in some years) of all claims are related to property damage, one of the most significant aspects of a homeowner’s insurance policy is its coverage against liability in case of personal injury, or property damage incurred on the owner’s property as a result either action or inaction on the part of the homeowner.

Between 2 and 5% of most year’s homeowner’s insurance claims stem from liability claims. These claims range widely and policies can be made to cover everything from falls on sidewalks adjacent to the property, to accidental death or injury blamed on an “attractive nuisance.”

A Requirement That Makes Good Sense

There’s a good reason that most lenders will step in and pay the insurance premiums for homeowner’s polices that cover properties that they have a monetary interest in: they are protecting their investment. A homeowner’s policy is a requirement in many states and for good reason. It protects the homeowner and the community from accidents, certain weather events, and a host of other losses that can occur. It is a far cry from money that disappears every month, never to return. is the place to dream and discover your ideal home! Are you starting to get the itch to look for your first or next home, but don’t know where to start? You’ve come to the right place! Browse our real estate and lifestyle blog for home buying tips, mortgage guides, DIY ideas, interior design, lifestyle topics, general home inspiration, or just some homes fun. We are sure you can scratch that itch and find all the information and tools you need to help in your home search. Want to start looking at available real estate right now? Head to our home page and check out homes for sale or rent listings all over the country. Happy house hunting!

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About The Author
Carson Buck
Carson is a real estate agent based out of Phoenix, Arizona. Carson loves data and market research, and how readily available it is in today's world. He is passionate about interpreting these insights to help his clients find and buy their perfect home. Carson got into the real estate industry because he loves the feeling of handing over the keys to a new home to happy clients. In his free time, he works on his backyard bonsai garden and spends time with his wife, Julia.