Homeowner's Insurance

Nolo, September, 2004

Before finalizing a mortgage loan, lenders require homebuyers to purchase hazard insurance to pay the lender in the event the house is damaged or destroyed by fire, smoke, wind, hail, vandalism or another similar act. Virtually all homeowners buy comprehensive homeowner's insurance, not just the minimum required by the lender.

In addition to covering the house, homeowner's insurance protects furnishings and other personal items, as well as any other structures on the property, such as a pool or separate garage. Homeowner's insurance also covers some types of personal liability -- if the mail carrier trips over your kid's skateboard, your policy will pay for his medical expenses and other losses. You will want to purchase additional insurance if your house is in a high-risk...