As a homeowner, you can legally own a home and not be insured. However, most lenders require for a future homeowner to have insurance coverage. The owner of real property runs the risk of financial loss due to circumstances which are beyond their control. Lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disasters. Other perils that can result in property damage are hail, windstorms, smoke damage, explosion, earthquake, riot, glass breakage, and building collapse. The area that you reside in will determine the type of coverage the lender will require you to obtain.

     Insurance is a method of showing risks with a group. The basic property insurance is fire insurance. The principle of insurance provides for a large number of people (policyholders) to pay premiums into a fund, which is then used to pay for loss by fire, loss by lightning and loss resulting from the removal of personal property from endangered buildings. An insurer can obtain additional coverage by adding endoresements to the basic policy. Insurance companies have compiled homeowner package policies to include additional perils. Be sure to understand exactly what disasters your insurance covers and what it does not.

     Insurance covers liability. It provides protection in case a visitor is injured in your home.If there is theft or damage to your personal property like furniture, clothes, and appliances...your insurance company provides coverage for it.  The insured should carry enough insurance on the property so that if a loss occurs, the reimbursement from the insurance company will fully cover the loss.

TIPS ON SAVING MONEY WITH YOUR INSURANCE COMPANY

• Increase your deductible. The higher the deductible, the less expensive the insurance premium. However, in the event of a loss, you are responsible to pay the amount you agreed to. So make sure the amount is an affordable one!
• By purchasing your homeowners insurance with the same company as your auto insurance, you may be able to receive a discount.
• If you are over the age of 55, you may be able to get a discount.
• If you are a loyal customer to your current insurance company, you may have some rewards that could pay off for you!

    Do your own research. Shop around and compare different services and prices.