Insuring Your Home

How does homeowners’ insurance work?

Mortgage companies and banks that finance your loan to purchase a house require you to have a homeowners’ insurance policy. The policy protects your investment (your house) in case of loss due to damage from a catastrophic natural event, such as a hurricane or earthquake, as well as damage because of snow, ice, or fallen trees. You may get a policy covering the replacement cost of your home at current market rates. Your premium is paid monthly, and remains in force as long as you continue to pay the premium and retain ownership of the house.


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