"What is homeowner insurance and why do I need it?"

The typical homeowners insurance policy, sometimes referred to as hazard insurance, protects a stick-built home and sometimes a manufactured or modular home that is constructed on a continuous concrete foundation against loss from a variety of perils. The policy also includes coverage for contents, loss of use, and personal liability insurance for damage or injury to a non-owner's person or property. It is a multiple-line insurance, in that it includes both property and liability coverage with an indivisible premium, meaning that a single premium is paid for all risks.

If you have a mortgage on your property, your lender will require you to carry homeowners insurance in an amount sufficient to cover their interest in the property and must have as named insureds any person with an insurable interest, typically only owners and lenders.  Of course, even if you don't have a mortgage on your property, you would still want to insure it simply because a home usually represents a person's most expensive asset worth thousands and, in many areas, hundreds of thousands of dollars.

There are also insurance policies to cover a variety of living situations. If you rent a place to live, you can purchase renter's insurance. If you own a condominium, you can purchase a condo insurance policy. If you own a manufactured home, there is a mobile home insurance policy.