What is Homeowners Insurance?
Homeowners insurance is a policy that protects you financially against damage to your home and belongings and certain liability claims. Lenders require it while you have a mortgage, and it is often paid monthly through an escrow/impound account. Coverage, deductibles, and exclusions (like floods or earthquakes) vary by policy.
Example: A lender requires the buyer to have homeowners insurance in place before closing, and the premium is folded into the monthly impound payment.