What Is Homeowners Insurance?
Homeowners insurance is a policy that covers damage to a home and its contents from specified events, such as fire or theft, and provides liability coverage if someone is injured on the property. Mortgage lenders generally require it for the life of the loan, and premiums are often paid through escrow.
Common Coverage Parts
Policies typically include dwelling coverage, other structures, personal property, loss of use, and personal liability. Flood and earthquake damage are often excluded and require separate policies.
Deductible
The deductible is the amount the owner pays before the insurer pays a claim.
🧮 Calculate It Yourself
Put Homeowners Insurance into practice with these free calculators — no sign-up, nothing stored.
🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Assessed Value
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.