Insurance
Homeowners Insurance
A policy that protects your home and belongings against damage from events like fire, storms, theft, and liability claims. Mortgage lenders require homeowners insurance as a condition of the loan. Annual premiums vary widely based on your home's location, size, age, and coverage level — typical costs range from $1,000 to $3,000 per year. Your premium is often paid through your escrow account as part of your monthly mortgage payment.
Why It Matters
Homeowners Insurance is part of the safety net that protects your investment in a home. While insurance adds to your monthly costs, going without adequate coverage puts your finances at serious risk.
Review your insurance needs carefully before and after closing. Understanding what homeowners insurance covers and what it does not helps you make smart decisions about the level of protection you need.