Buying a home is a big deal and a significant investment. For most of us, our house is our biggest expense. It's where we relax, rest our heads at night, probably work from now, and it's what keeps us, our family's, and all of our stuff safe.
At its core, homeowners insurance is an insurance policy that covers losses and damages to your home and assets in the house. Homeowner insurance policies typically include additional living expenses (ALE) coverage.
There are different types of insurance coverages in the US: 1. Actual Cash Value 2. Replacement Cost 3. Guaranteed (or extended) Replacement Cost/Value
Homeowners insurance will cover the costs of making any repairs due to covered damages after the deductible has been paid. Your insurance company will likely send a claims adjuster to your home to inspect the damage.
Most banks will require proof of insurance before lending money to potential homeowners. You can obtain policies through the bank or lending institution itself, or homeowners may choose to get the policy independently.