Home insurance is a form of property insurance that covers a private residence.
(Hence, why its also known as hazard insurance.)
Note that mortgage insurance is NOT the same as home insurance.
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The former protects the lenders or investors if a borrower defaults on the loan.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
And, for the most part, you cannot deduct home insurance on your tax return.
While you dontlegallyneed a home insurance policy, most mortgage lenders require it before closing.
Though once you pay off your mortgage, you’ve got the option to drop it.
But you know what they say: Better safe than sorry.
Whats Actually Covered Under a Home Insurance Policy?
It would be great if home insurance policies universally covered the same things.
Did you know?
And depending on where you live, the cost of home insurance can vary widely.
What Disasters Are Covered by Home Insurance?
If your water heater suddenly bursts, itshouldbe covered.
But if you neglected to fix that slow drip from your dishwasher for years, thats on you.
Same goes for a leaky roof.
(Theres that its the homeowners responsibility to maintain their property bit again.)
Whats the Ideal Mix of Home Insurance I Should Have?
Talk to a local agent, and shop around for the best deal and coverage for your situation.
Kathleen Garvin (@itskgarvin) is a former writer and editor for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
