Why do you have to have insurance?

Answer 1

In regards to Homeowners insurance: most homeowners have a mortgage...therefore your home technically belongs to the bank/lender and they need to protect their 'investment' so banks/lenders require that you carry adequate insurance to pay for the damages that may occur to your home or even to pay the debt, in full, should you suffer a major catastrophe & your house is totally destroyed. Remember, the lender has a financial interest in your home. Likewise, most Homeowners Insurance Policies offer Premises and/or Personal Liability coverage

One of the most common claims that this type of coverage helps to protect you, is in the case of liability from dog bites. If your dog bites a neighbor either while off-leash or on-leash, this coverage can offer some financial protection. Certain breeds of dogs are automatically EXCLUDED from coverage, so be sure to contact your agent/insurance company for more information. Don't wait until after you buy that 'guard-dog' and it bites somebody! Likewise, Homeowners Insurance offers coverage for your much-valued contents...ie., furniture, clothing. Also there is usually coverage for other structures such as outbuildings. In the event that your home is uninhabitable due to a covered claim, your homeowners policy usually offers coverage for having to rent another apartment/home, etc. while your home is being repaired or rebuilt.

Always be sure to review your Homeowners Policy EVERY year, with your agent/insurance company!