Buying a home is more than just walking into a house. Not only you want to make sure that you have the right investments set in place, but you also want to make sure that you have the right safeguards to protect you in case of an unfortunate event or occurrence .

Having homeowners insurance is an important part of investing in real estate and living in a home. With most lenders, it is required that you have homeowners insurance. This is because the lender has a vested interest in the safeguard of your property.

Most homeowners insurance is chosen prior to the final closing of your home. This insurance protects not only the physical property (actual structure of the house), but also your home's contents as well. In addition, homeowners insurance can protect against accidents, liability issues and natural disasters.

Homeowners insurance is divided into a variety of categories, all beneficial to different situations. The best way to decide on homeowners insurance is to determine the value of your physical property and the value of its contents. You want to be sure you cover as much as its value as it is affordable.

What Does Homeowners Insurance Provide?

Each homeowner insurance policy is different, but standard policies usually provide:

Broad coverage for damage to your house and any permanent structures on your property -unless the cause of the damage is specifically excluded in your policy;
Personal property coverage due personal items in your home that may be damaged or destroyed and are specified in your policy;
Limited coverage which is available for items such as stolen jewelry;
Additional home coverage for valuable items which can be purchased through endorsements to your homeowners’ policy.
Coverage for hurricane and flood are usually separate policies and may require and/or advice.

Note: Coverage amounts vary depending on your state of residence. Choosing a deductible is a very important decision which will impact the cost of the policy versus its coverage.