It takes more than just the roof to stay covered.
Homeowners insurance helps homeowners minimize the risk of financial loss related to their property. The policy benefits homeowners by insuring against liability, property damage, and the loss of personal property. You might not be required to have this coverage, but it is a smart decision to have it.
Your policy will typically cover the replacement cost to repair or rebuild a damaged home. This coverage usually does not ensure the land on which you live. This is why you need to purchase separate flood insurance to guard against flood damage to the home and property. A policy may also pay to replace the contents inside the home, such as furnishings and clothes, as well as a replacement home while the current home is being repaired or rebuilt after damage.
Liability is also an issue when someone visits your home. Someone could trip on a garden hose and break a few bones. They could sue and you would be responsible for medical expenses, lost wages and more. The home insurance policy will help with these costs and legal fees if you have the proper coverage.
As a homeowner, you face the risk of considerable financial loss if you do not have homeowners insurance. If you want to protect your investment, then this insurance is one way to do achieve that goal.