Why do I need homeowners insurance?

But there’s more to it than that…
Homeowners insurance carries with it several other types of coverage that people should not be without. 

For example:
• Liability coverage.  Homeowners insurance has a liability component that will protect you from potentially huge financial losses.  If your dog injures someone severely—your homeowners coverage will kick in if you’re found negligent somehow. 
• Contents.  The contents of your home will be covered if everything is destroyed in a fire.  Nobody is likely to be in position to refurnish an entire home in a timely fashion if all of their possessions are lost. 
• Structure Damage.  Your homeowners insurance will foot the bill if you have to repair or rebuild your entire home in the event of loss. 

Until your home is paid off—the mortgage company is listed on your policy as a payee.  They own most of it after all and they demand the home is insured to value.