- by C.C.
If you own a home, you need insurance to protect your dwelling and everything inside it. Your lender will likely require this coverage if you have a mortgage. But even if you own your home outright, you still need insurance.
Your policy should provide both protection for liability as well as protection for your property. Liability coverage means your insurer pays out if someone gets hurt at your home or your dog bites someone. Personal property coverage provides funds to replace or repair your furniture and other possessions in the event of a disaster.
Look for a policy that provides replacement value coverage instead of market value coverage. Market value would pay only what your home and property are worth — which might not be enough to restore what was lost. Replacement value coverage will let you rebuild your house or buy new stuff if something happens to your existing home or possessions.