Taxes & Insurance
What does homeowners insurance cover and is it required?
Updated Jul 1, 2026
The short answer
Homeowners insurance covers damage to your home and belongings and provides liability protection, and lenders require it for as long as you have a mortgage. It is different from mortgage insurance (which protects the lender) and title insurance (which covers ownership defects). Premiums are usually paid monthly through escrow and vary by location, home value, and coverage.
Key points
- Covers your property, belongings, and liability.
- Required by lenders while you have a mortgage.
- Different from mortgage insurance and title insurance.
- Usually paid monthly through escrow.
What it often excludes
Standard policies typically exclude flood damage, which requires separate coverage. Review your policy’s exclusions so you are not surprised by an uncovered loss.
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Sources
Every claim above traces to a public government source.