What is Home Owners Insurance?
A homeowners insurance policy is a multi-peril policy, which means it combines property and casualty coverages in the same policy. A multi-peril policy offers numerous advantages to consumers as it conveniently packages a range of coverages under one policy and is normally cheaper than if all the coverages were purchased individually.
Homeowners insurance is sold as a personal package policy designed to cover a broad spectrum of perils associated with owning or renting a home. A peril is an event that causes damage to property; two examples are fire and theft. Although insurance on your home is not required by North Carolina law, if your home is mortgaged your lender may require the purchase of insurance on your home. Additionally, if you are a renter your landlord may suggest that you purchase insurance to cover your personal property.
Homeowners insurance also protects you against liability for accidents that injure other people or damage their property. The policy covers medical expenses for persons accidentally injured on your property. The policy does not protect you against losses from floods, earthquakes, mudslides, mudflows or landslides. Contact your agent to discuss your options for obtaining coverage for these losses.
