 TITLE: How Are Homeowners Insurance and Mortgage Insurance Different? CONTENT: What Is Homeowners Insurance?\n-----------------------------\nHomeowners insurance protects you if your home or belongings are damaged during an insured event—think natural disasters like hurricanes, fires, hailstorms and the like. The majority of policies also cover external structures like garages.\nEvery home insurance policy is different. For example, most standard policies exclude earthquakes and floods, so you may need to purchase additional insurance if you want one of these types of coverages. Damage that can be traced back to ordinary wear and tear is also typically not covered. On the upside, most homeowners insurance policies will cover some degree of loss if your personal belongings are stolen or destroyed in an insured event.\nHomeowners insurance typically extends to liability as well. If someone has an accident or gets hurt on your property, your policy will likely cover legal fees and medical costs. The fine print should clarify out-of-pocket costs you may encounter when filing a claim.\n### Homeowners Insurance and Your Mortgage\nSo what does homeowners insurance have to do with getting a mortgage? In most cases, lenders will require you to have homeowners insurance to fund your mortgage. Because they have a financial stake in your home, lenders want to make sure they're protected if, say, a hurricane levels the property.\nHow much you'll pay for it varies depending on where you live, your deductible, the replacement cost of your home and more. The average premium for the most common type of insurance was $1,211 in 2017, according to a National Association of Insurance Commissioners report. Lenders typically fold the premium into your monthly mortgage payment, but you may be able to request to pay it on your own.\nLike anything else, it pays to shop around. Look to your state insurance department, consumer guides, and referrals from friends and family to compare rates and get the best deal. END