 TITLE: What Does Homeowners Insurance Cover? CONTENT: Is Homeowners Insurance Mandatory?\n----------------------------------\nHomeowners insurance is a form of coverage that protects your home and belongings from loss or damage. While you aren't legally obligated to carry it, if you're taking out a mortgage, most lenders will require you to purchase homeowners insurance.\nThat's because the lender makes a large investment in your property when you get a mortgage to buy a home. If your home burns down or is otherwise damaged while you are paying on the loan, homeowners insurance helps protect the lender from financial loss.\nIt's common (but not usually required) for homeowners insurance premiums to be rolled into your monthly mortgage payment. Your payment goes into an escrow account each month, and your lender pays the insurer on your behalf.\nJust like with other forms of insurance, homeowners insurance comes with a deductible. If you file a claim, you'll pay the deductible amount, after which your insurance will kick in and the insurer will pay the covered amount above that. END