Homeowners insurance is a combination of two types of coverage:

  • Property insurance protects homeowners from a variety of potential threats such as weather-related damages, vandalism, and theft.
  • Liability insurance protects homeowners from lawsuits or claims filed by third parties for accidents that happen within the home.

The cost of a homeowners insurance policy will vary depending on the type of property being insured (e.g. condominium, mobile home, single-family residence, etc.) and the amount of coverage the owner desires. Lenders require that buyers obtain homeowners insurance in order for the insurance premium to be included in the monthly mortgage payment. A mortgage calculator gives an estimate of your potential cost, but talk to an insurance company to determine the exact amount.