What is the purpose of homeowners insurance?

Why do people recommend home insurance? It seems expensive and I'm not sure why it's necessary.

Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
The purpose of homeowners insurance is to protect your home from damage.
If damage were to occur from a covered peril, your home insurance would repair or replace it. Most homeowner’s policies cover things like:
  • Theft
  • Vandalism
  • Fire
  • Lightning
  • Hail
  • Wind
  • Explosion
  • Falling objects
While damage to your home from a fire or other event may seem unlikely, it’s always better to be protected. Additionally, most lenders or mortgage companies require homeowner’s insurance, meaning you may have to have it, regardless of whether you want it.
If cost is a concern, there are ways to save on a policy. If you already have
car insurance
, you can try to bundle your home insurance with it. Many insurance companies offer multi-policy discounts.
You could also consider raising the deductibles on your
home insurance
. Your deductible is the amount you pay before your insurance will provide coverage when submitting a claim. If you can afford to raise your deductible, you could reduce your monthly or yearly premium.
If you’re unsure of where to start when looking for home insurance, go to
. A licensed broker that offers end-to-end support, the free Jerry app gathers affordable quotes for home and auto insurance. Jerry can even help you switch plans and cancel your old policy!
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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