What is Homeowner's Insurance and who does it protect?

Last modified December 4, 2021

Homeowner's Insurance covers loss or damage to the home itself resulting from fire or other peril. The damage may occur on or around the home. The policy protects the owner of the property from loss which might be suffered from such hazards, and at the same time it protects the lender since the lender has a substantial investment in the property through the mortgage loan.