--- title: Why Homeowner’s Insurance is Essential for Property Owners description: Homeowner’s insurance is arguably the most necessary expense when buying a residential property . It protects your home, belongings and even grants liability. image: https://blog.sdnyrealty.com/hubfs/Blog_Images/homeowner's%20insurance.jpg --- - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Forms](https://sdnyrealty.com/forms/) -   [![S&D Commercial Real Estate Agency](https://blog.sdnyrealty.com/hs-fs/hubfs/S__D_Real_Estate_January2019/images/sd-original-logo_300px.png?width=300&height=194&name=sd-original-logo_300px.png "S&D Commercial Real Estate Agency")](https://sdnyrealty.com/) - [About](https://sdnyrealty.com/long-island-commercial-real-estate-firm/) - [Agents](https://sdnyrealty.com/long-island-real-estate-agents/) - [Listings](https://sdnyrealty.com/property-listings/) - [Property Management](https://sdnyrealty.com/property-management-company/) - [Resources](https://sdnyrealty.com/real-estate-resources/) - [Neighborhood Guide](https://sdnyrealty.com/neighborhood-guide/) - [Long Island](https://sdnyrealty.com/long-island-commercial-real-estate/) - [Nassau County](https://sdnyrealty.com/nassau-county-commercial-real-estate/) - [Bethpage](https://sdnyrealty.com/bethpage-commercial-real-estate/) - [Farmingdale](https://sdnyrealty.com/farmingdale-commercial-real-estate/) - [Franklin Square](https://sdnyrealty.com/franklin-square-commercial-real-estate/) - [Garden City](https://sdnyrealty.com/garden-city-commercial-real-estate/) - [Glen Cove](https://sdnyrealty.com/glen-cove-commercial-real-estate/) - [Hempstead](https://sdnyrealty.com/hempstead-commercial-real-estate/) - [Hicksville](https://sdnyrealty.com/hicksville-commercial-real-estate/) - [Long Beach](https://sdnyrealty.com/long-beach-commercial-real-estate/) - [Mineola](https://sdnyrealty.com/mineola-commercial-real-estate/) - [Rockville Centre](https://sdnyrealty.com/rockville-centre-commercial-real-estate/) - [Suffolk County](https://sdnyrealty.com/suffolk-county-commercial-real-estate/) - [Babylon](https://sdnyrealty.com/suffolk-county-commercial-real-estate/babylon-commercial-real-estate/) - [Brookhaven](https://sdnyrealty.com/brookhaven-commercial-real-estate/) - [Hauppauge](https://sdnyrealty.com/hauppauge-commercial-real-estate/) - [Huntington](https://sdnyrealty.com/huntington-commercial-real-estate/) - [Islip](https://sdnyrealty.com/islip-commercial-real-estate/) - [Melville](https://sdnyrealty.com/melville-commercial-real-estate/) - [Riverhead](https://sdnyrealty.com/riverhead-commercial-real-estate/) - [Smithtown](https://sdnyrealty.com/smithtown-commercial-real-estate/) - [Southampton](https://sdnyrealty.com/southampton-commercial-real-estate/) - [Consulting Services](https://sdnyrealty.com/consulting-services/) - [Property Appraisal Services](https://sdnyrealty.com/property-appraisal/) - [Zoning Regulations](https://sdnyrealty.com/zoning-regulations/) - [Forms](https://sdnyrealty.com/forms/) - [Veterans & Military Housing](https://sdnyrealty.com/veterans-military-housing/) - [Join our Program](https://sdnyrealty.com/veterans-military-housing/#apply-now) - [Forms & Applications](https://sdnyrealty.com/forms/) - [Pay Rent](https://sdnyrealty.com/pay-rent/) - [Blog](https://blog.sdnyrealty.com/blog) - [Contact](https://sdnyrealty.com/contact/) # Why Homeowner’s Insurance is Essential for Property Owners - August 02, 2017 - [Finance](https://blog.sdnyrealty.com/blog/topic/finance), [property insurance](https://blog.sdnyrealty.com/blog/topic/property-insurance), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage), [insurance](https://blog.sdnyrealty.com/blog/topic/insurance), [homeowner’s insurance](https://blog.sdnyrealty.com/blog/topic/homeowners-insurance) - 0 ![Why Homeowner’s Insurance is Essential for Property Owners](https://blog.sdnyrealty.com/hubfs/Blog_Images/homeowner's%20insurance.jpg) There are many incredibly important steps that a prospective buyer must take on their way to [purchasing a new home](https://blog.sdnyrealty.com/blog/buying-a-house). Some are familiar, others aren’t. Nevertheless, they must all be undertaken with the utmost attention and deliberation when considering the consequences. Just think about what can go wrong if you don’t have a homeowner’s insurance policy to fall back on! ## A Guide to Homeowner’s Insurance and its Many Benefits ### The Policy Homeowner’s insurance, sometimes known simply as home insurance, is designed to protect a property and its belongings from any type of hazard, natural disaster or accident. Mortgage lenders frequently require home insurance as a way to protect their asset before collecting full payments from the owner. ![homeowner's insurance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/homeowner's%20insurance2.jpg?width=320&name=homeowner's%20insurance2.jpg "homeowner's insurance") #### What’s Covered Basically, if there is property damage or any personal possessions are broken or taken, the homeowner will be [covered](https://blog.sdnyrealty.com/blog/measuring-the-necessity-of-renters-insurance), although individual details are different depending on the policy. Items that are casually broken aren’t included. The list of criteria includes: - Theft - Vandalism - Fire, smoke and lightning destruction - Falling trees and branches - Snow and sleet damage - Plumbing or heating incidents Furthermore, there is also a significant amount of liability included in most homeowner’s [insurance](https://blog.sdnyrealty.com/blog/what-is-title-insurance) policies. For instance, if a visitor is injured or harmed on a property, the policy will guarantee that the homeowner will not be held personally or legally responsible for any damages that the victim may seek. ![homeowner's insurance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/homeowner's%20insurance1.jpg?width=320&name=homeowner's%20insurance1.jpg "homeowner's insurance") ### The Price First of all, it’s important to remember that there is no single fixed amount that one must pay to maintain a policy, although the national yearly average was $1,096 in 2016 according to the [National Association of Insurance Commissioners](http://www.investopedia.com/terms/n/nainsurancec.asp). Instead, homeowner’s insurance [premiums](https://www.allstate.com/tools-and-resources/home-insurance/how-much-is-homeowners-insurance.aspx) depend on a variety of different reasons like: - Location - Size - Construction type - Property features - Related risk factors - Condition - Prior claims As a general rule of thumb, polices for [homes](https://blog.sdnyrealty.com/blog/10-not-so-costly-improvements-to-increase-your-home-value) in areas with high-crime rates and frequent natural disasters are typically more expensive. Also, premiums can vary according to the amount of claims that the homeowner is seeking to file on the property, as well as their credit score. ![homeowner's insurance](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/homeowner's%20insurance3.jpg?width=320&name=homeowner's%20insurance3.jpg "homeowner's insurance") ### The Benefits In some cases, mortgage lenders will ask a home buyer to prepay an entire year’s worth of insurance coverage before the property closing. Again, they want to ensure that the asset they’re collecting payments on will be taken care of in the event of an incident. However, when an insurance premium is paid in full before closing, the homeowner will be able to exclude it from the closing costs. Also, when one is required to set up an escrow account for payments in periodic installments, their lender will usually manage it, meaning less finances to worry about. For anyone looking to buy a home anytime soon, make sure that you learn all there is to know about homeowner’s insurance so you can protect yourself from any future liability! --- [![View Available Listings Here](https://no-cache.hubspot.com/cta/default/432922/9ad65918-b9a7-437a-8872-09c1d59299de.png)](https://cta-redirect.hubspot.com/cta/redirect/432922/9ad65918-b9a7-437a-8872-09c1d59299de) ### Tags: - [Finance](https://blog.sdnyrealty.com/blog/topic/finance) - [property insurance](https://blog.sdnyrealty.com/blog/topic/property-insurance) - [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage) - [insurance](https://blog.sdnyrealty.com/blog/topic/insurance) - [homeowner’s insurance](https://blog.sdnyrealty.com/blog/topic/homeowners-insurance) ### [Previous post](https://blog.sdnyrealty.com/blog/rental-property) #### [How to Run a Rental Property that Turns a Profit](https://blog.sdnyrealty.com/blog/rental-property) ### [Next post](https://blog.sdnyrealty.com/blog/long-island-mansions) #### [Extravagant Long Island Mansions that are Worth a Visit](https://blog.sdnyrealty.com/blog/long-island-mansions) ### Related posts [![What is a Home Equity Loan, and How does it Actually Work?](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Home%20Equity%20Loan.jpg?width=768&name=Home%20Equity%20Loan.jpg)](https://blog.sdnyrealty.com/blog/home-equity-loan) - August 08, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage), [Loans](https://blog.sdnyrealty.com/blog/topic/loans) ### What is a Home Equity Loan, and How does it Actually Work? If you’re a homeowner looking to finance a large purchase or pay off preexisting debt, consider a home equity loan, also known as a second mortgage.... [Continue reading](https://blog.sdnyrealty.com/blog/home-equity-loan) [![What does a VA Home Loan Cover, and How do you Use it?](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/VA%20Home%20Loan.jpg?width=768&name=VA%20Home%20Loan.jpg)](https://blog.sdnyrealty.com/blog/va-home-loan) - June 13, 2018 - [residential real estate](https://blog.sdnyrealty.com/blog/topic/residential-real-estate), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage), [Veterans & Military Housing](https://blog.sdnyrealty.com/blog/topic/veterans-military-housing) ### What does a VA Home Loan Cover, and How do you Use it? Here at S&D Realty, we offer veteran and military housing, which is usually financed through Veterans Affairs mortgages, otherwise known as VA loans.... [Continue reading](https://blog.sdnyrealty.com/blog/va-home-loan) [![What is a Reverse Mortgage Loan, and How does it Work?](https://blog.sdnyrealty.com/hs-fs/hubfs/Blog_Images/Reverse%20Mortgage.jpg?width=768&name=Reverse%20Mortgage.jpg)](https://blog.sdnyrealty.com/blog/reverse-mortgage-loan) - April 25, 2018 - [Finance](https://blog.sdnyrealty.com/blog/topic/finance), [Mortgage](https://blog.sdnyrealty.com/blog/topic/mortgage) ### What is a Reverse Mortgage Loan, and How does it Work? If you’re a homeowner over 62 and in need of extra funds, perhaps it’s time to consider taking out a reverse mortgage. Unfortunately, if you aren’t a... 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