A Primer Course In Home Insurance


In most cases people understand why they need homeowner’s insurance, but sometimes you might think it’s a waste of money. So many people think “That’s not going to happen to me.” That’s unfortunate, because things happen randomly and no one is protected from everything. It is definitely better to be safe than sorry. But, there is another issue. Insurance policies are hard to understand. Most of us rely on our insurance agents, trusting that they are giving us the right coverage at the right amount. It’s more than helpful to understand why you need insurance and what it all means. It’s downright wise. Hence, today’s primer course in home insurance.

Why You Need Insurance

There are two reasons why you need to carry homeowner’s insurance: you and your lender.

Your Assets: You need to carry homeowner’s insurance to protect your assets. Homeowner’s insurance covers:

  • The physical structure of your home
  • Your belongings
  • Injury to others that happen on your property

Without homeowner’s insurance you would be required to pay should something happen to any of the above. Such expenses could very well wipe out your savings and put you in debt.

Your Lender: Your mortgage lender will require that you carry homeowner’s insurance in order to have a mortgage with them. They have a lot at stake, just as you do. In some cases, if your insurance were to lapse, the mortgage lender will purchase basic coverage (just for the physical structure)–and at a higher premium–that you will be required to pay until you purchase insurance of your own.

Deductibles and Other Things

Your deductible: An insurance deductible is how much you are required to pay out-of-pocket before your insurance company begins to pay the claim.

Coverage: Your insurance company will only pay (after the deductible) for peril’s covered by the policy. For instance, most homeowner’s insurance policies do not cover damages caused by floods or earthquakes unless you specifically ask to include them in your policy.


With over 20 years of experience in the insurance industry, the Jeff Van Matre Insurance Agency can help you choose the right coverage plan to protect your personal and business assets. To learn more, or to get a free quotecall our Carrollton, TX office today at 972-492-8500.