Homeowners insurance is required by essentially every mortgage lender, and for good reason beyond the requirement itself — it protects what is likely your largest financial asset. A standard policy generally covers the physical structure of your home, your personal belongings, liability if someone is injured on your property, and additional living expenses if your home becomes temporarily uninhabitable due to a covered event.
It's important to understand what a standard policy typically does not cover: flood damage and, in many areas, earth movement or earthquake damage are usually excluded and require separate policies. Whether you need flood insurance often depends on your property's flood zone designation, which your lender may require you to check and, depending on the zone, may require you to carry.
Wind and hail damage coverage also varies significantly by region — in some coastal or high-risk areas, windstorm coverage may be excluded from a standard policy and require a separate rider or policy, which is worth confirming directly with your insurance agent rather than assuming it's included.
When comparing policies, it's worth looking beyond the premium alone at the deductible (what you pay out of pocket before coverage kicks in) and the coverage type — replacement cost coverage generally pays what it actually costs to rebuild or replace an item today, while actual cash value coverage factors in depreciation and typically pays less.
It's genuinely worth getting quotes from a few insurers rather than accepting the first one, since premiums for comparable coverage can vary meaningfully between companies for the same home. Reviewing your policy annually, especially after major renovations or purchases, keeps your coverage aligned with what you'd actually need to rebuild or replace.