Almost anything you finance requires some type of insurance these days. And when it comes to a big investment, like a house, it's a smart move to look into insurance for it. As well as knowing what types of insurance you should consider. Read on to learn what homeowner's insurance is, and how it may help protect your investment.

What is homeowner's insurance?

Just like you have car insurance to protect against damage to your car, you need homeowner's insurance to protect your house. That coverage can change depending on where you live. Be aware – most homeowner policies don't cover events like floods or hurricanes, so you may need to buy additional coverage.

Homeowner's insurance explained 

What does it cover?

When it comes to having your homeowner's insurance explained, it'll be best to discuss with the insurance provider what they are willing and able to cover. Meaning, you might have to do some shopping around. Although, your loan officer should be able to suggest an insurance company that covers what you feel is necessary. Typically, the insurance will not cover flood damage, earthquake damage and other large natural, warfare or nuclear disasters (as told by MoneyOver30). But things to note that homeowner's insurance should typically cover are:

• • Theft and vandalism
  • Weather-related damages
  • Roof damages/collapses
  • Explosions
  • Internal water damage
  • Auto and aircraft damage

Who needs homeowner's insurance?

So is homeowner's insurance optional, or do you really need it? Great question! If you're buying your home yourself without a mortgage, getting insurance is entirely up to you. However, if you are choosing to finance through a lender, chances are, it will be required. Not only is it something that helps the lender solidify their comfort in closing a loan for you, but it should make you feel better about any possibilities down the line as well. Everything goes through wear and tear after time, you know?

Good to know. What should I do now?

If you're still contemplating the homebuying process, shop around to see if there's a homeowner's insurance policy that you feel comfortable with, and fits in your budget. If you've already started your homeownership journey, talk to your loan officer. They should be able to let you know what kind would suit you best, and what may be required of your loan program.

The homeownership journey can be a tough one to navigate. Lots of terms, and required items, that you may not be familiar with. When it comes to homeowner's insurance, it's not something you want to shrug off, as it could be something that saves your home down the line. Be in the know and make sure you speak with your lender on what is actually necessary of you when it comes to insurance.

Talk to a loan officer today.