Replacing and repairing the things you own
What kind of damage?
A fire can burn a house to the ground. Nature can damage homes through hurricanes, tornadoes, hail storms, floods, high winds, ice, and sleet.
What else can damage a home? An out-of-control auto could end up on your front porch or in your living room. Kids playing baseball can put a ball through your window. Teenagers can vandalize the outside of your house or drive over your lawn and tear it up.
Burglars can break into your home and steal things, like electronics, art, money, or other valuables.
How it works
If your home caught fire, how would your parents replace the building and all the things in it? The “things” took years to buy. Such a loss would be more than most people could afford. That’s why people buy insurance because it will help them pay to —
Buy as much or as little as you want
People who buy homeowners or renters insurance decide how much help they want if a disaster strikes. The more help they want, the more they must pay for their homeowners insurance.
Insurance also costs more if people own very valuable “property,” like jewels, a rare violin, or a collection of antique clocks.
Most people buy homeowners insurance and then hope they never need to use it. But if something bad does happen, they will have help putting their home back together without losing all of their savings.