Beginner’s Guide to Homeowner’s Insurance

Beginner’s Guide to Homeowner’s Insurance

What is Homeowner’s Insurance?

Homeowner’s insurance is financial protection that covers damage to your property and legal responsibilities for potential injuries or property damage that occur at a home residence.  Most lenders require a level of homeowner’s insurance with a mortgage to ensure damages or accidents will be repaired or settled in a timely manner.

There are multiple policy packages offered for homeowner’s insurance.


What You May Want Your Homeowner’s Insurance to Cover


Damage to the exterior and interior of your home. 
Most basic homeowner’s insurance policies provide this coverage which is essential to have in case of events such as a fire, water damage (floods are classified differently), hurricane/lightning, or other disasters.


Loss or damage to personal belongings. 
Items such as major kitchen appliances, furniture, and clothes will typically be covered under this line of your homeowner’s insurance policy.  Some personal belongings may have an insured limit if they’ve been lost and taken outside of the home, i.e. jewelry. 

Tip:  Make sure to itemize the value of your possessions when you first move into your home and add items you include into your home to keep your policy current.


Personal liability.
Some homeowner’s insurance policies offer liability coverage to protect your family from fault for damages or injuries that may occur on the property.  Not all liability coverages offer the same amount—make sure your family is covered for the right amount.


Flood and Earthquake Insurance is Different

Basic homeowner’s insurance policies will cover the majority of a home and family’s needs.  However, if a residence is in a flood/hurricane zone or one with a history of earthquakes, earthquake or flood insurance should be an additional consideration.


American Eagle Credit Union is partnered with TruStage—a great resource for purchasing homeowner’s insurance with savings as a credit union member. 

Interested in beginning the homeowner process?  Contact one of our mortgage loan officers at or call 1-877-269-4179.

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