A standard homeowner’s insurance policy generally protects against: • Fire and lightning • Damage from hail and windstorms • Theft and vandalism • Smoke damage • Falling objects, like tree branches • Damage from the weight of ice, snow, or sleet • Frozen plumbing, heating, AC, or other household systems • Vehicles (and even aircraft) — not the vehicle itself, which is the object of auto insurance, but damage from vehicles — e.g., in the event a car runs into your home. • Riots or civil commotions • Explosions Homeowner’s insurance policies also generally include coverage for liability, personal belongings, other structures on your property like carports and fences, and additional living expenses if your home becomes temporarily unlivable. You will be required to pay homeowner’s insurance up front at closing. Future payments usually go into escrow with your monthly mortgage to ensure payment. Paying your homeowner’s insurance premium all at once and prior closing allows you to exclude that premium from your closing costs, which generally include lender and other fees for which you’re responsible, in addition to your down payment. Closing costs are generally paid in one lump sum. If you are paying all cash, you may also choose to set up an escrow account, to avoid paying large sums for homeownership costs. If you have a mortgage, one will be set up for you by the
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