If you are planning to purchase a home, you will need to purchase a homeowner’s insurance policy if you plan to have a mortgage. The mortgage company will require the policy to protect its interest if the home was destroyed. However, homeowner’s insurance policies do not cover all loses even though premiums are increasing. The amount of the premium and the coverage will depend on the insurance policy and the type of contract you purchase.

For more information about what homeowner’s insurance may or may not cover read, “Covered by homeowners insurance? Don’t be so sure.”