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Insurance is there to protect you and your property. However, sometimes it’s hard to know the reason you need insurance. Besides the fact that to get a mortgage you often need insurance, there are many ways that insurance protects you as a homeowner. In fact, it’s hard to imagine being a homeowner w

Reduce Liability

As a homeowner, there are several incidents that you will take responsibility for. If there is a piece of your property that injures another person, you are expected to take responsibility. Accidents happen, no matter how careful you are. That’s the point of insurance. But sometimes things happen to other people on your property, and they hold you legally at fault. Insurance helps protect you in these cases.

That isn’t the only way it reduces liability. Home insurance also helps protect other people. If someone gets injured on your property, your home insurance can help cover their medical bills. Just remember to do regular maintenance on your home—accidents traced back to accidents may not be covered.

Damage Restoration

Do you ever wonder what you would do if your house went on fire? Home insurance helps with that. If a fire starts in your house, home insurance can pay for repairs. In the absence of serious damage, a house fire can leave you dealing with other consequences that require cleanup. You might have smoke damage, for example. Home insurance helps pay for these repairs.

Even if there isn’t a serious disaster that does serious damage to your home, home insurance can also cover other repairs. This includes things like sheds, fences, and furniture.

In the case of natural disasters, it’s worth it to look into what disasters happen in your area. Examine whether your insurance covers that particular type of damage. For example, sometimes it is necessary to not only get home insurance, but to get flood insurance as well.

Additional Living Expenses

Sometimes a natural disaster or a fire will keep you from being able to live in your home until repairs are finished. Most people cannot afford to pay for a surprise stay in a hotel for a week or two. Home insurance covers these costs through additional living expenses coverage (or ALE). If this situation ever comes up for you, remember to ask your insurance company questions about what is covered under the category of ALE.

It’s hard to imagine being a homeowner without the extra peace of mind that home insurance can provide for you. Hopefully this list helps you understand that home insurance is not superfluous—it’s an important part of being a homeowner.

Read this next: Why Many Families Go Underinsured and Why It’s Risky