A home insurance policy provides you with protection against the risk of loss for your structure as well as its contents. A home and its contents are among the biggest investments one usually makes; and therefore a loss of a home due to a calamity or its contents can cause a major financial setback in addition to the hardship of not having a home.
These days many homes and major purchases are bought through loans and mortgages. A loss of home and its contents can cause additional burden if in addition to replacing the contents, one has to repay the loans outstanding as well. Insuring your home and its contents provides you with the certainty that your home can be replaced and your family protected.
Many Insurers today require that suitable home insurance is taken for any home that is purchased with a home mortgage or against which a loan has been taken.