Do I or does the mortgage company decides on the type of insurance I have?

You decide on the insurance. The mortgage company collects a certain amount from you each month in order to protect their investment. The money that you pay them is then put in escrow and covers your taxes and insurance.

However, the policy is still legally yours and you might select the insurance you feel offers the best coverage at the best rates that will suit your income and degree of protection.

What does a Homeowners insurance policy cover?

There really is no "exact' coverage. While shopping around for insurance, you will notice that there are different rates in different companies and you can choose what you want for the company to cover for you by purchasing different policies. The two important areas that the insurance companies cover are: Liability and Property.

Liability insurance means that you are legally obligated to pay a certain amount of money to another person's for actions caused by you, your property or your family. Liability extends to medical payments to others for injuries caused by your family or you.

Property insurance basically covers your structures and possessions inside and at times, outside of your house.

TIP: This is the best tip that you will probably ever find - shop around. This basically means that you should do all that you can in order to find the best rates.

It is always important to remember that you should be happy and satisfied with your insurance so be very picky in this case.

Find the best deal that will suit your budget and your lifestyle. There many companies with different types of insurance. Once you have picked the company that you would like to sign up with, you now have to pick what coverage you want.

There are different policies that you can choose from. Working with your insurance agent is probably the best way to find out what is the best way to protect your house. You are the consumer purchasing the insurance, so remember that they should work with you to make you the best deal.