Buying a home is never financially easy, especially when you’re young. But one of the things that makes it worthwhile is the fact that — unlike with a rental — the money you spend on it becomes an investment. That’s why homeowners’, or hazard, insurance is so important.

Without insurance, if your home is damaged or destroyed, you lose the place you live in, as well as whatever it’s worth. But if you have insurance, you’ll be able to rebuild both your home and the financial security it provides.

Even if you don’t think insurance is a good idea, you can’t avoid it, because lenders require you to have it. That way they’re protected from any loss, especially in the early years of a mortgage when most of the investment — and the risk — is theirs.

How does insurance work with condos and co-ops? Click here for the answer!