For most people, the investment made into buying home is the most significant investment in their lifetime. In the unfortunate event that the home is damaged or destroyed without insurance, however, that investment can easily be lost. Considering this risk, it is a very wise for homeowners to obtain home owners insurance coverage, not only to protect the investment but also out of practicality. Homeowners insurance, depending on the level of coverage, can protect the insured in up to three ways: financial loss, liability, and proper shelter. Financial loss encompasses real estate property and personal property loss; liability covers injury of others within the home; proper shelter pays for alternative housing if the home is damaged in a disaster. No law requires that a homeowner has insurance – but the lender financing a mortgage can, and it is also a wise decision for the homeowner.