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Meet Emily. Emily is in the process of buying a house in the suburbs. Emily has just watched our videos: Mortgages 101 and How to Find a House and a Mortgage, so she knows exactly how to get a great home with great financing. However, she still has no idea how to get homeowners insurance. What should she do? Well, her first step is simple: before she can buy homeowners insurance, shell need to understand it. So lets start there. Like most types of insurance, homeowners insurance reduces the costs associated with a risk, in this case the risk of your home being damaged or someone being injured on your property, in return for a monthly fee called a premium, which is based on everything from your homes age to its location. As for homeowners insurance actually works, it operates through six coverages bundled together, none which are required by law, though they will be required by your mortgage lender. The first coverage is dwelling coverage, and protects the structure of the home f