People will avail of homeowners insurance for various reasons. By definition, homeowners insurance provides protection for your finances in case a qualified untimely event occurs that destroys your home. However, not everybody will want to buy homeowners insurance. People living in shabby houses may not want to spend for insurance because the house being insured is not worth it. On the contrary, those who spent great amounts building their luxury house may want to have insurance. Most often, if you are borrowing funds in order to have your house, your lender may require you to acquire homeowners insurance before you can have funds. In this way, your lender ensures you can pay adequately, whether or not your house will remain in good shape. Finally, those living in dangerous areas such as near fault lines, volcanoes and open seas may also want to have their homes insured before calamities happen.