Home Owner's Insurance

Home insurance, or homeowners insurance, is an insurance policy which combines insurance on the home, its contents, loss of use (additional living expenses) and, often, the other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

In this section we try to bring as much information possible regarding Homeowner's Insurance and the different aspects of the same. The following sections will cover most of what you really need to know about Home Owners insurance.

The cost of homeowners insurance scales upward depending on what it would cost to swap the house, and which additional "riders", meaning additional items to be insured, are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims are not paid due to earthquakes, floods, "Acts of God", or war (whose definition typically includes a nuclear explosion from any source). Special insurance can be purchased for these possibilities, including flood insurance and earthquake insurance.

The home insurance policy is usually a term contract, that is a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, or if the house is equipped with fire sprinklers and fire alarms. Perpetual insurance, which is kind of home insurance without a fixed term, can also be obtained in certain areas.

In the United States, most of home buyers borrow money in the form of a mortgage, and the mortgage lender always requires that the buyer purchase homeowners insurance as a condition of the loan, in order to protect the bank if the home were to be destroyed. Anyone with an insurable interest in the property should be listed on the policy.

Back

Keywords:

Insurance,Insurance Companies, Types of Insurance, Home Owner's Insurance, Car Insurance, life Insurance, general insurance, Disability Insurance, Home Insurance, Motar Insurance, Medical Insurance, Term Insurance, Travel Insurance, Unemployment Insurance, Farmer Insurance