Home insurance, commonly referred to as homeowner's insurance, is essentially a form of property protection that covers an individual's home. In the United States, it's estimated that almost one in every eight home owners has some form of home insurance policy. While the insurance industry is notoriously unregulated, homeowners' insurance policies vary from company to company in terms of what they cover and how they are priced.
Home insurance provides homeowners with protection for several different types of losses, such as damage to their house itself (or its contents, if the home is worth anything), and any personal property (i.e., furniture, electronic equipment, etc.) inside the home. Home insurance can also provide financial protection to homeowners against the risk of flood damage and similar destruction to the contents of the home, such as fire. Most policies will also cover the expense of replacing the contents of the home if they are damaged by fire.
The home insurance policy can also cover the cost of repairs to the home after a disaster, such as a hurricane, or natural disasters, including floods. There are several other types of protection available, including protection against theft or vandalism, but most people look at the protection of their home when they decide whether or not to purchase a home insurance policy.
The cost of purchasing a homeowner's insurance policy varies widely depending on the kind of coverage that's purchased. Home insurance premiums can also be affected by factors such as the value of the home, the level of home security, and the age of the homeowner. It's important to get estimates from several different insurance companies so that you know exactly what your premium will be, as this will allow you to compare policies, coverage levels, and other important factors to find the most cost effective policy possible.
There are many different home insurance policies that you can purchase from different companies, as well as several different types of insurance policies themselves. Some companies will only cover specific items in the home, while others will insure everything in the home, and these policies are known as complete coverage policies. A complete coverage policy will not only provide coverage for the loss of a home, but will also provide financial protection should the contents of the home be stolen or destroyed due to a fire or flood.
In general, the best way to protect yourself financially is to get as much home insurance protection as you can afford, and as quickly as possible. The longer you wait, the more expensive your insurance premiums will become, so don't skimp on your home insurance.