Home insurance, also known as homeowner's insurance or renter's insurance, is an essential type of residential property insurance which covers a residential property. The policy protects you against damage or loss to your home or your personal belongings if disaster strikes. It could be fires, floods, earthquakes, storms, hurricanes and other natural disasters which may harm your house. You can get various kinds of home insurance coverage, with different prices and limitations. So you should be well-aware of the requirements before buying a home insurance policy for you and your family.

Home insurance offers protection to you, your family members, home owners, tenants, business owners and other survivors. It does not cover any liability on your part as a home owner. It is very important to understand the kinds of coverage that are offered under home insurance policies. You need to decide upon the coverage that best suits the kind of dwelling you have built i.e. your personal property.

Homeowners insurance also covers your personal possessions such as clothes, jewelry, furniture, electronic equipment and other valuables. But you should know that home insurance does not include damage to your dwelling due to earthquake, fire or flood. Also, it does not cover your possessions when you are temporarily staying in another location. Home insurance is normally a written policy given to you by the insurer. You need to give a copy of your insurance application to your insurer and keep all the necessary documents for the insurance claims.

There are several factors that affect the home insurance
costs. One of them is the amount of deductible you choose from the home insurance policy. Generally, the higher your deductible is, the lower your monthly premium payments will be. Deductible varies from company to company. Most homeowners prefer to have as high a deductible as possible because this allows them to get discounts from the multiple companies.

Another factor that affects your homeowners insurance costs is the total value of your home. This means that whatever the total amount of damages to your dwelling is the cost of replacing it is also included in your homeowners insurance coverage. The more your dwelling coverage covers, the cheaper your monthly premiums will be.

Some home insurance policies specifically exclude certain dangers or perils. If your home has a certain risk that is specifically mentioned in the policy, then you should check with the insurer whether this hazard is included in your plan. Household appliances such as televisions, washing machines, washers and dryers are some of the commonly omitted risks in homeowners insurance plans. Again, you need to check with the insurer whether any of these household items are specifically excluded from your coverage. If they are, then you should pay extra for them.