What is home insurance?

Home Insurance, or Homeowners' Insurance, compensates the insured for losses to the insured's home and possessions inside the home. Comprehensive Home Insurance also protects the insured from a third party's injury on the insured's premises and any unforeseen losses caused by storms, fire, theft and other perils provided by each policy. The price of the policy will depend upon the types and limits of coverage purchased. Lenders often also require Home Insurance as a requirement for mortgages.

What Does Home Insurance Cover?

Every home insurance policy is different, but standard policies provide some or all of the following:

  • Broad coverage for damage to the insured's house and any permanent structures on the insured's property, unless otherwise excluded in the policy.
  • Damage to the insured's personal property due to causes specified in the policy.
  • Limited coverage for valuable items like jewelry. Coverage limits vary by state.
  • Additional coverage for other valuable items and perils (i.e. earthquake) can be purchased by endorsement at additional costs.