Home insurance is one of the most important types of insurance, covering damages to a private residential property as well as any liability claims that may arise from the same property. In some ways it is like auto insurance, because a single premium covers both kinds of risks. Unlike car insurance, however, homeowners insurance also need to cover damage by natural disasters like flooding and hail as well as accidents like fires and explosions. Damage due to natural disasters is not covered by most standard home insurance policies and coverage must be purchased separately by the homeowner.

What does home insurance cover?
Home insurance is also often known as homeowners insurance and covers private residential property. Somewhat like automobile insurance, it covers damage to the property as well as any liability issues arising from the property. A single payment covers both kinds of risks. In terms of property damage, it covers the home as well as its contents.
In terms of liability coverage, it includes any damage that might be caused by the home, for example, injuries suffered by someone slipping on a sidewalk or a dog bite. Insurance companies have some exclusions, so standard home insurance policies will not cover many natural disasters or damage caused by war. Renters insurance works in the same way, but covers the person renting a property rather than the owner.

Shopping for a home insurance policy
Also like auto insurance, it is possible to shop for the best home insurance policy for your needs. It’s possible to do this online, comparing the coverage and premiums offered by different insurance companies. It can be important to find an agent or broker whom you can trust to provide you with clear and accurate answers about different policies as well as claims procedures.
Many insurance companies offer discounts for safety features like installed home security systems, fire and smoke detectors, and sprinklers. Most home insurance policies do not cover flood damage, and homeowners worried about the possibility must purchase additional coverage.

Like auto insurance, homeowners insurance is a necessary condition for owning a home or even getting a mortgage. When purchasing home insurance, it’s a good idea to do some research and understand the different types of coverage and to shop for the best prices. Many insurance companies offer discounts for extra security and fire safety measures.

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