Home insurance, also known as homeowners insurance is one of the most common and important types of insurance plan available. A home insurance plan is a contract between a home owner and an insurance company guaranteeing reimbursement in case of anything happens with the home, its contents and in most of the plans, other personal possessions related. On this type of insurance plan, costs are directly depending of the costs of the home and the other related items that will be included on the insurance. All such items are described in a lengthy list in the home insurance policy, as well as the items that will not be covered in the case of any events.
Itís important to emphasize that the great majority of home insurance plans donít cover what are called natural events, such as earthquakes, floods or hurricanes. Policies also donít cover damages due to war events, with some places even including a category that excludes coverage in case of nuclear catastrophe. The premium also depends of the probabilities of each event to happen. For instance, if a home is placed near to a fire station, the premium for damages due to fire is lower.
In the USA, where is very common to borrow money as mortgage when buying a property (specially a home), home insurance plans are also very common, as most mortgage lenders require the homeowner to sign a home insurance plan. This combination helps mortgage lenders to protect the money used for the home in something happens. The American insurance companies also use six different types of home insurance plans, each one used for a specific case. Some home insurance policies distinguish what items of the home would be covered, what kind of events will and will not be covered. Some policies are designed specifically for home, while others are applicable for condos or apartments as well. They also vary substantially about the costs.