Homeowners Insurance

A home insurance or homeowner's insurance policy refers to a specific type of policy that covers damages and losses to the policy holder's home or to the contents of said home. Such insurance policies also typically cover expenses incurred as the result of an inability to use the property for a period of time and include liability coverage for accidents that occur to third parties while in the home.

Typically the cost for such a policy is determined by the amount that would be required to replace the home. Riders are attached to the policy to cover specific items within the home that the policy holder also wants to have insured. These homeowner's policies do not, however, cover so-called "acts of God" (natural disasters such as earthquakes or floods) or damages to the home caused as a result of war. (Additional specialty insurance policies must be purchased to cover acts of God.) More Terms Explained