Home insurance is a kind of property insurance for a private residence. It provides financial protection against losses occurring to one’s home or additional living expenses, as well as liability insurances for accidents that happens at home. Some home insurance also provides financial protections against disasters.
Home insurance provides both property and liability coverage with an indivisible premium. It means only one premium is paid for all risks. It covers both damage to the policyholder’s property and liability for property damage caused by the policyholder or his/her family members to others.
The price of home insurance depends on many factors, including location, cost to rebuild the home and so on. For example, prices may be lower if the house is next to a fire station or is equipped with fire alarms; if the house has a security system and has locks that the insurers approve installed.