Homeowners without home insurance tend to think about this issue during a period in the area where they live that is prone to natural disasters. However, home insurance is something that has a wide range of coverage and should seriously be considered by every homeowner. Ideally home insurance should be secured as soon as one becomes a homeowner.

Let’s start first by defining home insurance. It is an insurance policy that covers or protects the home owner against losses occurring to the home, it’s contents, loss of use or loss of personal possessions. Liability insurance protects against accidents that may happen in the home. Home insurance is also commonly called hazard insurance or homeonwers insurance (HOI).

The cost of homeowners insurance is usually dependent on what it would cost to replace the house and any additional items covered in the policy. There are common perils that are covered in typical insurance policies which include: fire or lightning, windstorm, theft, vandalism, damage from vehicles, volcanic eruption, personal liability.

A home is the biggest investment that most people will ever make and needs to be protected against a number of events that can cause major loss. Homeowners insurance provides that peace of mind to the homeowner, knowing that he/she will be compensated for that loss.