Homeowner's insurance

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Homeowner's Insurance

Insurance that the buyer of a private residence purchases providing coverage for most damage to the residence. Typically, homeowner's insurance covers damage from fire, deliberate or accidental destruction of the home by a person, and other, similar matters. Nearly all homeowner's insurance policies exclude acts of God like earthquakes and floods from coverage, though one may buy supplementary policies to cover these eventualities.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Homeowner's insurance.

Homeowners insurance is a contract between an insurance company and a homeowner to cover certain types of damage to the property and its contents, theft of personal possessions, and liability in case of lawsuits based on incidents or events that occur on the property.

To obtain the insurance, which is based on the value of the home and what is covered in the policy, you pay a premium set by the insurance company.

For each claim there's generally a deductible -- a dollar amount -- that you must pay before the insurer is responsible for its share. If you have a mortgage loan, your lender will require you to have enough homeowners insurance to cover the amount you owe on the loan.

Homeowners insurance policies vary substantially from contract to contract and from insurer to insurer as well as from region to region. Almost all policies have exclusions, which are causes of loss that are not covered. All the coverage and exclusions of a particular policy are spelled out in the terms and conditions.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
If you are satisfied with your auto insurance coverage (see the January 2019 CPA Client Bulletin), look into that company's homeowner's policies. You also can question relatives, friends, or business associates to see if they've had good experiences with an insurer's homeowner's policy.
In most cases, homeowner's policies do not cover the expense of bringing a house up to code or meeting certain ordinances (including floodplain requirements) if the house did not meet these requirements when it was destroyed.
Standard homeowner's policies do not cover flood damage.
The law only applies to basic homeowner's policies, but it doesn't apply to claims that you would file with your windstorm policy or your flood policy.
Is flooding often covered in homeowner's policies? If not, how will that affect most Harvey victims?
The Department has received numerous complaints from consumers who have experienced cancellations of their homeowner's policies after insurers claimed that their residence had become unoccupied.
Homeowner's policies are as varied as the companies that write them, but many people just don't realize that when it comes to insuring rural property, most policies exclude coverage for added risks involved with agricultural operations.
It is important to be aware that while homeowner's policies do generally give a small amount of insurance on business inventory, there are strict exclusions for liability claims arising from any "for-profit" activities.
At the same time, homeowner's policies go one step further to cover what's inside your home.
Like Cary, you shouldn't settle for the shortcomings of the most basic of homeowner's policies. To start, you should carry guaranteed replacement coverage, an enhancement that generally adds no more than 10% to your premium.
Most homeowner's policies contain an express exclusion for liability coverage where loss arises from the "ownership, use or operation" of an automobile.
Most homeowner's policies do not cover business losses, although some companies offer a rider.

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