Homeowner's insurance

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 ?
Your principal residence is probably a valuable asset, so you should be confident your homeowner's insurance can protect you against multiple perils.
Senate Bill 442 would require all homeowner's insurance policies that do not provide flood coverage to explicitly state so by providing written notice to the insured, and SB 443 would extend the disaster relief homestead exemption from two to five years.
Financial technology companySmartAssetgathered data on closing costs, real estate taxes, homeowner's insurance and mortgage rates relative to income.
In a press release, the firms said, 'By integrating with Matic, MortgageHippo makes it easy for borrowers to secure the homeowner's insurance required for a residential mortgage loan closing at a competitive price.
All three of these carriers are quite familiar with the Florida homeowner's insurance market."
Commenting on homeowner's insurance leader The Hartford, Abraham says "The company's mix of customers leaned toward an older demographic, with many promoters citing a combination of quality customer service, competitive rates and plans that were well suited to the 55-plus age group.
Homeowners of three-deckers and multi-family dwellings are being charged higher premiums for homeowner's insurance simply because the home is a three-decker.
Chapters cover recommended personal inventory and supplies to keep handy in case of emergency, homeowner's insurance concerns, how to evacuate if there is need, financial planning to take into account, what to take when evacuating by car, food and water concerns for after the storm, and much more.
To put it another way: "If you compare the percentage of the cost of coverage, homeowner's insurance is $600 per $300,000 worth of coverage, equaling .2% versus $50 for a $400 product, which is 12% of the purchase price," he says.
* Check your homeowner's and automobile policies; homeowner's insurance (and personal automobile insurance) is not meant to cover your business exposure and, in most cases, excludes it specifically.
Under this system, in effect, purchasing health insurance would be not much different from buying car or homeowner's insurance today.

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