Home insurance is a contract between a home owner and insurance company in which the homeowner pays the company a premium in return for the company's guarantee to assume some or all of the risk of loss. Homeowner's insurance is a way for homeowners to protect themselves from calamities and disasters which may impact the structural integrity or livability of a house or home. Also referred to as homeowners insurance, a policy typically covers unintentional damage caused by fire, smoke, wind, hail, theft, vandalism, or another similar event. In certain geographic areas, due to topography or naturally occurring severe weather conditions, additional coverage for hurricane and water damage or flooding is required or available. Another important element of home insurance is liability coverage which protects a home owner against expenses associated with personal injury lawsuits or medical bills incurred by someone injured on your property. Typically home insurance is a legal requirement, imposed by lenders, for a home loan or mortgage.

Another type of home insurance is renter's insurance which protects personal belongings while renting a dwelling. While a landlord carries home insurance for protection of the structure, a tenant carries home insurance or tenant insurance for protection of their personal effects within the dwelling.http://www.insure.com/articles/homeinsurance/basics.html