Home insurance, also universally called hazard insurance or homeowners insurance (often shortened in the real estate industry as HOI), is the type of property insurance that covers private homes. It is an insurance policy that merges different personal insurance safety measures, which can consist of losses taking place to one's home, its contents like properties and assets, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.
The cost of homeowners insurance often depends on what it would charge to replace the house and which additional riders or additional items to be insured are included in to the policy. The insurance policy itself is a prolonged contract, and names what will and what will not be paid in the case of various events.
Typically, claims due to earthquakes, floods, "Acts of God", or war (whose definition typically includes a nuclear explosion from any source) are not covered within the policy. Special insurance can be purchased for these possibilities, which includes flood insurance and earthquake insurance. Insurance must be updated to the present and existing value at whatever inflation up or down, and an appraisal paid by the insurance company will be added on to the policy premium.