Home insurance or some call it household insurance is a type of insurance that covers the losses of your house content due to crime, fire or others natural disaster.

For example, you may insure your household content for a total of $30,000.00 against fire for a period of a year.  Once the premium paid, if your house caught fire and destroy the content in the house, you are allowed the claim $30,000 from the insurance company. Of course this is still subject to the approval from the insurance company after going through all the investigation process.

It is a fix term insurance where you pay a fix amount of premium in return for a sum of money paid to you in the event of loss of assets due to crime, fire or others natural disaster. It is a yearly renewable insurance.

It is worth to mentioned here that natural disaster or act of god is usually an optional insurance on top of the general home insurance, since it may not happened in certain area depending on location ( If you are staying at hilly area, you don’t need a flood insurance coverage, If you are not staying at the earth quake belt, you don’t need an earth quake insurance ). Others optional insurance including war and riot.