Home insurance, often also referred to as hazard insurance, home-owners insurance or, in the industry, HOI, is intended to protect you financially against damage that might happen to your home, from fire and flood to accidents and criminal activity. It is intended to cover the replacement cost of your home and, with some policies, its contents. When shopping for insurance, ensure that you are familiar with the replacement cost of your home (this could be more than it would cost to buy a comparable home) and read the details carefully to ensure you will not be under-insured if the worst happens. For example:
Note that certain catastrophic disasters like earthquake and flooding are typically not covered by standard homeowners policies. In the event that these events are realistic concerns, separate policies must be taken out to cover you against these risks.