We pay a lot of money to buy a house to live in. In almost 90 percent of people buying homes, they get it mortgaged to the loan payer. And when mortgage is taken for a home, the mortgage lender includes a home insurance policy which is a must. It includes losses to the home or its contents or its use. If anything happens to the house, and if it is insured, then the owner can make claims and get paid for the loss. Home insurance is also called hazard insurance or homeowners insurance (HOI) and is a property insurance that covers private homes. There can be damage to the house due to a fire, due to theft, if a tree falls on it, or if there is an accident or if there is an earthquake or flood, war or a bomb explosion. In all such cases there is considerable loss of invaluable stuff besides the house. Or your valuables may be stolen which may have cost you quite a bit. Hence it is very important that you buy a home insurance policy to protect your home. When you buy home insurance, it is for a specific period of time and it is for a specific amount. Based on this, you have to pay premiums at regular intervals as home insurance is a contract signed between the insurer and the insured. The premium also depends on various factors. If your house is near a fire station, the chances of it burning down are obviously less. Hence your premium will also be less. If you have smoke detectors and fire extinguishers at home, again the risks are pretty less due to fire spoiling your house. However there are many insurance insurers who do not insure for floods or earthquakes and natural disasters. You have to find out what the policy includes, what are the insured items and what are not. There is always a big list of items which can or cannot be insured. The home insurance policy has to be updated at regular intervals and the value of the items insured updated. Also there can be an appraisal by the insurance company before the policy is issued. In the US, before the 1950s there were different policies issued for different insured items. After the 1950s a comprehensive insurance policy has been formed which covers a standard list as it was found necessary to standardize.