home insurance

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Home insurance is a type of insurance that is usually required by your mortgage lending company. They want to insure that their asset will be protected in the event of damage.

Sometimes known as hazard insurance, home insurance is an insurance that covers private homes against fire, earthquake, floods, etc. It also covers loss of any possessions within the home and even accidents that happen in the home. Your insurance policy will outline exactly what is and isn't covered. It's up to you to make sure you have a solid insurance plan.

For example, a homeowner's insurance plan that covers the home in 100 MPH winds — no more, no less — is probably not a wise investment. That dog won't hunt. That's like someone spitting on your cupcake and telling you it's frosting. However, a homeowner's insurance plan that covers the home in anything up to 300 MPH winds is a good investment.

Home insurance can be purchases as a "Term" or a "Perpetual" plan. Term simply means the plan is for a fixed period of time. Perpetual means the plan is for the life of the house. Bloggers speaking about home insurance can be found at sites like homeinsurance and thehomeinsuranceblog.

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