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Homeowner's insurance is a type of insurance policy that indemnifies a homeowner against various losses. A homeowner's insurance policy can cover only named perils, such as hurricane, or fire, or earthquake, or all perils. In a flood prone area, for example, it may be difficult for the homeowner to get homeowner's insurance coverage against flooding. Typical homeowner's insurance coverage levels include cash value and replacement cost value for both the home and contents. Cash value is less effective homeowner's insurance. With a cash value homeowner’s insurance policy, the payment on a complete loss may be insufficient to replace the home. Homeowner's insurance may include liability coverage against injury to a guest while on the premises. Factors that influence homeowner's insurance policy premiums include coverage types; losses covered; loss deductibles; and the structure's age, type, and location. Renter's insurance is similar to homeowner's insurance, but provides coverage to the tenant for possessions only. |
