If you do not own your home outright then the mortgage or lean holder does and they will insist that theirinvestment is secured through a home insurance policy.  If you do not provide one then they have toright to choose one at their discretion without any regard as to rate or policycost.

So what are the advantages tohaving home owners insurance?

First and foremost home insuranceprotects both the house and your property in the event of catastrophicevents.  The policy could be set up topay out a cash value for the home depending on its current market value or itcould replace the house exactly as it was no matter what the current cost is torebuild.  Secondly any and all propertythat you had in the house at the time of the incident which was destroyed orlost can be fully covered and a cash settlement awarded so that these items canbe replaced.  The policy can be set up sothat any ?specialty items? such as collectables (comics, figurines, etc.),jewelry (family heirlooms, expensive pieces) or art work can be replaced orrepurchased.

If you have a rental property orrent (or lease) yourself you can also protect your property from loss due totheft, fire or negligence (water left running in the apartment above that soakthrough to your apartment).

Home insurance also protects thepolicy holder against damages to other individual's property or person. 

What can affect the price of thehome insurance policy?

What construction material of thehouse.  Wooden framed houses usually havehigher cost policies than those constructed of brick.

How old the house is- Insurancecompanies may not even insure a house that is too old, or at best, only offer apolicy that has severe limitations attached. On the other hand, newer houses often qualify for discounts and fullreplacement coverage.

What is the available local fireprotection like?  Things such as thedistance of your home from the hydrant and the quality of the local firedepartment play a significant part in the classification of the policies fireprotection.

Both the amount of coverage youwant and the amount of the deduction both play a significant role in the costof your home insurance.  The more youwant covered and the less deductable you want to pay, higher the monthly costof the policy.

Buyer purchased safety measures canreduce the cost of your home insurance policy. Most companies offer substantial discounts if the policy holder installsa fire and/or burglar system.  Also somehome improvements can both add to the value of your house and simultaneouslylower the insurance policy rates.

Home insurance can be tailored tofit the particular requirements of the buyer and before any decision is made itis strongly advised to shop the market for the best rates for the coverage youwant.  Remember not all insurancecompanies offer the same protection options.