HOME INSURANCE

Home insurance (or home owner's insurance) is a type of property insurance. One's residence or home, including all its contents, is within the category of home insurance. The cost an insurer pays for a homeowners insurance policy is determined by taking into account the replacement cost of the home along with all of the home's contents.
These values are normally determined by the value of the home as dictated by the property market and what amount similar homes sell for in that area. Different cities or countries will determine this value differently.
A home insurance policy generally remains active over a specific time period, during which the insured has to pay premiums, i.e. money paid towards insurance costs every term, to the insurer (usually the insurance company).
However, home insurance that is not contracted over a fixed time period may also be obtained by the insured and is called perpetual insurance.