Home insurance, also known as Household Insurance is a policy designed to cover your home and if applicable its contents against possible risks.

With most aspects of household insurance, premium is based upon factors over which you have no control. The location of property, its age, value of its contents are all fixed and there is little that you can do about it.

There are three factors, however, that can make a large difference to insurance premium and that you can affect directly. The three factors are: amount of voluntary excess, security features of your home and your claims history. Listed below is a breakdown of three factors:

Voluntary Excess If you make a claim insurer will expect you to pay first part of claimed amount, this is known as Excess. Because insurer insists that this is paid for each and every claim it is known as compulsory Excess.

Most insurers are happy to provide a discount on insurance premium if you are prepared to pay a larger part of any claim in other words, accept a larger Excess. Because this decision is up to you it is known as voluntary Excess. The amount of any discount will vary between insurers but is generally in region of 5% to 15% depending upon how much you are prepared to accept.

Home insurance is commonly taken to describe both buildings insurance, which insures fabric of your property, and contents insurance, which covers your belongings.

Basically it is a contract you make with an insurance company. You have to pay a premium and in return insurance company will pay for financial losses that are related to your property or your home during period of contract.

Home insurance, also known as Household insurance or Buildings and Contents insurance, provides protection against loss or damage of your property. Protecting this investment against fire, flood, theft and other risks is essential to ensure that you have necessary financial assistance available, so that you can carry on with life.

Home or household insurance is designed to protect and cover against possible risks you may encounter if you're a homeowner. It is split into 2 main categories, buildings insurance and contents insurance.

Buildings insurance covers structure of your building in event of natural disasters and possibly other accidental damage such as a burst water pipe.