Home insurance is a type of property insurance that is designed especially for private homes, with a number of coverage levels available for use in different circumstances. There are five well recognised categories of coverage represented in home insurance policies, with some contracts including one or two levels and other containing all five. The scope of coverage provided by each individual contract has the biggest influence on the price of individual insurance premiums, along with any additional protective requirements and contextual risk factors associated with location and insurance history.

Each home insurance policy has five classifications of coverage: the home or dwelling itself, any other structures based close to the main property, any personal property attached or stored within the property, the loss of living expenses as a direct result of the property, and any additional coverage listed in a per contract basis. Some of this additional coverage may include repair damage, fire department expenses, and building collapse, among others. Liability insurance is also included in many home insurance contracts, in the case of any legal loss that takes place within or around the insured property. However, despite this wide ranging level of coverage, most people are concerned primarily with the protection of their home and its possessions.

Obtaining home insurance is the best way to protect your assets on a daily basis, as most people store their possessions within and around the home. While basic and basic broad home insurance contracts may not provide any protection in the case of the loss or theft of possessions, common special form homeowners policies and premium home insurance policies all provide coverage for listed or unlisted possessions. Some home insurance contracts may require you to list any possessions you want to be covered, while others may provide blanket levels of coverage without any specific listing requirement. Like all forms of insurance, it is always a good idea to compare and contrast as many different types of policies as possible before making your final decision.