Householders insurance is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.

The cost of homeowner’s insurance often depends on what it would cost to replace the house and which additional endorsements or riders are attached to the policy.

The insurance policy is a legal contract between the insurer) and the named insured(s). It is a contract of indemnity and will put the insured back to the state he/she was in prior to the loss.

Typically, claims due to  war (whose definition typically includes a nuclear explosion from any source) are excluded from coverage, amongst other standard exclusions (like termites). Special insurance can be purchased for these possibilities, including flood insurance.

Insurance is adjusted to reflect the cost of replacement, usually upon application of an inflation factor or a cost index.