Normally abbreviated in the real estate industry as HOI, Home Insurance protects a policy holder's name.

There is contents insurance, where the contents of an individual's home are insured against theft, vandalism or damage. this is also referred to as property insurance.

However, this is different from a mortgage insurance, which pays the outstanding balance of a mortgage in full if the client dies.

Lender require that the home owner is perpared and insurance is not optional. All lenders require fire, theft and liability insurance. However, the type of coverage and amount a client pays does vary.

A home owner's policy provides two types of protection. The first is casulty insurance or hazard insurance. The second being personal liability.

With casualty or hazard insurance, the individual is covered for losses, damage caused by fire, theft, and certain weather related hazards.

Personal liability protects the homeowner from being sued when someone is injured on their property. Family members may also be covered when they are away from home.

The types of insurance differ. HO-1 is a basic policy. HO-2 is a broad form, HO-3 is all risk form whereas HO-4 is a renter's policy, protecting their possessions.

HO-5 is comprehensive, and covers HO-3 and more. The last is HO-6. This is condo or co-op. According to the Insurance Information Institute, 8 out of 10 homeowners have too little insurance.

Be sure to have enough coverage in case something does happen.