First we start with home insurance definition:
Home insurance = homeowners insurance, is an insurance policy (equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care) that combines insurance on the home, its contents, and, often, the other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

The cost of homeowners insurance scales upward depending on what it would cost to replace the house, and which additional "riders", meaning additional items to be insured, are attached to the policy. The insurance policy itself is a lengthy contract, and names what will and what will not be paid in the case of various events. Typically, claims are not paid due to earthquakes (shaking of the ground), floods, "Acts of God", or war (whose definition typically includes a nuclear explosion from any source). Special insurance can be purchased for these possibilities.



"Acts of God" like Katrina hurricane