Homeowners Insurance, also known as HOI or Hazard Insurance, is a system where millions of homeowners each contribute monthly payments to one large pool of funds. This pool of capital gradually built by millions is then used to repair, replace, or rebuild homes damaged by unfortunate circumstances or disasters.

By definition, insurance is an exercise in risk management. For example, not everyone will suffer through a fire that burns their home down their lifetime. For the unfortunate few that do, however, the financial hardship is immense. Because payments are collected from millions but

HOI essentially purchases the peace of mind knowing you can rebuild or replace if your home is

Just like other insurance segments (e.g. auto, electronics, etc), monthly payments are called “premiums” and companies who receive the premiums & orchestrate policies are called “carriers”.

Encompasses deductibles, coverages, maximums, exclusions, and lender requirements to protect against unforeseen damages.

Important Insurance Terms Decoded:

• Premiums

• Carriers

• Deductibles

• Coverages

• Maximums

• Exclusions

• Perils

• etc