Cheap House Insurance

House or property insurance was the first commercial type of insurance to be realised. Following the great fire of London, it was quickly realised that homeowners were willing to pay a fee to a bank to cover the potential loss of their home. The first house insurance policies covered just the loss of a property due to fire. Today a house insurance policy is much more all encompassing for a variety of risks that a property might face. Standard house insurance policies tend to cover risk of loss due to fire, theft or some weather damage. A clause in most general house insurance policies is cited as an ‘act of god’ clause.

This clause means that the insurance company will not pay if there has been an extremely unusual event such as volcano, earthquake or extreme weather. There are specialized policies that do cover these unlikely events but an extra premium must be paid for them. There are other exclusions that are named on a house insurance policy so the exact cause of damage to a property must be clearly identified to the insurance company when making a claim in order to satisfy that it is covered by the policy http://en.wikipedia.org/wiki/Property_insurance.