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The insurance policy is usually a term
contract a contract that is in effect for a
fixed period of
time. The payment the insured makes to the insurer is called the
premium. The insured must pay the insurer the premium each term. Most
insurers charge a lower premium if it appears less likely the home will be
destroyed. if the house is situated next
to a fire station, or if the house is equipped with fire sprinklers and fire
alarms. Perpetual insurance, which is a type of home insurance without a
fixed term, can also be obtained in certain areas.