• Homeowners insurance is a signature product in the insurance market since it is purchased to protect a home, which is the most valuable asset most people own. Home insurance typically includes coverage for property liability, building damage and replacement, and building contents, according to the Business Dictionary. Homeowners sometimes share some common complaints about insurance providers or the buying process when dealing with homeowners insurance.
  
  

Claim Payment Avoidance

• One of the most common complaints homeowners have about home insurance providers is their reluctance or unwillingness to pay out on claims, according to the Consumer Affairs "Consumer Complaints About Homeowners Insurance" section. Most homeowners never file a claim using their insurance policy. However, home insurance is an important protection product because damage from fires, storms or other natural disasters can cause very expensive damage to your property. Consumer Affairs indicates that home insurance providers often create such a hassle in the claims process that you should consider hiring a lawyer before calling your home insurance adjuster when an event occurs.
  
  

No Flood and Earthquake Coverage

• Homeowners who buy homes in flood-prone areas need to be aware that flood insurance is not covered in a standard homeowners policy. The devastation of Hurricane Katrina in 2005 brought this issue to the forefront in the United States. The same is true of earthquake damage, which is not usually covered under a typical policy, according to the Insurance Information Institute. Homeowners who do buy in a floodplain are likely to spend around $400 per year on premiums for a flood insurance policy. Earthquake insurance plans vary greatly by region, with areas like California more costly because of the increased likelihood of an earthquake.
  
  

Nonrenewals and Rate Hikes

• Homeowners sometimes fear extravagant hikes in interest rates, or even the potential for nonrenewal on policies, if they file a home insurance claim. In its "California: Insurance Commissioner's Scare Tactics Hurt Insurance Consumers," the National Association of Mutual Insurance Companies cites independent studies in 2002 to 2003 that appeared to show numerous "arbitrary" rate increases and nonrenewals for California homeowners. Personal Insurance Federation of California President Dan Dunmoyer defended statewide insurance providers by indicating that data maintained by the insurers showed a small percentage of nonrenewals and rate hikes. He added that these actions were mostly due to nonpayment by homeowners and untimely completion of insured repairs. Homeowners expect reasonable notification of proposed rate hikes and nonrenewals, and believe it is unfair to receive major rate increases for single claims.