Homeowners insurance is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Additionally, homeowner's insurance provides financial protection against disasters. A standard home insurance policy insures the home itself along with the things kept inside.
Dwelling - Pays for damage or destruction to your house and any unattached structures and buildings, such as fences, detached garages, and storage sheds.
Personal Property - Covers the contents of your house, including furniture, clothing and appliances, if they are stolen, damaged, or destroyed.
Liability - Protects you against financial loss if you are sued and found legally responsible for someone else's injury or property damage.
Medical Payments - Covers medical bills for people hurt on your property. Medical Payments coverage also pays for some injuries that may happen away from your home, such as if your dog bites someone.
Loss of Use - Pays for additional living expenses if your home is too damaged to live in during repairs. Most standard home insurance coverage pays 10 to 20 percent of the amount of your dwelling coverage.