Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the possessions within the home.
Homeowners insurance is a package policy. This package covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. This coverage even includes damage caused by household pets.
Damage caused by most disasters is covered but there are exceptions. The most significant are damages caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the homeowners’ responsibility.