What does homeowner's insurance protect against?

Homeowner's insurance primarily protects against a variety of risks that could cause damage to the physical structure of the home and the personal belongings within it. This includes coverage for natural disasters such as fire, storms, and certain types of water damage, depending on the policy. Additionally, homeowner's insurance provides liability protection, which covers legal expenses and damages if someone is injured on your property or if you inadvertently cause damage to someone else's property.

The inclusion of natural disasters in the protection is essential, as different policies may cover different events—like floods or earthquakes—depending on the geographical location and the specific terms of the policy. Liability claims are equally important; they protect the homeowner from potential lawsuits stemming from injuries or accidents that occur on their property.

Other options, such as loss of income, negligent acts, and property market losses, are not typical protections provided by standard homeowner's insurance. Loss of income may fall under separate disability or business insurance, negligent acts are usually not covered unless specifically included in the policy, and property market losses pertain to fluctuations in real estate value, which are not insurable risks under homeowner's insurance.