Homeowners insurance provides financial protection

Homeowners insurance is a comprehensive policy. This means that it covers both damage to your property and your liability of legal responsibility for injuries and property damage you or members of your family cause to other people.

Damage caused by most disasters is covered but there are exceptions such as: damage caused by floods, earthquakes, and wear and tear are usually not covered. You must buy a separate policy for flood and earthquake coverage. Maintenance-related problems are the homeowners' responsibility.