Homeowners insurance covers a variety of risks to a homeowner, including damage to the property and the belongings within it, as well as liability coverage in the event that someone else is injured on the property.

It does not include coverage for flood or earthquake damage, so people living in areas where that might be a problem will need to find a separate policy for those coverages. Homeowners insurance is highly advisable for any homeowner, and most mortgage lenders will require it.

It covers damage to the property from nearly everything except flood, earthquakes, and “acts of God.” It also protects the insured from liability if someone is injured on the property and wants to sue. If you have a mortgage loan, chances are your lender will require you to have homeowners insurance, which is also sometimes just called home insurance. Otherwise you are not required to carry it.

Fires and wind damage are generally covered, as well as theft. The home itself will be covered, as will the possessions within it, such as furniture and appliances, up to a limit, which is generally about 50% of you total coverage amount.