Perhaps you know someone who has suffered significant material damage from a home invasion. Homeowners insurance offers protection against damage caused by theft, whether it be damage to the structure of the house itself, damage to the contents, or theft of the contents.
Homeowners insurance covers damage to people and property not covered on your policy when accidents occur on your property. This is also extended to include coverage of accidents occuring in the space adjacent to your property. The coverage pays for legal fees, medical bills, and material damage caused by the accident occurring on your property.
Fire damage to your home and its contents is covered by homeowners insurance. These days, we hear about devastating stories on the news too often. If a fire occurs, you will have protection from catastrophic loss.
Many mortgage lenders, including banks, will not grant a home loan unless the property owner has homeowners insurance. Logically, the lender also wants to protect the investment.