What type of insurance covers damage to your home and its contents?

The type of insurance that covers damage to your home and its contents is homeowners insurance.

A standard homeowners policy generally combines protection for the dwelling, other structures on the property, and personal belongings such as furniture, clothing, appliances, and electronics. It may also include personal-liability coverage if someone is injured on the property, plus additional-living-expense coverage when a covered loss makes the home temporarily uninhabitable.

Coverage depends on the policy’s listed or excluded perils. Fire, lightning, windstorm, hail, theft, and vandalism are commonly covered, while floods, earthquakes, routine wear and tear, and poor maintenance are often excluded or require separate coverage. Expensive jewelry, art, or collectibles may have special limits unless an endorsement is added.

Homeowners insurance is different from renters insurance. Renters insurance usually protects a tenant’s belongings and liability, but not the building itself; the landlord insures the structure. Another common mistake is assuming the policy should match a home’s market value. Dwelling coverage is generally based on the estimated cost to rebuild, while contents coverage is calculated separately.