Homeowners insurance is a form of property insurance designed to protect an individual’s home against damages to the house itself, or to possessions in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
In the United States there are several forms of homeowners insurance that have become standardized in the industry. You will hear these various forms of homeowners insurance referred to as HO-1 through HO-8.
While a typical homeowner’s insurance policy covers most scenarios where a loss could occur, some events are routinely excluded from policies, namely: earthquakes, floods or other "acts of God" and acts of war. However, for people who live in certain parts of the country, adding an extra policy for earthquake insurance or flood insurance can be a good idea to offer further home protection and peace of mind.