This provides coverage against property and liability perils facing homeowners. The typical homeowners insurance policy covers the structures on the property, as well as furniture, appliances and clothing, against a wide variety of perils such as windstorms, fire and theft. The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. All perils except those specifically excluded in the policy are covered.

A provision known as Loss of Use, also covers additional living expenses if the house is being restored after a disaster.

The liability portion of the policy covers the homeowner for accidental injuries caused to third parties and/or their property.

Coverage for flood and earthquake damage is excluded and must be purchased separately.