Homeowners insurance protects more than just the owner of the house. Generally, it protects anyone named on the policy, your spouse, residents of the home (other than renters), household employees, guests and visitors. The property insurance section of your homeowners policy protects more than just your actual home or dwelling. In most cases, your insurance company should reimburse you for damage or theft affecting your dwelling, any structures attached to the dwelling, structures on your premises that are not attached to the dwelling, personal property, loss of use of your dwelling, and liability if you or another insured are found responsible for personal injury or property damage to another.
There are a wide variety of damages, conditions, and costs that are not covered by homeowners insurance. Here are just a few examples of situations that are not covered by a homeowners insurance policy: the land underneath your home is damaged, your claim exceeds your maximum stated coverage amount, you have flood damage, you have losses related to business activities in your home, your liability results from injuries suffered by a tenant, your claim is covered by other insurance, or your claim was caused by someone else who is insured under your party.
Your homeowners policy may exclude coverage that you can purchase by adding an endorsement to your policy. Other coverage, such as flood insurance, has to be purchased under a separate insurance program. Still other coverage can be obtained by purchasing a policy that covers a broader list of perils. The cost of homeowner's insurance will depend upon the amount of your coverage, any endorsements you add to the policy, and the deductibles you choose.