Basic insurance, also known as ‘named perils insurance’, covers specific risks explicitly listed in your home insurance policy.  It’s the most affordable policy option but provides narrow coverage because it only protects against a limited set of perils—those specifically named in the policy.  Here’s what it covers:  Protection for the structure of your home against specific perils. These might include:  Shields you from lawsuits arising due to incidents on your property.  Some scenarios it will cover:  Most personal liability insurance policies default to $100,000 in coverage, however, it’s generally recommended to carry at least $1 million in personal liability coverage on your home insurance policy but limits up to $5 million are available.