What Does Homeowners Insurance Provide? 
A homeowners policy is a legal contract . Your part is to pay the premium . The company guarantees to pay for damages to your property , both the residence and the contents when the damage is the result of specified perils -LRB- i.e. fire , wind etc. -RRB- up to the limits of the policy . There are specific perils that are excluded , most notably , flood and earthquake . There are also limits to recovery for certain types of property -LRB- i.e. fire arms , and Jewelry . -RRB- The policy also provides legal defense and payment of claims against you for personal injury and bodily damage lawsuits . The coverage is limited by the policy declarations . There are additional coverages such as debris removal , loss of rents , and others . 