Which of the following best describes a homeowners insurance policy?

A homeowners insurance policy provides comprehensive coverage that includes not only protection for the physical structure of the home itself (such as damages from fire, wind, hail, and other perils) but also covers personal property within the home, such as furniture and electronics. Additionally, homeowners insurance includes liability coverage, which protects the policyholder against claims for bodily injury or property damage that occur on their property or as a result of their actions.

This dual coverage aspect—protection for both the physical dwelling and personal liability—distinguishes homeowners insurance from other insurance types that might focus solely on one aspect, such as only covering liability or only addressing structural damage. The design of the policy aims to provide a more holistic approach to protecting individuals and families within their homes, making it suitable for anyone who owns a residence rather than being limited to only rental properties or personal injury liability.