Homeowners insurance is a type of insurance policy that protects homeowners from financial losses due to damage to their property or personal belongings. It typically covers risks such as fire, theft, and certain natural disasters. Additionally, it may provide liability protection if someone is injured on the property. Most policies include coverage for the structure of the home, personal items, and additional living expenses if the home becomes uninhabitable. Homeowners insurance is often required by mortgage lenders and helps ensure that homeowners can recover from unexpected events without facing significant financial hardship.