What type of coverage does homeowners insurance provide?

Homeowners insurance provides comprehensive coverage that includes both property damage and liability protection associated with the home. This means it not only covers the physical structure of the house and personal belongings within it from risks such as fire, theft, or natural disasters, but it also includes liability coverage in case someone is injured on your property or suffers property damage due to your actions.

This dual protection is crucial because it safeguards homeowners from significant financial loss that could arise from both damage to their property and legal claims that may arise from accidents. Thus, the correct answer reflects the complete nature of homeowners insurance, encompassing both aspects of coverage that are central to protecting a homeowner's financial interests.