What is the primary purpose of homeowner's insurance?

The primary purpose of homeowner's insurance is to protect personal property and liability. This type of insurance provides financial coverage for damage or loss to the physical structure of a home, as well as for personal belongings inside it, such as furniture, electronics, and clothing. Additionally, homeowner's insurance often includes liability protection, which covers legal expenses if the policyholder is found responsible for injuries or damages to other people or their property while on their premises.

This comprehensive protection is crucial for homeowners, as it safeguards their investment in the home and personal assets, ensuring peace of mind in the face of potential risks like theft, natural disasters, or accidents. Other options, such as insuring the mortgage or covering business-related expenses, do not align with the primary focus of homeowner's insurance, which centers on residential property and the associated risks.