In the US, most people purchase a new home by getting a mortgage, and in order for the bank to protect their investment, the lender will require that the buyer purchase homeowners insurance. The standard policy includes four different coverages; structure, personal belongings, liability and additional living expenses.
Structure coverage pays to repair or rebuild your home if it has sustained damages from a fire, hurricane, hail or any other natural disaster listed in your policy. It is important to know what coverage your policy has, as structure coverage will not pay for damages caused by a flood, earthquake or normal wear and tear. In addition, personal belongings will cover electronics, clothes, and even furniture.