If you own a home, a homeowners policy is a necessity. If a person is injured in your home, your policy will be your first line of defense. In addition, your policy will replace items that were lost or destroyed if a disaster, such as a fire, occurs.
There are two types of homeowners policies. The first, a named-perils policy, only covers losses overtly stated in the contract. On the other hand, with an all-risk policy, coverage is provided unless a peril is explicitly excluded.