A form of property insurance designed to protect an individual’s home against damages to the house itself or to possessions in the home. Homeowners insurance plans also provide liability coverage against accidents in the home or on the property. Some scenarios are not covered by homeowners insurance, such as earthquake, flood, and war. You can, however, add extra policies to your homeowners policy to cover these catastrophes. Renters insurance is a form of homeowners insurance and it only covers possessions within the home and isolated events not covered in the property insurance held by the owner.