Homeowner's insurance is a form of property insurance that covers losses and damages to your residence, along with furnishings and other assets in the home. Homeowner's insurance also provides liability coverage against accidents in the home or on the property. A homeowner's insurance policy usually covers four kinds of incidents on the insured property: interior damage, exterior damage, loss or damage of personal assets/belongings, and injury that occurs while on the property. When a claim is made on any of these incidents, the homeowner will typically be required to pay a deductible.