Homeowners insurance protects your home and belongings from damage, theft, and liability claims. It's required by mortgage lenders to protect their investment and yours. Your policy typically covers the structure of your home, personal property, liability if someone gets injured on your property, and additional living expenses if your home becomes unlivable. Some natural disasters, like flooding and earthquakes, may not be covered. The cost varies based on your home's value, location, and coverage level. While it's another monthly expense, it's also your financial safety net against unexpected disasters that could otherwise derail your stability.