Home Owner Insurance Basics 

Homeowners insurance is a package policy. It provides financial protection against various perils. A standard policy insures the home, with attachment and the personal property you keep in it.

Home owner policy covers both damage to the dwelling (or construction), your property and your legal responsibility to other people, for any injuries and property damage you or members of your family may cause. This includes damage caused by your negligence, disasters or household pets.

Damage caused by most disasters like floods, earthquakes and windstorms are not a part of standard homeowner insurance package, but it can be added as an additional coverage, or you can purchase a separate coverage to such causes.
Poor maintenance is covered but there are exceptions. Most significant damage caused by maintenance-related problems are the homeowners' responsibility.

You can purchase fire policy only (DP1), or Fire Policy with Liability. Usually Fire policy is all that required by mortgage finance company. Tenant occupied properties are usually carry Fire and Liability only.