Home insurance, or homeowners insurance, is an insurance policy that combines insurance on the home, its contents, and, often, the other personal possessions of the homeowner, as well as liability insurance for accidents that may happen on the premises of the insured home. Most lenders will require you to put home insurance equal to at lesser of the principal of the mortgage or the loan amount. It is important to make sure that you have adequate insurance so that in the event of a fire, theft and other perils, you are fully covered. The typical homeowners insurance policy covers the house, the garage and other structures on the property, as well as personal possessions inside the house such as furniture, appliances and clothing, against a wide variety of perils including windstorms, fire and theft. The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. This covers all perils except those specifically excluded in the policy.