Homeowners insurance is a type of insurance contract which is designed to protect the homeowner (not tenant) from sudden and accidental direct physical loss to structure, contents, and even liability when guest injuries occur at the home. 

We can best understand homeowners insurance by explaining what losses are not covered, rather than those which are covered. The most common claim denial letter that we see is one where there is wear and tear or age-related deterioration. The homeowners insurance policy is not a maintenance policy. If your roof is old and needs replacing, do not wait for the next storm to come in with the hope that the insurance company will replace it. Those days are over. The second most common loss which is excluded from coverage is rain damage. Flood insurance may cover rain damage to both contents and structure, whereas homeowners insurance HO3 will not.

When looking to change insurance carriers, the devil is in the details of the policy. Each company writes up their policies differently depending on claims experience. Many carriers do not cover earthquakes and flood. Many carriers also settle their claims at Actual Cash Value rather than Replacement Value.