What does homeowner's insurance primarily protect against?

Homeowner's insurance primarily protects against damages to the home and personal liability, which encompasses a wide range of risks. This insurance policy typically covers the structure of the home itself, personal belongings within it, and liability if someone is injured on the property. The coverage can include protection against perils such as fire, theft, vandalism, and certain natural disasters, although specifics can vary based on the policy.

The inclusion of personal liability means that if a homeowner is found legally responsible for an injury that occurs on their property, the insurance can help cover legal expenses and any resulting settlements or judgments. This comprehensive protection is crucial for homeowners to safeguard their investment and finances.

In contrast, the other options do not accurately reflect the primary purpose of homeowner's insurance. It does not focus on the loss of real estate value, accidents in public spaces, or provide unlimited coverage for all natural disasters. Understanding these distinctions helps in selecting the appropriate insurance needed to protect against potential risks associated with homeownership.