What is the main function of homeowner's insurance?

Homeowner's insurance serves a critical role in safeguarding the financial interests of homeowners. Its primary function is to protect against damages to a home, such as those resulting from fire, theft, or natural disasters, and to cover liability for accidents that may occur on the property. This means that if someone gets injured while visiting the homeowner's residence, the insurance can help cover legal and medical expenses arising from that incident.

Additionally, homeowner's insurance typically includes coverage for personal property within the home and may also extend to additional living expenses if the home becomes uninhabitable due to a covered peril. This comprehensive coverage is essential for homeowners to ensure that they are financially protected from unexpected events that could lead to significant loss or expenses related to their home and its surroundings.

The other options present functions that do not align with the core purpose of homeowner's insurance, such as financing the purchase of a home or facilitating the sales process, which are not responsibilities of insurance but rather associated with real estate transactions and lending.