What type of claims does homeowners insurance typically cover?

Homeowners insurance is designed to provide a range of coverages that protect policyholders from various losses associated with their home. The correct answer reflects the three primary categories of coverage most homeowners policies include: property damage, personal liability, and additional living expenses.

Property damage coverage protects the insured's home and personal belongings against a variety of risks like fire, theft, and vandalism, ensuring that they can recover financially from damage to their property. Personal liability coverage offers protection in the event that someone is injured on the policyholder's property and files a claim against them, covering legal fees and any settlements. Additionally, coverage for additional living expenses means that if the home becomes uninhabitable due to a covered loss, the insurance will pay for temporary lodging and related costs until the home is repaired.

The other choices focus on aspects of insurance coverage that are typically excluded or not standard in homeowners policies. For example, flood and earthquake damage are usually covered under separate policies or endorsements, rather than standard homeowners insurance. Health issues and personal injury claims do not fall under homeowners insurance, as these would generally be covered by health insurance instead. Lastly, structural repairs are indeed a part of homeowners insurance but do not encompass the full range of protections that the chosen answer does