What types of risks are typically covered under a homeowners insurance policy?

Homeowners insurance policies are designed to provide comprehensive protection for individuals and families against various risks associated with homeownership. The correct option encompasses three primary types of coverage typically included in homeowners insurance: property, liability, and additional living expenses.

Property coverage protects the physical structure of the home and the personal belongings within it. This includes damage due to perils such as fire, theft, vandalism, and some natural disasters. Liability coverage protects homeowners against claims made by others for bodily injury or property damage that occurs on the policyholder's premises or as a result of their actions. This is crucial for safeguarding homeowners from lawsuits that could arise after an accident.

Additional living expenses coverage, also known as loss of use, comes into play when a home becomes uninhabitable due to a covered loss, providing funds for temporary housing and related expenses.

This combination of property, liability, and additional living expenses coverage makes homeowners insurance a vital financial safety net for unexpected events that could impact the homeowner’s financial stability and peace of mind. The other options fail to cover all these essential components of typical homeowners insurance, either limiting the coverage to property damage alone or excluding critical aspects like liability and additional living expenses.