People who obtain a loan for their home are usually required to buy homeowners insurance as a condition of approval. However, those who purchase a home outright or those who purchased one before this requirement was made need to consider buying this vital coverage.FiresThese disasters occur unexpectedly. Most homeowners think this will never happen. However, fires can start from splattering grease on a stove, tipping over a candle or having faulty electrical wiring. Whether a home is completely or partially destroyed, this part of the homeowners policy covers the cost of fixing or replacing everything damaged.Storm DamageWind and severe storms have a negative impact on homes. For example, a home exposed to tropical storms or hurricanes will likely have broken windows, doors or shingles after the storm passes. One important tip to remember about this type of coverage is that it is less expensive if the home is prepared for storms. Installing storm shutters, reinforcing the roof and buying storm windows helps lower insurance costs. Having this coverage will save thousands in home repairs after a bout of severe weather.Water DamageMold resulting from water damage is often more difficult to get rid of than insect infestations. Water leaking from pipes, collecting under the floors or seeping down the walls can create serious problems. Not all homeowners insurance policies are reasonable about covering mold that is caused by water damage. Be sure an individual policy covers this. Also, know the difference between water damage and a flood. Water damage is much less extreme than a flood. For example, four feet of standing flood water from a storm doesn't count as water damage. However, destroyed carpet from a burst pipe in a basement is covered under water damage provisions.VandalismIf a thief breaks a window, enters the home and steals all of the electronics, homeowners insurance policies cover most of the costs. The broken window is considered a product of vandalism, so it will be replaced. Stolen electronics will also be replaced at the value the insurance company determines is reasonable.LiabilityIn the case that someone is hurt on the insured's property, homeowners insurance covers any property and medical damages that result from the incident. The injured party will be compensated up to a specific amount. However, not all incidences are covered. For example, not all companies pay for dog bites by every breed of dog. Many insurance companies won't insure dogs that are classified as dangerous or bully breeds. This includes Pit Bulls, Akitas, Dobermans, Cane Corsos and several others. Always be to understand exactly what is covered and excluded under the liability clause. The importance of this can't be stressed enough in today's litigious society.