Home insurance will cover damage to your property and to your assets/belongings in the event of certain unpredictable weather, fire, burglary or destruction.
Home insurance will also cover you if someone gets hurt on your property and decides to sue (although it is still your responsibility as a homeowner to ensure that walkways, sideways, etc. are as free and clear of hazards as possible). Home insurance will also take care of part-time shelter costs if you are temporarily displaced from your home.
What home insurance may not cover
Not included in home insurance is coverage for natural disasters (such as landslides and earthquakes), massive power failure, war, nuclear hazard, any bad repair or workmanship contracted on your home, and flooding.