What exactly is a home insurance policy? In simple terms, this kind of policy protects your house and the things and people inside it. It covers a variety of incidents which may happen to the house itself, such as destruction by a fire or vandalism; it may also cover any damage to its contents, such as loss due to theft; it may also be applicable to accidents which may occur inside the house. It would be wise to avail of one especially if your house is on the upper scale, and if you have any significant and expensive stuff stashed inside.