A home insurance policy is what you want to have when things like damage happens to your home through acts of god, fires, and theft. Each of these things are hard to swallow thinking about, but this is a necessity in the world of homeownership (And required if a house is mortgaged). These policies are renewed yearly, and price can vary depending on the coverage— and like most other insurance policies out there, you will have to pay a deductible when you make a claim!
Say for instance you have a pipe burst in your kitchen causing water to flood everywhere! You luckily have home insurance and call your provider to find out your next steps, what they will do is send an insurance adjuster over and they will take into account the damage that the water caused and how much it will be to fix/replace everything (Including the pipe!).
Once given approval for your claim, your insurance provider will then deduct the amount of your deductible and pay out the balance to repair your kitchen! The higher the deductible the lower your the payment, and the lower the deductible the higher your payment— just depends on your preferences!