3. Insurance Protects You From Three Kinds of Damage 1. Fire Damage - Structural deterioration, loss of personal items, etc. 2. Smoke Damage- Staining of interior and exterior of structure, permanent residual odor, etc. 3. Water Damage- Mold, electrical short-circuits, debris, etc. ~$6.7 Billion in Home Property Damage in the U.S. In 2005