Final answer:
The insurance that provides financial protection to homeowners against disasters, insures both the home and its contents, and offers liability coverage is Homeowner's insurance.
Step-by-step explanation:
The type of insurance described in the student's question is Homeowner's insurance. This insurance provides financial protection to homeowners against various disasters. A standard homeowner's policy not only insures the physical structure of the home but also the contents within it against situations like theft or fire. Moreover, it provides liability coverage, which is the protection against legal responsibility for any injuries or property damage the policyholder or family members cause to other people. This is an essential safeguard, as it helps to mitigate the financial risks associated with owning a home and potential accidents that could occur on the property.