The Basics of Homeowners Insurance

Basic Covered Perils (or losses) The following perils are covered on all Property and Casualty policies. Additional coverages may be added to a policy for an extra fee. Also, some policies already have additional coverages built into the policy. For all covered perils, check your policy. Windstorm or Hail Riot or Civil Commotion Explosion Lightning Fire Vehicles or Aircraft Vandalism or Malicious Mischief (This does not cover theft) Volcanic Action Smoke Sprinkler Leakage Sinkhole Collapse Falling Objects Weight of Snow, Ice, or Sleet Water Damage Types of Homeowners Insurance Policies HO - 1 Basic Homeowners Policy, basic covered perils only HO - 2 Broad Form - Basic Homeowners Policy with a few extra coverages HO - 3 Special Form - Homeowners Policy, if the loss is not excluded it is covered HO - 4 Tenants Form - Renters Insurance HO - 5 Comprehensive Form - Most Common Homeowners Policy, gives you the most coverage HO - 6 Condominium - Unit Owners Form HO - 8 Modified Coverage Form - Homeowners for older homes Homeowners Insurance Coverages Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use Coverage A - Dwelling If you own the dwelling you will have coverage for the structure, the perils listed on the policy and on any attached structures, i.e., attached garage. Coverage B - Other Structures This covers all structures on the property that are not directly attached to the home but do have a foundation, i.e., detached garage or yard barn. Coverage is generally a limited amount of Coverage A, between 10 - 20% is normal. Coverage C - Personal Property This coverage is 50% of Coverage A unless otherwise specified in the policy. Most dwelling policies cover the property on premises only. The homeowners policy however, covers the property anywhere in the world but it may be limited. Not all property is covered and there may be certain dollar values for certain items. Check your policy for the specific coverage amounts Coverage D - Loss of Use If your property becomes uninhabitable, your policy will cover your additional living expenses at fair rental value. The property must become uninhabitable because of a covered loss. If a loss is excluded from the policy, then this coverage will not be given. For example, mold is usually an excluded loss. However, if you have a fire or water leak in your home, this coverage would apply. Many other coverages may be added to your policy. The amount and types of coverage depend on your insurance carrier and the type of policy written for your home.