Understanding 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.