Basic Named Perils

Perils Insured Against

The number of the perils insured against by each of the Homeowners forms is the major distinction among the forms. At the base are the perils that are provided in all Homeowners forms.

These Basic Perils Include: Fire, lighting, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism and malicious mischief, theft and volcanic eruption.

Interior damage from windstorm or hail is only covered if the wind or hail first makes an opening in the building. Watercraft, outboard motors and related equipment are covered only while inside fully enclosed buildings. Understanding the extent of how your property is insured under your homeowners policy will help you to protect your insured property and meet the qualifications of the policy in the event of a claim.

Vehicle damage caused by a vehicle owned or operated by any resident of the residence premises is not covered.

Smoke from fireplaces or agricultural smudging or industrial operations is not covered. The smoke peril also covers puffback...the release of soot, smoke vapor, or fumes from a furnace, boiler or similar equipment.

Vandalism or malicious mischief losses to the residence premises is not covered if the dwelling has been vacant for 60 consecutive days or more.

The theft peril includes loss of property from a known place when it is likely that the property has been stolen. It also includes attempted theft.

It does not include:

• Theft by the insured
• Theft from a dwelling under construction
• Theft from a portion of the premises that the insured rents out
• Theft of watercraft or equipment, trailers or campers while off the premises
• Mysterious disappearance (vanishing of property with no explanation)

Broad Named Perils (HO-2) are:

• Fallen objects
• Weight of ice, snow or sleet
• Accidental discharge or overflow of water or steam from within appliances or plumbing systems
• Sudden or accidental rupture of a heating, air conditioning, fire protective sprinkler, or hot water heating system
• Freezing of plumbing or related system
• Sudden and accidental damage from artificially generated electrical current

HO-2 expands coverage for two perils:

The vehicles peril includes loss to a fence, driveway or walk caused by a vehicle owned or operated by a person who lives in the insured's household.

The smoke peril includes loss caused by fireplace smoke.

Special Form Coverage (HO-3):

The HO-3, the Special form, provides open peril coverages for the dwelling and other structures, insuring against all risks of direct physical loss that are not specifically excluded in the policy. Personal property is covered on a named peril basis for the same perils insured under the HO-2.

Comprehensive Coverage (HO-5):

Comprehensive coverage insures the dwelling, other structures and personal property against loss by the package of "special" perils. The form HO-5 provides coverage for personal property on the same basis as Coverages A and B on form HO-3, with only a minor variation.

On HO-5, the coverage for theft of personal property is slightly broader than it is on HO-3. Although the special sub limits of coverage for theft of jewelry, watches, furs, special stones, silverware, gold ware, pewter ware, and firearms remain the same, the HO-5 is the only homeowners policy insuring these personal property items against the loss by what is known as "mysterious disappearance."

Exclusions...All homeowners forms contain exclusions that apply to the property coverages we've just discussed. To insure that you are properly insured, take the time to examine your homeowners policy for coverages and exclusions.

Exclusion of Losses:

• Enforcement of law or ordinance, regulating construction, repair or demolition
• Earth movement, including earthquake (requires an endorsement) and mine subsidence
• Water damage, including flooding and overflow from a sump pump
• Power interruption that takes place off the residence premises
• The insured's failure to save and preserve property after a loss, or to protect it from loss
• War
• Nuclear hazard
• Losses caused intentionally by the insured or by someone else at the insured's directions
• Destruction, confiscation or seizure of property by the government or a public authority

Loss Settlements:

The Loss Settlement condition is similar to the one found in the Dwelling Broad and Special forms. Losses to the following are paid at (ACV) actual cash value, but not more than to repair or replace:

• Personal Property
• Awnings, carpeting, appliances, outdoor antennas, and outdoor equipment
• Structures that are not buildings

Losses to the dwelling and other structures are paid at replacement cost as long as the insured carries an amount of insurance equal to or greater than 80% of the buildings replacement cost. If the insured carries less than 80% of replacement cost, he or she will be paid: The actual cash value of the loss, or; a proportion of the replacement cost.