What Perils Does Homeowners Insurance Cover

The money you are investing in your home deserves and requires protection, but you need to know the things it is and should be protected from. If your are looking for homeowners insurance for your first home, you are probably wondering what perils does homeowners insurance cover. It is a good question that will be answered below.


General Types of Homeowners Insurance Policies

The type of homeowners insurance policy or policies you purchase will determine what perils are covered. Your lender will have requirements for the basic type of insurance you must have, so the first thing is to speak with them before you make a home insurance purchase. The most common policy types are the basic form, the broad form and the special form. There are also types for those insuring a rented space or specific structures. Most likely, you will be required to have the special form by your lender to protect your home.


Perils Covered by Basic and Broad Form Homeowners Insurance Policies

The basic and the broad forms provide a limited level of coverage and most lenders will require a more extensive policy to protect their investment. The perils covered by these policies include:


  • Basic:
    • Fire
    • Smoke
    • Windstorm
    • Theft
    • Vandalism
    • Vehicles
    • Civil Unrest
    • Lightening
    • Explosion
  • Broad:
    • All basic perils plus…
    • Weight of sleet, snow, ice
    • Rupturing or sudden overflow of plumbing, HVAC, appliances or sprinkler systems


Perils Covered by Special Form Homeowners Insurance Policy

The special form will provide protection from most any peril that is not specifically excluded by the policy or is a special case perils. Special cases will be discussed in the section below. All perils covered by the basic and broad forms will be covered, plus those not specifically excluded, which results in broader coverage. The dwelling, contents and other structures on the property will be covered as long as they are listed on the policy. If the cause of damages is determined to be from your negligence or deliberate action, the claim will not be paid. That is true for all policies.


Special Case Perils and Your Homeowners Insurance

Special cases in homeowners insurance include a few serious perils that need special attention. Flooding is the biggest one and it will not be covered by any of the policies mentioned above. Other special cases include earthquakes, war, and nuclear accident. Depending upon where you live, protection from volcanic eruption, wildfires, mudslides and hurricanes may also be specifically excluded from your standard coverage. To get insurance for these perils, separate policies will need to be purchased that cover that peril specifically. Your lender will let you know if it is required.


Compare the Cost of Homeowners Insurance

As you shop and sort through your requirements and options, you can use online rate quotes to compare the cost of homeowners insurance. The top homeowners insurance companies in your state offer their quotes online, so this is a great tool for finding the most affordable option. Remember to provide accurate information about you, your home and the type of coverage you need. It takes only minutes to get your quotes to spot where you can save the most on your homeowners insurance.

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