No doubt, having insurance is a smart move. However, knowing what your policy covers is just as important. That’s why today we take a closer look at the 16 risks (or “perils”) covered by a standard homeowners insurance policy. Keep reading to learn more.
Home Insurance: the Basics
Before we dive into the details, it’s worth keeping in mind that not all homeowners policies are created equal.
Homeowners policies are divided into types that range from HO-1, the most basic, to HO-8, which is designed for older homes.
HO-3 policies are the most popular of this group because they shield homeowners from a wider variety of risks than more basic policies.
When people talk about homeowners insurance, they are usually referring to HO-3 policies. However, it’s essential to know what type of policy you have. This way you’ll be able to address gaps in your coverage and limit risks if necessary.
The 16 Perils Covered by a Standard Homeowners Insurance Policy
HO-3 policies offer two types of protection, one for your home and another one for your belongings.
With this type of policy, your home and related structures are covered on an open-perils basis. This means that your home is protected against all risks, except those specifically excluded in your policy.
Your personal property, on the other hand, is covered on a named-perils basis, meaning that you get coverage only against the risks listed (or “named”) in your policy.
These are the 16 perils named in an HO-3 homeowners policy:
- Fire and lightning
- Windstorm and hail
- Volcanic eruption
- Smoke
- Explosion
- Weight of ice and snow
- Riots
- Damage caused by aircraft
- Damage caused by vehicles
- Falling objects
- Vandalism
- Theft
- Accidental discharge or overflow of water from household appliances or a plumbing, heating, air conditioning, or fire sprinkler system.
- Freezing of plumbing, heating, air conditioning, or fire sprinkler systems or household appliances
- Sudden and accidental tearing apart, cracking, burning, or bulging of plumbing, heating, air conditioning, or fire sprinkler systems
- Sudden and accidental damage due to short-circuiting of electrical current (excluding loss of necessary electrical components)
This is a solid list that includes some common risks as well as other less frequent (but potentially costly) perils.
That being said, your typical homeowners insurance does NOT cover incidents like earthquakes, floods, or water backup damage. Purchasing separate policies against these risks is the best way to supplement your coverage and make sure that your home is fully protected.
RF1 Insurance Services: Homeowners in California
At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California Fair Plan.
Contact us by email (info@RF1ins.com), telephone (909-359-2067), or social media (Facebook, Twitter, or LinkedIn) for a free quote or to learn more about a full range of insurance solutions.
