What House Insurance Generally Covers

Property insurance covers the loss of your house and belongings through fire, theft and a variety of other events. Cover will vary from one policy to the next but, generally, a plan will provide cover for part or all of the cost incurred when your property or belongings are destroyed, damaged or stolen.

It is not possible to list precisely what will be covered by your plan as this will depend upon the insurance company selected and the terms and conditions of your particular plan. Almost all plans will however provide cover for some or all of the following events:

Fire
Falling objects
Vandalism
Hot water heater bursting
Smoke
Volcano
Ice, snow, or sleet weighing on vehicles
Explosion
Theft, including check forgery and counterfeit currency
Windstorm
Freezing of plumbing
Hail
Flooding due to plumbing overflow
Lightning
Riot
Unauthorized use of credit cards
Heating system malfunction
Power surges

There are a variety of different types of house insurance plan, normally called a 'form' and the most commonly available forms are:

The Dwelling Fire Form. This particular type of house insurance plan covers simply your dwelling and does not provide cover for your personal belongings. Furthermore, it does not cover any personal liability. As its name would suggest it only covers you for certain events which normally extend to fire, smoke, hail, windstorm, lightening, vehicles, explosion and civil unrest.

The Basic Form. This type of house insurance extends your coverage to take in the theft of your personal belongings and vandalism.

The Modified Coverage Form. The modified coverage form gives cover which is the same as that offered under the basic form but this sort of cover is applied to older properties where the cost of rebuilding is greater than the market valuation for the property.

The Broad Form. This form of house insurance extends cover beyond that found in the basic form to include damage resulting from falling trees and other objects; damages resulting from the weight of snow, ice and sleet and the freezing, rupturing or sudden accidental overflow of a plumbing, heating, air-conditioning or fire sprinkler system or a household appliance.

The Special Form. The special form is the most commonly purchased form of homeowners insurance and gives cover against all risks unless these are specifically excluded within the terms and conditions of the plan. Perils which are usually excluded include earthquake, flood, nuclear accident and war.

In addition to the forms of homeowners insurance listed here there is also the tenants form insurance for renters and the condominium unit owners form for owners and occupiers of condominium units. Additionally, owners of townhouses can arrange an individual plan or may be able to get coverage under an association master plan. Lastly, in almost all states mobile home owners whose home possesses wheels and is not resting on a permanent foundation will be required to buy auto insurance rather than homeowners insurance.