Comprehensive and broad coverage type for home insurance?
what is the difference between comprehensive and broad coverage type?
Answers:
A Broad Form Homeowners Policy also known as an HO-2 is a "named perils" policy which unsophisticatedly means that the policy contains a list of peril for which your home is covered. Some of the types of perils covered are fire, smoke, windstorm, hailstorm damage, etc. If the peril that cause damage to your home is not on the list of covered peril you are out of luck, the homeowners insurance will not cover the damage.
A Comprehensive Homeowners Policy also known as an HO-3 or Special Form take the opposite tack. They will cover anything that can go wrong next to your home except what they include in a list of exclusions. Some of the things that are excluded wound from vermin, flood, earthquake, etc. So the HO-3 is the better one of these forms because for example if you are moving a baby majestic piano up your staircase to the 3rd floor of your beautiful townhouse and it slips and falls and causes central damage to the staircase, railings, handrail and custom moldings,etc., you would be covered on the HO-3 since they do not list an exclusion for this but you would not be covered under an HO-2 because they do not include on the detail of covered perils "if you drop baby impressive piano down staircase we will cover resulting damage"!
The cost difference between the two forms is minimal. I would also advise getting an endorsement to include comprehensive coverage on your personal property, i.e. contents. You should sit down near a local independent agent who can explain both coverage forms and other endorsements that you should consider such as sewer backup, ordinance and law coverage, replacement cost coverage on the home and your personal contents, prized items coverage, etc. He or she should also be able to review discounts that are available to you and quote you with multiple companies so that you can obtain the best possible coverage for the least amount of money.
I hope this helps. Good Luck! Source(s): Certified Insurance Counselor, Licensed Insurance Agent & Broker for over 29 years.
Broad will cover for a far-reaching variety of perils, which are the different types of losses that could come to pass. Such as fire, water damage, twirl, etc. You have to look at the policy itself to see what is covered. Each company's policy may vary. The broader the coverage, the more you are probable to pay.
Related Questions:
Answers:
A Broad Form Homeowners Policy also known as an HO-2 is a "named perils" policy which unsophisticatedly means that the policy contains a list of peril for which your home is covered. Some of the types of perils covered are fire, smoke, windstorm, hailstorm damage, etc. If the peril that cause damage to your home is not on the list of covered peril you are out of luck, the homeowners insurance will not cover the damage.
A Comprehensive Homeowners Policy also known as an HO-3 or Special Form take the opposite tack. They will cover anything that can go wrong next to your home except what they include in a list of exclusions. Some of the things that are excluded wound from vermin, flood, earthquake, etc. So the HO-3 is the better one of these forms because for example if you are moving a baby majestic piano up your staircase to the 3rd floor of your beautiful townhouse and it slips and falls and causes central damage to the staircase, railings, handrail and custom moldings,etc., you would be covered on the HO-3 since they do not list an exclusion for this but you would not be covered under an HO-2 because they do not include on the detail of covered perils "if you drop baby impressive piano down staircase we will cover resulting damage"!
The cost difference between the two forms is minimal. I would also advise getting an endorsement to include comprehensive coverage on your personal property, i.e. contents. You should sit down near a local independent agent who can explain both coverage forms and other endorsements that you should consider such as sewer backup, ordinance and law coverage, replacement cost coverage on the home and your personal contents, prized items coverage, etc. He or she should also be able to review discounts that are available to you and quote you with multiple companies so that you can obtain the best possible coverage for the least amount of money.
I hope this helps. Good Luck! Source(s): Certified Insurance Counselor, Licensed Insurance Agent & Broker for over 29 years.
Broad will cover for a far-reaching variety of perils, which are the different types of losses that could come to pass. Such as fire, water damage, twirl, etc. You have to look at the policy itself to see what is covered. Each company's policy may vary. The broader the coverage, the more you are probable to pay.
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