The standard policy (HO-3) typically covers damage to both structures and personal property from fire, lightning, windstorms, hurricanes, tornadoes, hail, explosions, aircraft, vehicles, smoke, theft, vandalism, falling objects, damage from ice, snow, or sleet, and freezing pipes. Personal liability is also covered if you or your property injures someone. Just about everything is covered unless specifically excluded.
Typical exclusions are flood, earthquakes, neglect, intentional loss, earth movement, power failure, and damage caused by war. Also, if you have a loss and the building codes have changed, increasing the repair or replacement costs, you’ll pay the difference.
For example, if you have a fire and your home’s electrical system is an older 60 AMP fuse system, you’ll end up picking up the cost to upgrade it, plus all other upgrades needed to bring the home into code compliance. Also, there are limits on the losses that can be claimed for items such as cash, furs, jewelry, or hobby collections. You’ll need to decide if you want to buy supplemental coverage to increase your protection. One worthwhile supplemental item is coverage for living expenses if your home is destroyed or damaged and you have to move out for a while. It covers hotel bills, restaurant meals, and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage but for a limited time. It doesn’t take much damage to a home for you to be glad you added this option to your policy.
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