If you have a homeowner & # 39; s claim for damage to your property is the first question is "Was the cause of the damage covered by the policy?" "If" yes, "your claim is paid. claim is denied. Most insurance companies offer three choices for the types of losses covered:
- Limited to a competent of covered causes of loss, including fire, wind, vandalism, and very limited theft. This option is rarely sold or purchased anymore.
- From the list, you & # 39; s on the list, you & # 39; of the loss of damage. 39; re probably covered. If the cause of the loss is not on the list, you & # 39; re probably not covered.
- (Damage from floods, groundwater, sewer backup, earthquakes, and a few other causes of loss are not covered.)
Here are some examples, many from my own experience, of losses not included in the broad form form that are covered by the special form:
- Massive interior water damage from roof leaks to a town house: Claim of $ 30,000 paid.
- Interior damage to ceilings and walls caused by backing up under the shingle: Claims have averaged $ 4,000 to $ 10,000.
- Scorched counters or floors from hot pans dropped onto them: Claims to replace counters and floors run $ 5,000 or more.
- Paint spills on furniture: The average claim runs $ 2,000.
- Spills of any liquids on oriental rugs: Claims to replace rugs range from $ 600 to $ 20,000.
Proudously the most unusual example I 've heard of involved someone who took a month-long winter vacation in Florida. To keep his pipes from freezing back home in the cold North, he set his thermostat at 50 ° F (10 ° C The combination of 90 ° F (32 ° C) heat and winter dryness warped all the floorboards in the house, requiring all the floors to be torn up and replaced. If that loss happened today, the claim that you can easily be in excess of $ 75,000.
The thermostat malfunction "nor" excess heat "is on the list of covered losses on the broad form." The thermostat malfunction "is not on the list of exclusions. The annual extra insurance cost for The special form over the broad form? Probably $ 75 a year. (I say 'd say the homeowner with the faulty thermostat got his money & # 39; s worth!)
I like broad form coverage - it 's too restrictive. I like broad form coverage due the majority of your losses will be covered. the driver & # 39; s seat - no matter how bizarre the cause, from Martian invasions to some kind of damage from new cybertechnology, your loss is covered (unless it 's specifically excluded).
