Although every home insurance policy must be carefully read and understood to determine the exact scope of coverage, the exclusions, the limitations and terms, here are a few claim examples we have come across over the years that helps illustrate some of the coverage differences.
These loss examples are from actual situations and demonstrate the need for a thorough understanding of your insurance.
1. Basic Form – Fire & Extended Coverage (F & EC) or Named Perils: Typically the most basic form of property insurance. Provides coverage for certain specified perils on your building and/or contents - Fire, Lightning, Explosion, Smoke (not usually from a fireplace), Riot and Civil Commotion, Falling Objects, Aircraft/Vehicle Impact, and Wind or Hail. Please note that coverage for Vandalism/Malicious Damage, Water Damage, Theft and/or Burglary may NOT be covered but may be available as an option.
2. Standard Form: Often referred to as a Standard Homeowners Policy. Provides similar coverage to the basic form above + may include theft/burglary, vandalism/malicious damage, glass breakage, and certain types of water damage.
3. Broad Form: Generally referred to as a "Broad Form Homeowners Package" typically includes the standard perils (as above) on personal property and the BUILDING (owners only) is insured for the superior "all risks of direct physical loss" i.e. subject to fewer exclusions. Some examples of actual claims include...
• personal accident - broadloom (part of building) severely damaged by blood-$10,000
• battery acid spilled on flooring-$5,000 (carrying a car battery to basement)
• expensive chandelier dropped damaging floor and chandelier-$12,000
• child with hammer ruined bathroom fixtures, mirrors and walls-$8,000
• washing machine vibrated across floor smashing hot water tank-$5,000
• ice melting under shingles severely damaging interior ceiling-$10,000
• damage to air conditioning unit when pile of shingles dropped-$4,000
• paint spilled on hardwood floor and broadloom-$7,000
• damage to floors and drywall when window left open near outside sprinkler-$4,000
4. "All-Risk" Form: Often referred to as a "Comprehensive" or "Multi-Peril" Homeowners Package - covers the losses described above plus "all risks of direct physical loss" (subject to fewer exclusions) on your personal property as well. Examples of claims include;
• Significant damage to building & contents when deer crashed through living room window -
• Watch lost while swimming - $6,000
• Paint spilled on fur coat-$10,000
• Skunk entered home causing substantial damage - $14,000
• Luggage lost by airlines -$4,000
• Canoe tipped dumping cameras, camping gear etc.-$6,000
• Damage to bicycle in collision - $2,000
• Digital camera dropped down escalator and ruined-$ 4,000
• Splash from salt water show at sea-aquarium damaged camera - $ 2,000
• Television set fell down stairs while being moved-$ 3,000
• Aquarium burst damaging carpeting and other contents - $ 10,000
• Beverage spilled on sound system during a party - $ 3,000
• Child spilled nail polish remover on furnishings - $ 3,000
• Boat capsized while scuba diving sinking all equipment - $ 5,000
Please note that these actual loss examples are for descriptive purposes only. It is important that your own policy be carefully reviewed for all terms, exclusions, limitations and conditions.