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<h1 class="post-headline " style="text-align: center;"><span style="color: #000000;"><strong>your coverage depends on what policy you have</strong></span></h1>[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.0.9"][et_pb_column type="4_4" _builder_version="4.0.9"][et_pb_text _builder_version="4.0.9"]<div align="center">
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<p style="text-align: right;"><span style="color: #000000;">If you have homeowners insurance, you have coverage to protect against damage to your home. There are limitations to that coverage, though, and they depend on the types of peril your policy insures against.</span></p>
<p style="text-align: right;"><span style="color: #000000;">A peril is something that causes damage to your home. There are eight types of homeowners insurance, but they all fall into one of two categories: named peril or open peril.</span></p>
<h2 id="what-is-an-insurance-peril?" class="toc-header-element" style="text-align: right;"><span style="color: #000000;"><strong>What is an insurance peril?</strong></span></h2>
<p style="text-align: right;"><span style="color: #000000;">A peril is an event that may damage your home or belongings, like theft, fire, or a storm, according to Allstate. The type of peril coverage you have depends on the homeowners insurance based on your dwelling type: condo, home, mobile home, renter, or new construction. </span></p>
<p style="text-align: right;"><span style="color: #000000;">Note the difference between the terms peril, hazard, and risk. For insurance purposes, a peril refers to a specific event that determines whether your homeowners insurance will cover you.</span></p>
<p style="text-align: right;"><span style="color: #000000;">A hazard is something likely to cause a peril. For example, a dry Christmas tree can cause a fire hazard triggering a peril. During winter, ice and snow can cause a slipping or tripping hazard, increasing the potential of physical injury. A risk increases the likelihood of a peril. For example, hanging heavy Christmas lights on roofs and gutters increases the risk of falling objects</span></p>
<h2 id="open-peril-vs.-named-peril-homeowners-insurance" class="toc-header-element"><span style="color: #000000;"><strong>Open-peril vs. named-peril homeowners insurance</strong></span></h2>
<p><span style="color: #000000;">Homeowners insurance falls in two categories: named-peril policies and open-peril policies.</span></p>
<p><span style="color: #000000;">"Open peril" is also referred to as "all peril." A named-peril policy covers you for listed events, like a fire, storm, or theft. An open/all-peril policy covers just about anything that might happen, unless your policy specifically notes that it's not covered.  </span></p>
<p><span style="color: #000000;">Insurance company Lemonade provides the following example of an open-peril policy: If an apartment flood ruined your computer, and your policy doesn't specifically say flooding <em>isn't</em> covered, your insurance company will have to approve your claim, by default.</span></p>
<h2 id="peril-coverage-depends-on-your-type-of-homeowners-insurance" class="toc-header-element"><span style="color: #000000;"><strong>Peril coverage depends on your type of homeowners insurance</strong></span></h2>
<p><span style="color: #000000;">There are eight types of homeowners policies based on the type of home you have. Most of the policies include named-peril coverage, meaning you're only covered for listed events.</span></p>
<p><span style="color: #000000;">However, standard HO-3 insurance and mobile home insurance have additional open/all-peril coverage for the dwelling structure. That means if you have an HO-3 or HO-7 policy, your home is covered from just about anything, but your belongings are covered under named perils only.</span></p>
<h2 id="perils-covered-by-home-insurance" class="toc-header-element"><span style="color: #000000;">Perils covered by home insurance</span></h2>
<p><span style="color: #000000;">Here are a few instances of events that might be considered named peril or open peril:</span></p>
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<td><span style="color: #000000;"><strong>Named peril</strong></span></td>
<td><span style="color: #000000;"><strong>Open/all peril</strong></span></td>
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<li><span style="color: #000000;">Fire or lightning</span></li>
<li><span style="color: #000000;">Windstorm or hail</span></li>
<li><span style="color: #000000;">Explosion</span></li>
<li><span style="color: #000000;">Riots</span></li>
<li><span style="color: #000000;">Aircraft</span></li>
<li><span style="color: #000000;">Vehicles</span></li>
<li><span style="color: #000000;">Smoke</span></li>
<li><span style="color: #000000;">Vandalism</span></li>
<li><span style="color: #000000;">Theft</span></li>
<li><span style="color: #000000;">Falling objects</span></li>
<li><span style="color: #000000;">Weight of ice, snow, or sleet</span></li>
<li><span style="color: #000000;">Accidental discharge or overflow of water or steam</span></li>
<li><span style="color: #000000;">Sudden and accidental tearing, cracking, burning, or bulging</span></li>
<li><span style="color: #000000;">Freezing</span></li>
<li><span style="color: #000000;">Sudden and accidental damage due to short circuiting</span></li>
<li><span style="color: #000000;">Volcanic eruption</span></li>
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<ul>
<li><span style="color: #000000;">Freezing pipes and systems in vacant dwellings</span></li>
<li><span style="color: #000000;">Damage to foundations or pavements from ice and water weight</span></li>
<li><span style="color: #000000;">Theft from a dwelling under construction</span></li>
<li><span style="color: #000000;">Vandalism to vacant dwellings</span></li>
<li><span style="color: #000000;">Latent defects, corrosion, industrial smoke, pollution</span></li>
<li><span style="color: #000000;">Settling, wear, and tear</span></li>
<li><span style="color: #000000;">Pets, other animals, and pests</span></li>
<li><span style="color: #000000;">Weather conditions that aggravate other excluded causes of loss</span></li>
<li><span style="color: #000000;">Government and association actions</span></li>
<li><span style="color: #000000;">Defective construction, design, and maintenance</span></li>
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<h3><span style="color: #000000;"><strong>Perils not covered by homeowners insurance </strong></span></h3>
<p><span style="color: #000000;">Earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups and sinkholes are all perils that won't be covered by homeowners insurance, according to Hippo Insurance. Those will require add-on coverage using a rider policy.</span></p>
<p><span style="color: #000000;">Homes located in disaster-prone areas — hurricanes, tornadoes, and wildfires — will have increased premiums because these types of events are not included in basic coverage and will need to be add-on riders. </span></p>
<h2 id="what-is-homeowners-insurance?" class="toc-header-element"><span style="color: #000000;"><strong>What is homeowners insurance?</strong></span></h2>
<p><span style="color: #000000;">Homeowners insurance protects the dwelling, your belongings, and offers liability coverage for injuries that happen on your property. If the mailman slips and falls on your sidewalk, the dog bites a guest, a tree falls on your roof, or the neighbor's kid injures himself doing a cannonball in your swimming pool, homeowners insurance can protect you. If you live in a condo/co-op, the condo association's master policy covers the building and common areas, but condo insurance covers your unit.</span></p>
<p><span style="color: #000000;">Homeowners insurance offers protection for homeowners' belongings and the home itself. Unlike car insurance, homeowners insurance is not required by state law. However, if you have a mortgage, your lender will require homeowners insurance to protect the investment. Also, some condo associations will have rules in the by-laws about homeowners insurance coverage minimums.</span></p>
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<p><span><span style="color: #000000;">To read the full article, </span><a href="https://www.businessinsider.com/personal-finance/what-is-home-insurance-peril">click here</a><span style="color: #000000;">.</span></span></p>
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