What is so “Special” about my Homeowners Insurance?

What is so “Special” about my Homeowners Insurance?

It’s funny how different words can have different meanings in various settings and that certainly is true in the insurance world. Your homeowners policy probably tells you that you have “Special” coverage on your home. Does that mean your coverage is Superior?  Well, it is the best that the industry has to offer but you should understand how it works, especially since you might have different coverage for the contents of your home.

“Special” coverage means that if your loss is not excluded in the policy, it will be covered.  The best part about this is that is means that you report your claim to the company and they have the burden of proving to you that it is excluded somewhere in the policy.

“Broad” coverage is often used for your personal contents.  This means that your personal property is insured against the following perils:  fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, falling objects ; weight of snow, ice, or sleet; water damage (in the form of leakage from appliances); and collapse from specified causes.   The problem with this coverage is that YOU need to prove that the damage stems from one of these causes.

So, if a child gets hold of a can of spray paint and goes running through your house spraying wildly as he goes, the building (walls, floors, wall-to-wall carpeting) would be covered because “wild child with paint can” is not excluded in the policy.  However, since “wild child with paint can” is not specifically named on the “Broad” form for contents, your TV, dining table, art work, books, etc. would not be covered.

Why should you care?  Because Holiday Season is here and you might need some extra coverage for those high valued items that are now coming into the house.  A friend of mine was hanging a picture and drilled a hole in the wall, straight through into their brand new refrigerator.  “Special” coverage would cover.  “Broad” coverage would not.  Do you have a Brand new 50 Inch LCD TV?  Did someone accidentally through their Wii controller through it?  “Special” coverage would cover.  “Broad” coverage would not.

Keeping in mind that different companies have various forms and deductibles that will apply, it may be a good time to review what your homeowners policy covers.  If you have questions about your particular policies, please give us a call at 877-352-2121 so that we can ensure that you are Ready for Anything.

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