FAQ - Special Form Policy

There are six basic types of home insurance policies.

Regardless of what state you live in, except Texas, the policies are very similar. Each is defined by the perils it covers. The proper home insurance coverage consists of getting the right type of policy, having the proper levels of protection within that policy, including special provisions for jewelry and computer equipment, and supplementing this coverage with special protection against natural disasters that ARE NOT COVERED in your basic policy. The special "homeowners three" form is and extended policy. It covers seventeen stated perils, some of which include, fire, lightening strikes, water-related damage, electrical surge damage, and vandalism. The H-0-3 form also covers any other peril not specified in the policy, except for flood, earthquake, war and nuclear accident. Many companies have expanded versions of the H-0-5 form with very broad coverage on your home and personal effects. Be sure to review the section of your policy titled "Special limitations on certain types of personal property". That section lists limitations on such items as jewelry, watches, furs, guns, coins and other collectibles. You can always increase these areas to suit your needs.