Property insurance

 

Named Perils
The events that a homeowner’s insurance policy specifies as covered are called named perils. If any of these perils befall a policyholder’s home, the insurer will extend benefits to cover the damages. The most common named perils in house insurance policies include lightning or fire, explosions, windstorms, theft, vehicle damage, and others. Depending on the type of policy the homeowner has, coverage may be limited only to the named perils. These kinds of policies are called named peril coverage. In this post, we’ll discuss the most common named perils and explain how named peril coverage works.
Common Named PerilsOne of the most popular types of house insurance policies in the U.S. is called the HO-2 policy, or the broad form. The HO-2 policy covers 16 named perils, including:

1. Lightning or fire
2. Hail or windstorm
3. Damage caused by aircraft
4. Explosions
5. Riots or civil disturbances
6. Smoke damage
7. Damage caused by vehicles
8. Theft
9. Vandalism
10. Falling objects
11. Volcanic eruption
12. Damage from the weight of snow, ice, or sleet
13. Water damage from plumbing, heating, or air conditioning overflow
14. Water heater cracking, tearing, and burning
15. Damage from electrical current
16. Pipe freezing

Named Peril Coverage
Houseinsurancerates
All Risk Coverage

All-Risk Coverage (versus Named Peril)
(Exclusions: Flood, Earthquake, War, Nuclear Accident)
Insurance policies decide what they will cover and what they won't through two different approaches: "all-risk" or "named peril."
With "named peril coverage," only damages that are mentioned in the policy are covered. So if, for example, your policy says it will cover you for fire and theft and a construction boom knocks out your window, the insurance company will not help pay to fix your window because damage from construction was not specifically mentioned in your policy.
With "all-risk coverage" anything that happens to your house is covered, unless it is specifically excluded in your policy. So if something happens that no one ever thought of, like an escaped circus elephant destroying your living room, you will be covered.
All insurance policies will exclude floods, earthquakes and nuclear war. But, if you live in an area that gets earthquakes and floods you should probably buy special flood or earthquake insurance.
Other exclusions will depend on the company and the specific policy. So read your policy carefully and talk to your insurance agent to make sure you know what is and isn't covered.

http://www.cavignac.com/pdfs/C-0398.pdf

Builder’s Risk Insurance

This is a property policy designed to provide coverage for buildings while under construction.  It covers the contractor’s interest in materials at the job site before they are installed, materials in transit intended for the job and the value of the property being constructed until it is completed and accepted by the owner.  The policy may be written to cover the whole structure for new construction or rehab projects.  It can also be used to cover specific projects such as a new room addition, a deck or a remodeled kitchen.  The actual coverage provided is similar to a standard commercial property policy. What it Covers The Builder's Risk policy is actually a form of inland marine insurance.  It incorporates similar "special form" coverage to that used in a commercial property policy.  This means that the policy will specifically list exclusions, or what is not covered.  Basic perils such as fire, wind storm, lightning, hail, theft and vandalism are all included.  Limited coverage is provided for collapse.  Standard exclusions include earthquake, employee theft, water damage, weather damage to property in the open, war, government action, contract penalty, voluntary parting and mechanical breakdown.  An important exclusion which should be read in its entirety excludes coverage for damage resulting from faulty: design, planning, workmanship and materials.  The intent is to only provide coverage for sudden and accidental events, not poor construction. Coverage Extensions Debris Removal The policy will pay your expenses to remove debris of Covered Property. This debris must result from a loss that is covered under this form. Fire Department Service Charge When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, the policy will pay up to $10,000 for your liability for fire department service charges which. Scaffolding, Construction Forms and Temporary Structures Coverage is extended to apply to scaffolding, construction forms and temporary structures, but only while they are at a location you have reported. Profit For rehab projects, expected profit may be included for coverage.  This is allowed at 10% of the purchase price of the shell.  This is an option which is added into the total limit of insurance.  For example:  $60,000 shell price + $50,000 value of improvements + $6,000 profit = $116,000 total insured value. Property at Other Locations This coverage extension provides $10,000 for property intended to be installed on the project while at a temporary location.  For example, if you have siding at your warehouse intended for installation at an insured location and lose it in a fire, this coverage would respond. Property in Transit A coverage extension to protect your property from loss while being transported to the jobsite.  The additional coverage limit is $25,000 Sewer and Drain Backup Water damage from the back-up of sewers and drains is covered for up to $5,000. Who it Covers The named insured of a Builder's Risk policy is usually the contractor or developer of the property.  However, it may be the building owner or homeowner if they are responsible for insuring the property while under construction.  A mortgagee or lien holder may be added as an additional insured. Limit of Insurance The most the insurer will pay for loss or damage in any one occurrence is the limit of insurance stated in the policy declarations.  Limits are stated for each location.  For a reporting form policy, the limit is the amount shown on the most recent report.  Claims are settled on an Actual Cash Value basis for all builder's risk losses.  This is usually not a problem since the property being installed is new and not depreciated. Deductible The standard deductible is $500. However, other deductible amounts are available and the deductible applies only once per loss.  Higher deductibles will help lower your premium.