Property Insurance Basics
Anatomy of a policy
Every property form has declarations (who, what, where, how much, deductible), an insuring agreement (the promise), conditions (duties after loss, appraisal, other insurance, mortgage clause), exclusions, and definitions. A binder provides temporary evidence of coverage.
Homeowners at a glance
HO-2 broad form (named perils), HO-3 special form (open perils on the dwelling, named perils on personal property), HO-4 tenant contents only, HO-5 comprehensive (open perils on both), HO-6 condominium unit owner, HO-8 modified form for older homes. Coverages run A dwelling, B other structures, C personal property, D loss of use, E liability, F medical payments. Dwelling policies (DP-1, DP-2, DP-3) cover the structure and contents, not liability.
Commercial property
Commercial forms cover building and business personal property; the attached causes of loss form decides the perils - Basic (fire, lightning, explosion, windstorm, hail, smoke, vandalism, sprinkler leakage), Broad (adds falling objects, weight of ice and snow, water damage, breakage), Special (open perils subject to exclusions). Commercial policies usually carry coinsurance; homeowners policies do not.
Traps
Flood and earth movement are excluded everywhere - the answer is a separate policy, not an endorsement. Loss of use is not simply rent; check whether the form pays fair rental value or additional living expense. Vacancy restricts vandalism and glass coverage, and the mortgage clause protects the lender's interest even when the insured's acts void coverage.
Rule of thumb
Value first, then perils, then limits. An HO-3 claim pays replacement cost on the dwelling and ACV on contents unless a replacement-cost endorsement is added.