The Importance of Insurance

What Are The Pros & Cons Of Broad Form Insurance

2 May 2019

Katrina Terry

Picking homeowner's insurance for the first time can be a little scary. Unlike vehicles, not everyone has owned a home, so looking at the different types of policies can be a little like reading Greek if you don't know the language. Homeowner's insurance is usually separated out into different types and each type has its own set of covered events or property features. One of the subtypes, and also one of the most basic forms, of homeowner's insurance is designated as broad form insurance. Here is a look at some of the policy features in pro and con fashion to help you decide. 

Pro: Broad form insurance does cover your personal belongings. 

The majority of broad form policies will cover your personal belongings, which is something that some more basic forms of policies will not offer all alone. This means that if your home is damaged by a peril listed in the policy, your home repairs will be covered but so will your personal belongings, such as your furniture and appliances. 

Con: Broad form policies will only cover listed perils. 

One of the few downfalls of a broad form policy is the fact that when you initially obtain the policy, you will have to name certain perils that you want to be covered. For example, you may elect to have coverage for damages caused by hurricanes, fires, and thefts. If your home is damaged by an unnamed peril, you won't be covered, so it is critical to pick the right perils and make sure they are included in your coverage. 

Pro: Several things will be included in your policy that may not have to be named. 

Broad form homeowner's insurance is the most common type for good reason; it offers coverage for the majority of things that can happen to a home to cause damage. A few examples include: 

• Damage caused during a riot 
• Ice damage or collapse due to ice and snow collection on the roof 
• Damages caused by vehicles
• Vandalism 
• Damages created by objects falling from the sky

Con: you may have to add on a property liability policy. 

Many broad form policies actually do not cover property liability, which is important if someone gets hurt on your property. Therefore, you may have to tack on an added extension or coverage option to get property liability coverage. Make sure you ask your homeowner's insurance agent if property liability coverage will be included. 

For more information, contact a homeowner's insurance agent.

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