There are several types of homeowners' policies offered by most companies. The following is a general description of homeowners insurance. You must refer to the actual policy offered by a company admitted to do business in your state to determine the perils and exclusions of the policy.

There are certain perils that are almost always excluded from homeowners' policies. These perils include earthquake, flood and certain other perils. You may be able to purchase separate policies for these perils. In cases where a dwelling is in or near a flood plain, your lender will require flood insurance.

Homeowners Basic Form usually covers damage due to: fire or lightning, windstorm or hail, vandalism or malicious mischief, theft, damage from vehicles and aircraft, explosion, riot or civil commotion, glass breakage, smoke, volcanic eruption, and personal liability.

Homeowners Broad Form covers damage due to perils listed in Basic Form, plus building collapse; freezing of or accidental discharge of water or steam from internal plumbing, heating, air-conditioning systems or domestic appliances; falling objects; weight of ice, snow or sleet; rupture or bursting of steam or hot water heating systems; and personal liability.

Homeowners Special Form covers risks of direct loss to physical property except certain specified exclusions, such as earthquake and flood, for damage to or loss of the home (dwelling) or other structures such as a garage; all perils covered by the Broad Form for damage to or loss of personal property (contents); and personal liability. Special personal property coverage for items such as guns, furs, jewelry, computers and other goods can be added to the policy for an additional premium.

Tenants Homeowners or Cooperative Homeowners Form covers personal property for all of the perils covered under the Broad form.

Condominium Homeowners Form covers condominium owners' personal property and liability, their portions of the building and loss of use from the same perils as the Broad Form.

Specialized Forms covers certain dwellings that require a specialized form of coverage: very old buildings, certain types of unusual construction, etc.

Converges Required During Construction of a New Home

You should consult a licensed insurance agent to determine the type of coverage you need when you are building or substantially renovating a new home. Your existing homeowners' policy does not cover new construction. In addition your lender may require that you obtain special converges during construction, such as builders' risk insurance.

Builders' Risk Insurance covers certain named perils, such as damage to or theft of materials, and other perils that may occur during construction. These perils are not usually covered in homeowners' insurance policies.

You may also require a special form if your old home will be unoccupied for an extended period after you move into your new home.