What Does Broad Form Insurance Cover?

Broad form insurance provides a level of property protection that extends beyond basic coverage, but it is not as extensive as an “all-risk” or “open peril” policy. This type of insurance is a common option for safeguarding a dwelling, which includes the main house and attached structures. It balances comprehensive protection for the structure with more selective coverage for personal belongings.

Understanding Broad Form Coverage

Property insurance policies generally fall into categories based on what they cover: named-peril, broad form, and open-peril (also known as all-risk). A named-peril policy offers the most limited protection, covering only losses explicitly listed in the policy document. If a peril, or cause of damage, is not on this specific list, the resulting loss is not covered.

Broad form policies expand upon this by covering a wider array of named perils than a basic named-peril policy. While it still operates on the principle that only explicitly listed perils are covered, the list is significantly more extensive.

In contrast, an open-peril or all-risk policy provides the broadest coverage. This type of policy covers all causes of loss unless they are specifically excluded in the policy language. Broad form insurance occupies a middle ground, offering more protection than a basic named-peril policy but requiring the peril to be listed for coverage to apply, unlike an open-peril policy.

Common Perils Covered

Broad form insurance policies typically include a range of perils. These policies, often exemplified by an HO-2 homeowners policy, specifically list the events that trigger coverage for property damage. For instance, fire, lightning, windstorm, hail, explosion, riot, civil commotion, and damage from aircraft or vehicles are commonly covered perils.

Beyond these more basic events, broad form policies extend coverage to incidents such as falling objects, which can include damage from tree branches or other debris. They also cover damage resulting from the weight of ice, snow, or sleet, which can lead to roof collapses or other structural issues. Accidental discharge or overflow of water or steam from plumbing, heating, air conditioning, automatic fire protective sprinkler systems, or household appliances is another common inclusion.

Broad form coverage typically addresses sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, or an air conditioning system. Damage caused by artificially generated electrical current, such as power surges, is generally covered. The freezing of plumbing, heating, air conditioning, or automatic fire protective sprinkler systems, as well as household appliances, is also typically included, protecting against burst pipes and related water damage.

Typical Exclusions

Even with its expanded coverage, broad form insurance policies contain specific exclusions. Common exclusions include damage from floods and earthquakes, which typically require separate policies or endorsements for coverage.

Other standard exclusions often found in broad form policies are war, nuclear hazard, and intentional loss, where the policyholder deliberately causes damage. Neglect, such as failing to maintain the property, and losses due to government action are also generally not covered. Additionally, issues related to ordinance or law, which involve the enforcement of building codes after a loss, are typically excluded.

Broad form policies commonly exclude damage from earth movement, such as landslides or sinkholes, unless specifically endorsed. Power failure originating off-premises is another typical exclusion. Certain types of damage like mold, rust, wear and tear, inherent vice, mechanical breakdown, and smog are also usually excluded.