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Figure 35.5Losses Covered by Homeowner’s PolicyBasic (HO-1) Basic (HO-2) Comprehensive (HO-5)1. Fire or lightning2. Loss of property removedfrom premises endangeredby fire or other perils3. Windstorm or hail4. Explosion5. Riot or civil commotion6. Aircraft7. Vehicles8. Smoke9. Vandalism and maliciousmischief10. Theft11. Breakage of glassconstituting a part ofthe building12. Falling objects13. Weight of ice, snow, sleet14. Collapse of building(s) or anypart thereof15. Sudden and accidental tearingasunder, cracking, burning, orbulging of a steam or hot waterheating system or of appliancesfor heating water16. Accidental discharge, leakage, oroverflow of water or steam fromwithin a plumbing, heating, orair-conditioning system, ordomestic appliance17. Freezing of plumbing, heating,and air conditioning systems,and domestic appliances18. Sudden and accidental injuryfrom artificially generatedcurrent electrical appliances,devices, fixtures, and wiringAll perilsEXCEPT: earthquake, landslide,flood, surface water, waves,tidal water or tidal wave,the backing up of sewers,seepage, war, and nuclearradiationpersonal injury, and liability for negligent destruction of the rentedpremises.Fire InsuranceFire insurance covers loss resulting directly from an unfriendly orhostile fire. Damages that result from trying to put out a fire, or fromtheft or breakage while attempting to remove insured goods to a safelocation are considered directly related to the fire and are usually coveredby a fire insurance policy. Damage caused by soot, smoke, water, orheat from a nearby burning building is also covered by fire insurancemost of the time.Coinsurance ClausesCoinsurance is a provision in an insurance policy that limits yourrecovery for a loss if the property is not insured for its full replacementvalue. For example, if your insurance policy has an 80 percent coinsuranceclause, your house must be insured for 80 percent of its replacementvalue to receive full reimbursement for a loss (see Figure 35.6).HOMEOWNER’SINSURANCECategories of insurancepolicies are determinedby the number of perilsthey insure against. Canhomeowner’s insurancecover you against all perils?Chapter 35: Insurance Protection 763