Two Kinds of Homeowners Insurance

Homeowners insurance policies can be divided into two categories: "Named-Peril Insurance" and "All-Risk Insurance." Named-peril policies pay only for the causes of loss specified in the policy. All-risk insurance covers losses except those specifically excluded in the policy.

Here is a list of the named perils covered:

1. Fire or lightning damage
2. Windstorm or hail damage
3. Damage caused by explosion
4. Damage caused by riots or civil disturbance
5. Aircraft damage
6. Vehicle damage
7. Smoke damage
8. Vandalism or malicious mischief
9. Loss from theft
10. Glass breakage
11. Damage caused by volcanic eruption
12. Falling objects
13. Damage caused by collapse due to weight of ice, snow or sleet
14. Freezing damage to plumbing, heating/air conditioning or household appliances
15. Accidental discharge or overflow of water from plumbing or a heating/air- conditioning system
16. Damage from a sudden and accidental discharge of an artificially generated electrical current
17. Damage caused by sudden and accidental tearing apart, cracking, burning or bulging of a heating/air-conditioning system, a fire-prevention sprinkler system or an appliance for heating water

How to Get the Lowest Rates
Insurers frequently award lower rates to homeowners who guard against theft, accidents and other losses. And companies may provide discounts to premium for multiple-customers (home and auto). Here are some things you can do that generally qualify for lower premiums:

• Secure your home with dead bolts and window locks.
• Install a security system with outside signal and connection to local police.
• Install and maintain smoke detectors.
• Install a sprinkler system for fire.
• Install a fire alarm that automatically alerts the local fire department.
• Stop smoking.
• Keep walks and entrance ways clear of snow and ice.
• Purchase your auto and home insurance from the same company.