Insurance coverage comes in all sort of flavors, just like your favorite ice cream at your local ice cream stand.

Since each coverage type excludes or includes certain things, it is vital to understand their differences. If you do not, you could be in for a shock when it comes time to file a claim. You also may be paying for coverage you really don’t need.

Take a look at these three major types of coverage in home and commercial property insurance policies…

Basic Form Coverage
This covers all the most general types of incidents like fire, earthquakes, explosions, volcanic eruptions, etc. It’s your most “basic” form of coverage available and most policies are of this variety. In other words, it is your vanilla ice cream coverage.

The important thing to note with basic form is that only disasters or dangers listed in the policy are actually covered. No other incidents are covered.

Broad Form Coverage

This type of coverage usually covers all those dangers listed inside the basic form coverage plus additional disasters and potential hazards like burglary, ice build up, and water issues like pipes freezing.

In this type of coverage, only the mentioned disasters or dangers are covered. So, it’s real important to read the policy!

Special Form Coverage
This coverage is more inclusive and usually offers more protection against other forms of disaster. However, it is read differently. This coverage includes all types of disasters–except those excluded from the policy. This is the reverse of basic and broad form. So, it is very important to review special form to make sure a particular danger is NOT excluded.

If you need more information on insurance coverage options in California, or would like a quote, talk to  Western Property & Casualty Services in Bermuda Dunes, CA.