Principles of Risk Management and Insurance, 13th Edition

Section I Perils Insured Against

In this section, we discuss the various perils, or causes of loss, to covered property. After reading this section, you will be well-informed about covered causes of loss under the homeowners policy.

Dwelling and Other Structures (Coverage A and B)

The dwelling and other structures are insured against “direct physical loss to property.” This means that direct physical losses are covered except certain losses specifically excluded. If a loss to the dwelling or other structure is not excluded, the loss is covered under the policy.

Excluded Losses

Certain types of losses to the dwelling and other structures, however, are specifically excluded. They include the following:

1. Collapse. Losses involving collapse are specifically ...