In my last column, I reviewed the three types of property insurance protection. Basic protection insures your property against 11 named perils. Broad protection insures against 15 named perils. Special Risk protection, the best protection available,  insures against all perils except those specifically excluded by the terms of your policy.

If your policy includes the Special Causes of Loss form, some typical exclusions are the kinds of things that make sense.  For example, normal wear and tear is excluded.  Dishonest acts by members of your group are excluded.  Rain/snow/ice damage to personal property left out in the open is excluded.

· Flood (mudslide, sewer backup)
· Leakage or Seepage of over 14 days
· Nuclear Hazards
· Earthquakes
· Power Failure (off premises)
· Mechanical Breakdown
· Building Ordinance (added cost to rebuild resulting from local ordinances
   such as upgraded code requirements.
· Artificially Generated Electrical Current

Depending on your specific circumstances you can often “buy back” some exclusions.  For example, many policies allow you to buy coverage for mechanical breakdowns.

Depending on your circumstances, you can sometimes purchase a separate policy to cover an exclusion such as flood insurance.

And just to really confuse you, many insurance companies are including coverage that has traditionally been excluded in order to give their policy the competitive edge.

For example, our community theatre policy automatically includes coverage for Building Ordinance, Sewer backup, Leakage/Seepage and Off-premises Utility Failure.

When comparison shopping or merely evaluating your own insurance policy, do not be afraid to ask your insurance agent exactly what your policy covers and what it excludes.  The time to find out is when you purchase or renew your policy; not after you have filed a claim.  The person to find out from is the agent selling you the insurance; not the claims adjuster handling your claim.