The most typical home insurance are HO-2 and HO-3. An HO-2 policy provides the 16 perils that are covered:

Fire or lightning; windstorm or hail, explosion; riot or civil commotion; damage caused by aircraft; damage caused by vehicles; smoke; vandalism or malicious mischief; theft; volcanic eruption; falling objects; weight of ice, snow, or sleet; accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance; sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system; freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance; or sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component) (www.insure.com ) 

An HO-3 policy on the other hand, covers everything that is not included in the list of exclusions provided in the policy. The following are the exclusions in a standard HO-3 policy:

•  Ordinance or law, such as demolition or construction required to bring your house up to code. 

•  Earth movement, such as shockwaves, sinkholes, landslides and mudflows. 

•  Water damage, such as floods, sewer back-ups and water that seeps through the foundation. 

•  Power failure. 

•  Neglect, meaning you failed to take reasonable means to save your property during or after a loss. 

• War, including undeclared war and civil war. 

•  Nuclear hazard. 

•  Intentional loss, meaning something you did on purpose with the intent to cause a loss. 

•  Governmental action, such as the destruction, confiscation or seizure of covered property by any governmental or public authority. 

• Loss to property resulting from faulty zoning, bad repair or workmanship, faulty construction materials, and defective maintenance. (www.insure.com )