Property insurance plays an important role in protecting a real estate investment. Property insurance policies only respond if the damage to a property is a result of a peril covered under the policy. Therefore, real estate investors must know the type of perils covered by their property insurance policy. Most property insurance policies cover perils in one of two policy forms.
- Broad Form – A broad form policy (also known as an all risk policy) essentially covers all potential risks other than those specifically excluded under the policy. Under a broad form policy, in the event of a loss, the burden of proof is on the insurance company to determine if the peril causing the loss was excluded under the policy. If the insurer cannot prove an exclusion then the loss is covered.
- Basic Form – A basic form policy (also known as a named perils policy) only covers perils defined in the policy. Any peril not specifically listed in the policy is therefore excluded. Under a basic policy form, in the event of a loss, the burden is on the insured to prove that a covered peril caused the damage.
Given the differences between the two forms, clearly, a broad form policy offers coverage that is more comprehensive. However, this coverage is usually more expensive. Most real estate investors want the peace of mind that comes with knowing their investment has as much protection as possible. With either policy form, it is important for the real estate investor to understand the actual covered perils and applicable exclusions.
REI Choice is the bi-product of a seasoned real estate investor and successful insurance executive. The ideation behind the company began in 2017 from a chance introduction and a combination of two unique visions. We are located in Dallas, TX. We are a licensed insurance agency in the State of Texas. We are able to offer these products nationwide via Arcana Insurance Services, LP.
REI Choice Insurance, LLC
519 East Interstate 30
Rockwall, TX 75087
So I checked my policies with REI Choice, and it does not say “Broad Form” or “Basic Form” anywhere. It just says “Insurance”. So what are the home insurance policies from REI Choice/Arcana that are underwritten by Lloyds of London considered?