For years I've seen, and sometimes been in, arguments over insurance and what it does or does not cover when -- basically whether "insurance is for your own stupidity" v. "you're not insured for stupidity."
I think I found the key answer finally -- do you have HO-2 or HO-3 Insurance?
HO2 – Broad Form
A more advanced form that provides coverage on a home against 16 listed perils (including all 11 on the HO1). The coverage is usually a "named perils" policy, which lists the events that would be covered.
HO3 – Special Form
The typical, most comprehensive form used for single-family homes. The policy provides "all risk" coverage on the home with some perils excluded, such as earthquake and flood. Contents are covered on a named peril basis. (Note: "all risk" is poorly termed as it is essentially named exclusions (i.e., if it is not specifically excluded, it is covered).)
Things covered by home insurance policies
There are a variety of standard homeowners insurance policies. The most basic policy, HO-1, covers only a few perils and insurance companies have stopped selling it in most states. The HO-2, generally called the "broad form," covers 16 perils. They are:
Fire or lightning.
Windstorm or hail.
Riot or civil commotion.
Damage caused by aircraft.
Damage caused by vehicles.
Vandalism or malicious mischief.
Weight of ice, snow or sleet which causes damage to a building.
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 or 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.
Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component).
An HO-3 policy is often called a "special form" because it covers everything except certain perils outlined in the policy. It is the most popular type of policy. The standard HO-3 policy contains these exclusions:
Ordinance or law, such as demolition or construction required to bring your house up to code.
Earth movement, such as earthquakes, shockwaves, sinkholes, landslides and mudflows.
Water damage, such as floods, sewer back-ups and water that seeps through the foundation.
Neglect, meaning you failed to take reasonable means to save your property during or after a loss.
War, including undeclared war and civil war.
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.
I believe the translation is (and ask your agent if you're really wanting to know the real answer):
HO-2, your home burns down because of an improperly installed, un-permitted stove but you didn't lie to the insurance company about having that wood stove: They pay. It's Named Peril, fire is a peril even if it's caused by your stupidity.
HO-3, your home burns down because of an improperly installed, un-permitted stove...sorry that's bad workmanship, defective maintenance, failure to follow code, and probably other stuff named as excluded. You're stupid and and we keep our money.
In general, this should mean HO-2 is Named Perils unless you intentionally destroy your own property. HO-3 is All Perils not excluded...and the exclude your own stupidity if it destroys your property.