The explosion of a hot water heater causing major damage to the house is covered under the HO-2 policy for several key reasons. The HO-2 policy, also known as the Broad Form Homeowners Insurance, provides coverage for various perils specified in the policy. Among the covered perils are explosions, which explicitly includes situations like a hot water heater bursting.
The coverage is not contingent upon the age or condition of the hot water heater, eliminating considerations about whether the heater is new. Explosion coverage is broad, as it encompasses accidental occurrences, making it clear that as long as the explosion is not due to malpractice or intentional actions, it should be covered. This is a foundational aspect of homeowners insurance—to protect homeowners from unexpected and potentially devastating financial losses caused by various catastrophic events, including explosions.
Thus, the rationale for the coverage under the HO-2 policy supports the assertion that damage from the explosion of a hot water heater is indeed covered.