Homeowners 2

Question 1

ISO forms and their functions

Answer 1

• HO-2: Broad Form (cheap but provides more coverage than HO-8.)
• H0-3: Special Form (Middle of road.)
• HO-4: Contents Broad form (renters)
• HO-5: Comprehensive Form (Best coverage and high end)
• HO-6: Condominium Form (Condo)
• HO-8: Modified Coverage Form (Limited coverage)

Question 2

Types of coverage

Answer 2

• Named peril Coverage
• Extended coverage
• Broad form coverage

Question 3

Extended coverage endorsements cover these 7 events along with the perils of fire and lightening:

Answer 3

• Windstorm
• Hail
• Explosion
• Riot or civil commotion
• Vehicles
• Aircraft
• Smoke

Question 4

Broad Form Endorsement covers these 9 events:

Answer 4

• Vandalism
• Theft
• Falling objects
• Weight of ice, snow, or sleet
• Damage from a steam or hot water system
• Accidental discharge or overflow of water or steam
• Freezing of plumbing, heating, air conditioning systems, or domestic appliances
• Sudden and accidental damage from artificially generated electrical current
• Sudden and accidental tearing apart, cracking, burning or bulging.

Question 5

Broad form perils (18):

Answer 5

• Fire: has to be hostile (uncontrollable or started accidentally)
• Lightning: natural (not artificial)
• Explosion: not covered are explosions outside covered building, burst water pipes, electrical arcing, pressure relief device rupture, storm boiler or steam pipes owned by insured.
• Windstorm: hurricane, tropical storm, tornadoes included, but not limited to.
• Hail: 2 exclusions.
• Riot: 3 or more people trying to disturb the peace with violent public disorder.
• Aircraft: Does not require physical contact ( could be sonic boom from nearby crash). Covers damage by model and hobby aircraft.
• Vehicles: Does not require physical contact. (HO-2 form excludes vehicle damage to fence driveway or walkway caused by a resident of the insured home.)
• Smoke: Must be accidental and sudden (Excludes damage caused by agricultural smudging or industrial operations.)
• Theft: excluded: by insured, under construction, rental section of non insured, off premises at secondary property.
• Falling objects: no coverage inside building unless object punctures roof or wall first before damaging inside property then it is covered.
• Ice and snow: weight to properties and property inside
• VMM (vandalism and malicious mischief): Not for buildings vacant (no people or belongings) more than 60 consecutive days immediately before the loss. Under construction is not vacant.
• Discharge: Excludes system or appliance that it escaped from, 60+ days vacant properties, sumps, constant seepage, freezing, off premises accidental discharge or overflow.
• Tearing apart: rupture, cracking, burning or bulging of steam or hot water heating system (or appliance for heating water), AC system, fire sprinklers. Excludes coverage for system or appliance that was affected.
• Freezing: Excludes homes that are vacant, unoccupied or under construction, unless insured maintains reasonable care to maintain heat, or shuts off water and drains system.
• Artificial current: Excludes any electrical current that is not naturally generated, for example, lightning. Excludes losses to circuitry, tubes, transistors, electronic components of appliances, fixtures, computers, or electronics.
• Volcano: Excludes, earthshakes, landshock waves or ground tremors.

Question 6

Exclusions to wind and hail:

Answer 6

1: watercraft, trailers, furnishings, equipment, and outboard engines or motors only covered when inside fully enclosed building.
2: Damage caused by rain, sand, sleet, snow, or dust is only covered if the wind or hail first made the opening that allowed the elements in to a building to damage personal property, (building itself does not apply accept in the Broad Form).

Question 7

Named peril forms:

Answer 7

1. ) H0-2 (Broad): insures all 17 Broad Form perils; Covers insured’s house and personal property.
2. ) HO-4 (Contents Broad Form): renters; insures against all Broad Form perils; only personal property.
3. ) HO-6 (Unit Owner’s Form): aka Condo Form; owner’s belongings; insures all finished surfaces of the individual condominium unit; insures against broad form perils.
4. ) HO-8 (Modified Coverage Form): Covers fewer perils; Covers property at ACV (deducts depreciation for age, condition and wear); considers fair market value of home; cheaper. Covered perils: Fire, lightning, windstorm, hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism or malicious mischief, theft, volcanic eruption.