HO-Section I
Property
Cov A=Dwelling Cov B=Other Structures Cov C=Contents Cov D=Loss of Use (Fair Rental Value and Addditional Living Expenses)
Homeowners contains two sections:
Section I: Property
(Has a deductible)
Section II: Liability
(Cost of Defense in addition to limits)
(No deductible)
HO-Section II-Liability
Coverage E=Personal Liability
BI & PD to others
($100,000 per occurrence)
Coverage F=Medical Payments
($1,000 per person)
Homeowner’s Policy
Coverages
Cov A=declare a limit Cov B=10% of Cov A Cov C=50% of Cov A 10% of Cov C (off-premises) Cov D=30% of Cov A
Ho’s stack. Each
coverage is added to the others.
Named Insured
You and your spouse (if spouse is part of HH)
Bodily Injury
Bodily harm, sickness, or disease, including required care, loss of services, and death that results
Insured
You and residents of your HH
Including children under age 24 away at school and other ppl under 21 who are in your care.
Insured location
Your residence premises
Any part of premises where an insured is temporarily residing, vacant land (not farm land) owned by the insured, land owned by an insured on which up to a 4 family dwelling is being built as a residence for the insured and individual or family cemetery plots or burial vaults
Property damage
Physical injury to, destruction of, or loss of use of tangible property
Cov A (Dwelling)
It covers:
Residence premises, including attached structures, any materials and supplies located on residence premises and used to construct, alter, or repair the dwelling.
Cov B (Other Structures)
Other structures on the residence premises set apart from the dwelling by a clear space.
Business and farm structures are not covered.
Cov C-Personal Property
Covers personal property owned or used by an insured while it is anywhere in the world, for the perils named on the policy.
Property of others on the residence premises is also covered.
Off-Premises personal property coverage
Coverage up to 10% of the limit for Coverge C, or $1,000, whichever is more.
Personal property moved to a newly acquired principal residence is not subject to this limitation for 30 days from the time you start to move
Special Limits of Liabilty of Personal Property
$200-Gold, Money, Coins
$1500-Watercraft and Trailer/Theft of Jewelry,
Watches, Furs, Precious and Semi-
Precious Stones/ and Portable
Electronic Apparatus while in a motor
vehicle
$2500-Theft of firearms
$2500-Theft of silverware and Business
Property at the Residence Premises/
$500 away
HO excludes the following Personal Property:
Animals, birds, fish
Motor vehs ( not counting those that service premises or assist the handicapped)
Aircraft, except model or hobby
Property of roomers, unless they are related to insured
HO -Coverage D: Loss of Use
Indirect Coverage due to a covered loss.
Indirect losses are aka ‘consequential losses’ or ‘time-element losses’
Section I
All HO policies contain several additional coverages built into the contract and require no additional premium charge:
Debris removal Credit card and forgery Trees, shrubs, and plants Fire department service charge Ordinance or law Glass breakage Grave markers
HO-Section II coverages
No deductible
Cov E-Personal Liability Provides defense at company's expense Company doesn't need insured's consent to settle ($100,000 per occurrence)
Cov F-Medical Payments to Others
Coverage applies to other persons on
an insured location with permission of
the insured, and to persons off the
insured location if the injury is caused
by the activities of an insured or
caused by an animal owned
by the insured
No-Fault coverage
Section I Property has a per occurrence deductible of
$250
HO
Section II
Several Additional Coverages in addition o policy limits:
Claim expenses ($250 a day, interest accrued,
bonds)
First aid expenses
Damage to the property of others- not tenant or roomer or damaged intentionally by an insured 13 year old or older (R/C up to
$1,000 per occurrence)
HO-Section I:Perils Insured Against
HO-1, HO-2, HO-4, HO-6, and HO-8=named
peril
HO-3 and HO-5=all-risk
All HO forms cover theft, personal liability, and medical payments to others.
All coverages in property area automatically stack and are in addition to each other with no additional premium required. (DP’s Coverage A and Coverage C have to be declared separately on the Dec page and an additional premium paid, or there is no coverage.
HO Section I Conditions:
Loss settlement (80% co insurance clause)
Other Insurance (Pro-Rata Distribution or Pro-Rata Liability Clause)—- single/total
Recovered Property (Salvage)
Pair and Set Clause (Full Set- Remaining)
HO-Section II conditions
Lol will not be more than shown on the Dec page
Limit is the same regardless of the number of insureds who are sued regarding the same occurrence. This condition is known as ‘severability’ of insurance
HO Sections I and II Conditions
Conditions that apply to both property and liability sections. This includes the effects of concealment or fraud (voids policy), assignment (requires written consent of the insurer) and cancellation and/or non-renewal (10 days advance notice for nonpayment of premium)
HO Section I exclusions
On the named peril forms, you’ll find that each specified peril comes with its own set of exclusions.
Vacancy is another exclusion if more than 60 consecutive days immediately before the loss.
No coverage for freezing of plumbing unless reasonable care was used to maintain the heat or has shut off the water supply and drained all systems and appliances of water.
Even if a policy names a peril, you cannot be sure it is covered unless you read the exclusions.
In Section I of the HO-3, you’ll find excluded items in two places:
Under perils insured against (which excludes certain causes of direct loss)
AND
Under exclusions, which refers to causes of either direct or indirect loss that are excluded regardless of any contributory event.
Typical exclusions relating to the property coverages (perils insured against) contained in most all-risk forms include:
Wear and tear
Inherent vice or latent defect (built in flaw, usually natural)
Mold, fungus, wet rot
Discharge of pollutants
Settling or expansion of pavements, walls or roofs
Damage caused by birds, vermin,rodents or insects
There is no coverage for fire
If it is caused by war
Other general exclusions listed in Section I include:
Ordinance or law Earth movement Water damage Power failure Neglect War Nuclear hazards Intentional losses
Inflation Guard Endorsement
Guarantee replacement cost coverage
Keeps pace with inflation
Avoid possible future penalties for underinsurance
Personal Articles Floater
All-Risk No deductible Items Commonly Scheduled (jewelry, furs, cameras, musical instruments and fine arts) ACV List (schedule personal property to be covered on Dec page) Appraisal often requested Coverage floats Covered anywhere in the world Fine Arts covers US and Canada
Agreed, or Stated, Value Basis
Insurer will pay policy limit without the need to adjust the claim.
If part of a set is damaged, the insurer will pay the full value of the set if insured turns over the remaining undamaged property to the insurer.
All other PAFs pay claims on n ACV basis.
Personal Injury Liability Endorsement
Pay an additional premium for it.
Protects insured seeking protection from defamation, libel, and slander.
Earthquake Coverage
Deductible $250
Deductible usually a percentage of the policy limit
HO-3
Most popular HO form
HO coverage forms have the following in common. They…
Stack
Cover theft
Cover personal liability and medical payments to others ($100,000 per occurrence on Cov E and$1,000 per person on Coverge F)
Cover contents on a depreciated value basis (ACV)
Are package policies
Have special LOL
HO-4 for Renters
Contains no structures coverage
No Cov A or Cov B
Has Cov C, Cov D, Cov E, and Cov F
HO-6-Condo Unit Owners Form has
Limited Coverage A ($1,000) for alterations, built-in appliances, fixtures, and improvements
HO-3 Special Form:
All-Risk on Dwelling and Other Structures .
Contents are still named peril (broad form) but can be all-risk if HO-15 endorsement is added.
Mobile Homeowners
Mobile home is ACV
Percentages on Cov A, B, C, D, E, and F are like the HO’s.