Homeowners Insurance: Section I of the HO-3

special sublimits of liability: loss by theft of jewelry and furs

$1,500

special sublimits of liability: other trailers

$1,500

special sublimits of liability: securities, manuscripts, deeds, IOU's, tickets and stamps

$1,500

special sublimits of liability: watercraft and their trailers, motors and equipment

$1,500

special sublimits of liability: loss by theft of firearms

$2,500

special sublimits of liability: loss by theft of silverware, goldware and peterware

$2,500

special sublimits of liability: business property of any kind

$2,500 on premises $1,500 off premises

special sublimits of liability: money, gold silver, platinum, coins, medals

$200

HO-3 deductible

- applies on a per loss basis to section I losses - minimum is $500 - if two or more deductibles apply to a loss , only the highest deductible amount will apply

HO-3 Insures coverages A & B (ensuing losses?)

- covers all losses not excluded - covers ensuing losses unless specifically excluded

HO-3 loss settlement (coverage A and B)

- if you're insured for at least 80% of the RC of your home, we'll pay the RC without deducting for depreciation - if less than 80% we'll pay the greater of the a. ACV or b. amount of insurance divided by 80% of RC) times the amount of the loss

HO-3 insurable interest and limit of liability

- we don't pay more than the limit of insurance or an item's total value

HO-3 your duties after a loss

-tell us about it promptly - cooperate with us -prepare an inventory - tell the police if it was a theft - file a signed detailed proof of loss within 60 days of our request

HO-3 Section I additional coverages

1. 5% additional for debris removal 2. reasonable repairs 3. additional coverage for plant and lawns (up to $500 per plant, up to 5% of coverage A) 4. fire department service charge ($500 additional) 5. property removed 6. credit and fund transfer card, forgery and counterfeit money ($500 additional) 7. loss assessment ($1,000 additional) 8. collapse 9. glass 10. landlord furnishings (up to $2,500 per apartment) 11. ordinance or law (up to 10% of coverage A limit) 12. grave markers and mausoleums ($5,000 for loss caused by coverage C perils

Components of HO-3 Form

1. Declarations page 2. Insuring agreement 3. Definitions section 4. Section I - Property Coverages 5. Section II - Liability Coverages 6. Endorsements

Coverage D: Loss of Use applies under these circumstances (3)

1. additional living expenses 2. fair rental value 3. loss of use due to civil authority

exception for water damage coverage

1. an accidental discharge or overflow of water or steam from a plumbing, heating, A/C or sprinkler system 2. a household appliance on the residence premises 3. an off-premises storm drain or water, steam or sewer pipe

final adjustments

1. claim history 2. insurance score 3. package policy credits

base premium is influenced by

1. dwelling location 2. public protection class 3. construction factors 4. coverage amount 5. policy form

base premium adjustments

1. endorsements 2. unusual construction 3. deductible changes

HO-3 insures coverage C against 16 named perils

1. fire and lightning 2. windstorm and hail 3. explosion, riot and civil commotion and aircraft 4. vehicles 5. smoke (sudden and accidental) 6. vandalism 7. theft 8. falling objects 9. weight of ice, snow or sleet 10. accidental discharge of water or steam from heating, cooling, plumbing and sprinkler systems 11. sudden and accidental tearing apart 12. freezing 13. damage from man-made electricity 14. volcanic eruption

Three categories of potential insureds under ISO 2011 HO insurance program

1. homeowners 2. renters 3. condominium owners

HO-3 excludes under A,B, C and D loss caused by

1. ordinance or law 2. earth movement 3. water damage 4. power failure 5. neglect 6. war and nuclear hazards 7. intentional loss 8. governmental action

HO-3 excludes (under A, B and D)

1. perils listed under section I exclusion 2. collapse 3. freezing of a building system containing water 4. freezing, thawing or other pressure of water or ice to outdoor property 5. theft of construction materials 6. vandalism (over 60 days) 7. mold, fungus and wet rot 8. wear and tear, marring deterioration inherent vice 9. smoke from agricultural and industrial operations 10. pollutants 11. settling 12. damage caused by animals

Coverage C excludes

1. property more specifically insured elsewhere 2. any kind of animal 3. motorized vehicles 4. aircraft 5. hovercraft 6. property of roomers, boarders and tenants not related to any insured 7. property in an apartment rented to others 8. off-premises property rented or held for rent 9. business data, whether paper or electronic 10. credit and fund transfer cards 11. water and steam

standard limit of Coverage D

30% of the coverage A limit

Divisions of Section I

Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use Additional Coverages

Divisions of Section II

Coverage E - Personal Liability Coverage F - Medical Payments to Others Additional Coverages

HO-3 volcanic eruption period

all eruptions within 72 hours are considered one eruption

Final homeowners premium

base premium + base premium adjustments + final adjustments

HO-3 suit against us

can't sue us more than two years after the loss

HO-3 policy period

coverage only applies to losses that occur during the policy period

Coverage A Dwelling insures

described owner-occupied one-family to four-family dwelling; its attached structures; and any building materials used to construct, alter or repair either

HO-6 Unit Owners Form

designed for condominium and cooperative apartment owners - provides broad form named perils coverage on personal property and some building items - limited dwelling coverage (unit improvements and betterments)

HO-8 Modified Coverage Form

designed for owner-occupants of homes that do not meet the eligibility requirements of other homeowners policies -provides limited named perils coverage on buildings and personal property - damage will be covered on a functional replacement cost basis - (historic homes)

HO-3 Special form

designed for owner-occupants of one-family to four-family dwellings - provides coverage on buildings for all causes of loss not otherwise excluded and on personal property for the broad form perils named in the HO-2

HO-2 Broad Form

designed for owner-occupants of one-family to four-family dwellings - provides named perils coverage (covered causes of loss are listed in the policy) for both dwelling and other structures and personal property

HO-5 Comprehensive Form

designed for owner-occupants of one-family to four-family dwellings - provides open perils coverage on both dwelling and other structures and personal property

HO-4 Contents Broad Form

designed for tenants - provides no dwelling coverage and covers personal property on a named perils basis

package policy credits

discounts for placing more than one line of business with the insurer

HO-3 abandonment of propert

do not have to accept abandoned property

concurrent causation exclusion

excludes loss to property under coverage A & B caused by 1. weather conditions 2. governmental actions 3. faulty or defective planning, zoning or design BUT any ensuing loss is covered unless excluded by another policy provisions

HO-3 loss settlement coverage C (personal proeprty)

for personal property we'll pay lesser of ACV or the cost to repair or replace

definitions section

gives the special meanings of any words that appear in the policy within quotation marks - words not in quotation marks are given their common, dictionary meanings

declarations page

identifies the insurer, the policyholder, the policyholder's residence, the coverage limits, the premium, the section I deductible, policy effective dates, mortgage holder and any applicable forms and endorsements

additional living expenses

if a covered loss makes you move from your main home, we'll pay the extra costs of maintaining your normal standard of living

loss of use due to civil authority (for how long?)

if due to an insured peril at a neighboring premises a civil authority makes you move, we'll pay additional living expenses and fair rental value for up to two weeks

fair rental value

if part of your property is rented or held for rental we'll pay your property's fair rental value if it becomes uninhabitable due to a coverage cause of loss

HO-3 recovered property

if property is recovered you can have it if you want it but if you take it we will not pay for it or you will pay us back for it

HO-3 appraisal

if we disgaree on the amount of loss, we'll choose and pay our own appraiser decision of any two binds us both

Coverage A excludes

land, including land on which the dwelling is located

loss payable clause HO-3

loss payees listed in the declarations are included as insureds - must notify loss payees of cancellation or non renewal - settlement checks are made payable to both you and the loss payee

HO-3 our option

may repair or replace property instead of giving you money

functional replacement cost basis

modifies the loss settlement provision on buildings to pay for repairs with less expensive materials or methods that are functionally equivalent to the dwelling's obsolete antique or custom materials or methods

HO-3 concealment or fraud

no insured is covered if any insured 1. conceals or misrepresents material information 2. commits fraud 3. makes false statements regarding the insurance whether before or after the loss

insurance score

numerical ranking based on credit factors that indicate financial stability

HO-3 nuclear hazard clause

only direct loss by fire resulting from nuclear hazards is covered

Coverage B, Other Structures insures (What is Typical Limit)

other structures on the residence premises separated from the dwelling by a clear space -- including building materials to be used for coverage B structures - provided with additional limit of 10% of the coverage A limit (can be increased by endorsement)

condominium owners

owner-occupants of private residential condominiums

homeowners

owner-occupants of single family dwellings and eligible two-family to four family dwellings

HO-3 loss to a pair or set

pay less or a. the cost to replace he damaged or missing part b. the value of the pair or set before the loss minus its value after the loss

HO-3 loss payment

pay within 60 days of receiving your proof of loss

renters

people who rent of lease an apartment, house, mobile home, trailer home, or condo

insuring agreement

states the insurer's promise to provide the insurance described in the policy in return for the insured's premium and compliance with all applicable policy provisions

Coverage B excludes

structures used for business or to store business property and structures held for rental (unless to a tenant of the described dwelling or for garage use)

HO-3 mortgage clasue

we'll make any coverage A or B settlement check out to you and to your mortgage lender - notify the bank at least 10 days before canceling or non renewing

HO-3 other insurance

we'll pay our proportionate share by limits of insurance

HO-3 no benefit to bailee

won't cover any professional bailee

Coverage C Personal Property insures (What is typical limit?)

your personal property anywhere - standard limit equals 50% of Coverage A limit - property usually located at another residence and property kept in a self storage warehouse are each insured up to the greater of 10% of coverage C or $1,000