Homeowners Policy

Coverage A - Dwelling

- Dwelling on the residence premises shown in the declaration, including structures attached to the dwelling. - Materials and supplies located on or next to the resident premises (usually within 100 feet) used to construct, altar, or repair the dwelling or other structures on the residence premises. For example, the pile of lumber in the insured's back yard that will be used to construct a deck off the kitchen. The policy does not cover: - Land on which the dwelling is located - Theft in, to, or from a dwelling under construction, including materials used in the construction. - Vandalism and malicious mischief including ensuing loss, if the dwelling was vacant for more than 60 consecutive days immediately before the loss. When a limit of liability is chosen for Coverage A, the other three property coverages (B,C, and D) are automatically issued at limits quailing a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. Insurers typically requires the named insured to purchase an insurance amount that is no less than 80% of the dwelling's replacement value. If 80% isn't carried then ACV will apply.

Definitions - named insured is the person or persons designated on the policy's declarations page and should be the party or parties holding deed to the property being insured.

- Insured means: - The named insured and his or her resident spouse if the resident spouse is a member of the named insured's household - Other residents of the named insured's household who are: Relatives of the named insured, meaning they are related by blood, marriage, or adoption. Under the age of 21 and in the care of any insured - Full-time students living away at college if they:Are under age 24 and related to the named insured. Were a resident of the named insured's household before moving away to college, OR Are under age 21 and in the care of the named insured or a resident relative Insured Location: - The residence premises - The part of any other premises, structures, or grounds used by the insured as a residence if it is shown in the Declarations or acquired by the named insured during the policy period for use as a residence - Any premises described above used by the named insured, such as a boat slip - Any premises not owned by an insured and where the insured is temporarily residing, such as hotel rooms and summer vacation rentals - Vacant land, other than farm land, owned by or rented to an insured - Land owned by or rented by an insured on which a 1, 2, 3, or 4-family dwelling is being built as a residence for an insured - Individual and family cemetery plots or burial vaults of an insured - Any part of a premises occasionally rented to an insured for other than business purposes, such as a banquet hall where a wedding reception is hosted Residence Employee: - an employee of, or leased under an agreement to, an insured, whose duties are related to the maintenance or use of the residence premises. These duties include household and domestic services, such as those of a gardener or nanny. - A person who performs similar duties elsewhere that are not related to any business of the insured, such as a person hired to paint the insured's house, as long as the insured doesn't own a business that paints houses. Residence Premises means: - The 1-family dwelling where the named insured resides - The 2-, 3-, or 4-family dwelling in which the named insured resides in at least one of the family units - That part of any other building where the insured resides - The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured resides, including the barn, detached garage, and swimming pool Business means: - A trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis - Any other activity engaged in for money or other compensation, EXCEPT: - Volunteer activities for which no compensation is received other than expense reimbursement - Home day care services for which no compensation is received other than the mutual exchange of day care services. - Rendering home day care services to a relative of an insuredAny other activity not described above for receives more than $2,000 in compensation during the 12 months before the current policy term. - Any other activity not described above for which no insured receives more than $2,000 in compensation during the 12 months before the current policy term. Deductible - The deductible applies to all losses unless otherwise noted in the policy. With respect to any one loss, the policy will only pay that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the declarations - subject to the policy limits.

Exclusions Applying to Section II in its Entirety

- Motor Vehicle Liability - exclusion applies to all coverages in Section II. Exceptions for exclusions: vehicles that are dead and cannot be moved on insured property, vehicles used solely to service an insured's residence, vehicles designed to assist the handicapped, motorized golf card used on a golfing facility, vehicles designed for recreation use off public roads. Coverage is given back for the following: - vehicles in dead storage on an insured location, meaning they are physically unable to be driven, because the batteries have been removed and they're up on blocks - Vehicles used solely to service an insured's residence - Vehicles designed to assist the handicapped, so long as the vehicle is being used to assist a handicapped person, or it is parked on an insured location. - A motorized golf cart used on a golfing facility for purposes approved by the facility or within a private residential community and used as approved by the community. - Vehicles designed for recreational use off public roads IF they are not owned by an insured OR are owned by an insured and used on an insured location - Aircraft liability - No Coverage is provided for "aircraft liability" as definite in the policy. - Hovercraft liability - No Coverage is provided for "hovercraft liability" as defined in the policy.

Identity Theft Expense

- This endorsement will pay up to $15,000 for expenses resulting from an instance of identity fraud discovered during the policy period. - The endorsement does not cover losses arising out of business activity. It carries a $500 deductible and the insured must notify the insurer within 60 days of the loss.

Exclusions Only Applying to Coverage E - Personal Liability

- any loss assessment, except as provided under the Additional Coverage, Loss Assessment - Under any contract entered into by an insured. Exceptions exist if the contract is a written contract that relates directly to the ownership, maintenance, or use of an insured location or the liability of others is assumed by the named insured prior to an occurrence. - property damage to property owned by an insured - Property damage to property rented to, occupied by, used by, or in the care of an insured. Provides $1,000 of coverage, on a replacement cost basis, minimize this exclusion - Bodily injury to anyone eligible to receive benefits from any Workers' Compensation, occupations disease law, or non-occupational disability law. - Bodily injury or property damage for which an insured is covered under any nuclear energy liability policy. - Bodily injury to the named insured or any insured

Exclusions Applying to Coverages E and F

- expected or intended injury is excluded and applies even if the insured intended a different outcome. Ex. Insured intended to hit Bob, but hit Joan instead. - Coverage is excluded for bodily injury or property damage arising out of, or in connection with, a business conducted from an insured location OR engaged in by any insured, regardless of where the occurrence takes place. - excluded for bodily injury or property damage arising out of the rendering of or failure to render, professional services - No coverage is provided for bodily injury or property damage arising out of a premises owned, rented by, or rented to others by an insured if the premises isn't an "insured location" - Bodily injury or property damage arising out of the transmission of a communicable disease by an insured is excluded - Bodily or property damage arising out of the use, sale, manufacture, delivery, transfer, or possession of a controlled substance is excluded. Coverage E and F don't apply to bodily injury sustained while using a watercraft that is: an inboard motorboat owned by an insured, except while in storage, an inboard motorboat with more than 50 horsepower, owned by an insured, an outbound motorboat with more than 25 horsepower, rented by an insured; sailing vessels 26 feet or mote in length, owned or rented by an insured.

All of the following are covered by Coverage F - Medical Payments to Others, except: A. An injury to the insured while mowing the lawn B. A guest is injured while visiting the insured at home C. An injury to another person caused by a residence employee while mowing the lawn D. A neighbor's injury caused by an insured's activity

A. An injury to the insured while mowing the lawn - Coverage under this section does not apply to the insured and regular residents in the insured dwelling.

Which of the following is a Section I exclusion in the Homeowners policy? A. Governmental action B. Loss assessment C. Property removed D. Debris removal

A. Governmental action

An owner of a condominium unit would purchase which Homeowner form? A. HO-6, Unit-Owners Form B. HO-4, Contents Broad Form C. HO-8, Modified Coverage Form D. HO-2, Broad Form

A. HO-6, Unit-Owners Form - covers the personal property of the condo unit owner as well as building coverage.

Which of the following is excluded under the Section II exclusions? A. Vehicle used to assist the handicapped and parked in a public lot B. Motorized golf cart approved for use while golfing C. Non-owned vehicle used off public roads D. Vehicle in dead storage

A. Vehicle used to assist the handicapped and parked in a public lot - Section II excludes coverage if a vehicle used to assist the handicapped is parked away from the insured location.

Eligibility

All homeowners forms except (Contents Broad Form (HO-4 and Unit-owners form (HO-6) require the named insured to be the owner (occupant) of the insured dwelling. The dwelling must be the principal residence of the named insured, and incidental business occupancies, such as offices, studios, and schools, are permitted. The Contents Broad Form (HO-4) and Unit-owners (HO-6) are written to insure the personal property and personal liability of the named insured who does not own the building in which he/she lives. The HO-4 is designed for tenants of residential units (I.e., dwellings and apartment units) and provides no coverage fro buildings and other structures. The HO-6 is designed for the owners and tenants of condominium or cooperative units. Coverage is provided for the portion of the building the named insured owns (or responsible for insuring), personal property, and personal liability. Eligible residential dwellings are those containing 1-4 residential units and no more than 2 roomers or boarders per family. Dwellings under construction, and that will be the primary residence of the named insured upon completion of construction, are also eligible for coverage.

Section II Additional Coverages includes Damage to Property of Others for what limit of insurance? A. $500 B. $1,000 C. $15,000 D. $12,500

B. $1,000 - Up to $1,000 will be paid under this coverage for property damage by the insured to another person's property, regardless of fault.

All of the following special limits of Coverage C are correct, except: A. $200 for money B. $2,500 for business property away from premises C. $2,500 for theft of firearms D. $1,500 for a trailer not used with watercraft

B. $2,500 for business property away from premises - Coverage C provides $500 for loss of business property away from premises.

The Water Back Up and Sump Discharge or Overflow endorsement provides how much coverage for damaged property? A. $2,500 B. $5,000 C. $10,000 D. $7,500

B. $5,000 - This endorsement provides up to $5,000 of coverage for property directly damaged by water that backs up through sewers or drains or overflows from a sump pump.

Coverage A - Dwelling does not cover vandalism and malicious mischief if the dwelling has been vacant for how many days? A. 20 B. 60 C. 30 D. 90

B. 60

Homeowner Coverage Forms

Basic Form Perils FLI: - Fire or Lightning - Internal explosion WHARV: - Windstorm or Hail - Aircraft - Riot or Civil Commotion - Vehicles - Vandalism VEST: - Volcanic Action - Explosion - Smoke - Theft (automatic without an endorsement)

The insured's home is covered by a DP-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage? A. $60,000 B. $45,000 C. $48,000 D. $58,000

C. $48,000 - For replacement cost coverage to apply the insured must have at least 80% of the homes replacement value in coverage at the time of loss. $60,000 X 80% = $48,000.

A related, full-time student away at school and under what age is considered an insured on the Homeowner policy? A. 18 B. 20 C. 24 D. 19

C. 24

The amount of insurance provided for Coverage C is what percentage of Coverage A on an HO-3, Special Form? A. 35% B. 15% C. 50% D. 25%

C. 50% - Coverage C limit is 50% of Coverage A in the standard Homeowner policy, and may be increased

The duties required of an injured person seeking coverage under Medical Payments to Others include all of the following, except: A. Promptly notify the insurer of any notice or demand B. Cooperate with the insurer C. Help the insurer in settling the claim D. Submit to a physical exam by the insurer's physician

C. Help the insurer in settling the claim

In what way is the HO-5, Comprehensive Form different from the HO-3, Special Form? A. The dwelling is insured on an open perils basis B. Personal property is valued at actual cash value C. Personal property is insured on an open perils basis D. The dwelling is valued at replacement cost

C. Personal property is insured on an open perils basis - The HO-5 Comprehensive Form covers personal property for open perils whereas the HO-3 policy covers it for named perils.

Section I - Property Coverages

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

Section II - Property Coverages

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

Exclusions Only Applying to Coverage F - Medical Payments to Others

Coverage does not apply to bodily injury: - To a residence employee if the bodily injury occurs off an insured location AND NOT in the course of the residence employee's employment by the insured. - To any person who is eligible to receive voluntarily provided or required by law under any Worker's Compensation, occupational disease law, or non-occupational disability law. - to any person other than a residence employee of an insured who regularly resides on any part of the insured location. This includes roommates and tenants as well as any insured.

Earthquake Endorsement

Coverage for a loss caused by earthquake, including land shock waves or tremors before, during, or after a volcanic eruption, is provided to property insured under Coverage A (Dwelling), B(Other Structures), and C (Personal Property). A single earthquake is defined as 1 or more earthquake shocks that occur within a 72 - hour period. - The coverage does not cover loss resulting from flood of any nature, or the cost of filling land. A deductible that is a percentage of Coverage A (Swelling) or Coverage C (Personal Property), whichever is greater, is included. The total deductible will not be less than $250.

If the watercraft is a sailing vessel or one powered by an inboard or inboard outdrive engine or motor, which coverages do not apply to bodily injury sustained by any employee in the course of employment.

Coverages E and F

The Landlord's Furnishings endorsement provides up to $ _______ of coverage. A. 500 B. 1,000 C. 2,000 D. 2,500

D. 2,500 - This endorsement provides up to $2,500 coverage for appliances, carpeting and household furnishings in a rental apartment located in the residence premises.

The automatic limit for Coverage D - Fair Rental Value is what percentage of Coverage A under an HO-3, Special Form? A. 50 B. 10 C. 20 D. 30

D. 30%

Which of the following boats is covered under the Watercraft Liability endorsement? A. A boat used to practice for a race B. A watercraft rented to another person C. A jet boat D. A 20-foot sail boat

D. A 20-foot sail boat - This endorsement covers sail boats with or without power, and property damage or bodily injury arising out of the ownership, maintenance, use, loading, or unloading of the described watercraft.

Mobile Home Insurance - Selected Property Endorsements

Depending upon insurer, this insurance may be insured on a homeowners policy by adding an endorsement. If the insurer doesn't allow the addition of such an endorsement to its homeowners policy, a separate Homeowners policy must be written. - Under ISO rules, an owner occupied home may be covered under an HO-2 or H0-3 by endorsement. This endorsement amends the definition of Coverage A (Dwelling) to include this type of home. Tenants of a mobile home may insure their personal property under an HO-4 if the insurer's underwriting guidelines permit. The separate Mobile Homeowners Policy, under Coverage A (Mobile Home), is inclusive of the mobile home itself; property installed on a permanent basis, such as appliances, floor coverings, dressers and cabinets; attached structures; and utility tanks. Coverages B, C, and D are nearly identical to the same coverages under the Homeowners policy, except that Coverage C is generally written at 40% of Coverage A instead of 50% under the Homeowners Policy. - Additional Coverage (property removed) is expanded to include up to $500 for reasonable expenses incurred in moving the mobile home when threatened by a covered peril. Separate mobile homeowners policy may be written on an open peril basis with losses settled on a replacement cost basis on the mobile home property, with additional items of property attached to the mobile home on an actual cash value basis.

Named Perils Basis

HO-2 A HO-2 B HO-2 C HO-3 C HO-4 C HO-6 A HO-6 C

Open Perils Basis

HO-3 A HO-3 B HO-5 A HO-5 B HO-5 C

Coverage E - Personal Liability BI/PD (Bodily Injury/Property Damage Coverage)

Insurance is provided for claims made and suits brought against an insured because of bodily injury or property damage caused by an occurrence for which the insurance applies. - policy pays up to the limit of liability for damages which insured an insured is legally liable, including prejudgment interest awarded against an insured. - Provides a defense, at the insurer's expense, even if the suit is groundless, false, or fraudulent. - Bias limit of insurance is $100,000 per occurrence with no aggregate limit. Limits may be increased as needed.

Section II Conditions

Limit of liability - a per occurrence limit applies to losses covered under Coverage E - Personal Liability and a per person limit applies to losses covered under Coverage F - Medical Payments to Others. Severability of Insurance - insurance applies separately to each insured; however, this condition doesn't increase the limit of liability per any one occurrence. Duties After Occurrence - named insured or another insured is responsible for performing the following duties. The insurance company has no duty to provide coverage if the named insured's failure to comply with the following duties is prejudicial to the insurance company. Duties of an Injured Person -Coverage F - Medical Payments to Others - This condition applies to third party claimants who are pursing coverage under the policy. The injured person, or someone acting on his or her behalf, must: give the insurer written proof of the claim as soon as practical - and under oath, if required; authorize the insurer to obtain copies of medical records and reports; submit to a physical exam by a doctor of the insurer's choice when and as often as the insurer reasonable requires. Payment of Claim - Coverage F - Medical Payments to Others - states that payment is not admission of liability Legal Action Against Insurer - All parties must comply with policy provisions before any suit may be brought against the insurer. Bankruptcy of an Insured - Insolvency of an insured does not relieve the insurer of its obligation under the policy. Other Insurance - Insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy. Policy Period - The policy applies to bodily injury or property damage that occurs during the policy period. Concealment or fraud - The policy does not provide coverage to an insured who, whether before or after loss, has intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct, or made false statements relation to this insurance.

Additional Coverages

Provided under both sections of the homeowners . Under Section I, a percentage of the applicable Coverages A, B, C or D limit of liability applies in certain circumstances; in other cases, additional limits of insurance apply. - Debris Removal - Reasonable Repairs - Trees, Shrubs, and Plants - Fire department Service Charge - Property removed - Credit cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money - Loss Assessment - coverage up to $1,000 is provided for the named insured's share of loss assessment charged during the policy period by a corporation or association of property owners. - Collapse - Glass or Safety Glazing Material - Landlord's Furnishings - up to $2500 - Ordinance or Law - up to 10% of Coverage A limit - Grave Markers

Personal Injury Endorsement

The endorsement adds liability coverage which is defined to include the following offenses: - False arrest, detention, or imprisonment - Malicious prosecution - The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling, or premises that a person occupies, committed by or on behalf of its owner, landlord, or lessor -Oral or written publication of material that violates a person's right of privacy, slanders or libels a person or organization, or disparages a person's or organization's goods, products, or services Coverage not provided by the endorsement does not apply: - Caused by or at the direction of the insured with knowledge that the act would violate another's right or inflict personal injury - Oral or written publication of material with the knowledge of invalidity - Criminal act commuted by an insured - Offense related directly or indirectly to the employment of an injured party by an insured.

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement Homeowners Section II

The endorsement covers the insured's liability exposure in the event that a third party claims illness as a result of exposure to mold and the insured is deemed liable for the illness. The basic liability limit is currently $50,000 on an annual aggregate basis during the policy period for all fungi, wet or dry rot, or bacteria related damages. Insurers can also offer a higher optional liability coverage limit of $100,000.

Home Day Care Endorsement

The endorsement extends Section I and II coverages to the home "business" described in the schedule provided it is conducted by an insured on the residence premises. Coverage is usually subject to the number of persons receiving day care services. - Endorsement typically imposes a policy year aggregate limit for the sum of personal liability and medical payments to others losses. The limit corresponds to the Coverage E limit shown in the Declarations, with a per person per accident sublimate for day care - related medical expenses equal to Coverage F. This endorsement does not cover injury to any employee arising out of the "business" as described.

Business Pursuits Endorsement Section II

The endorsement extends liability coverage for the insured's involvement in a business that the insured does not own, have financial control over, or have a partnership interest in. The pursuit must be named in the endorsement, and is commonly added for those in the teaching, sales, and clerical professions.

Permitted Incidental Occupancies Endorsement Section II

The endorsement modifies the Section II exclusions of liability and medical payments in connection with business pursuits of the insured to allow the necessary and incidental use of the premises for the business described on the endorsement. The premises must be occupied principally as the insured's residence; the business must be conducted by an insured; and there can be no other business conducted on the premises. The endorsement is commonly used for a studio, office, or private school type of occupancy. It does not cover bodily injury to any employee of the insured, except residence employees in the course of their employment.

Section II Additional Coverages

The following coverages are provided and payments are made in addition to the limit of liability appearing on the declarations. Claim Expenses (Supplementary Payments) - includes the insurer's expenses for defending a claim, along with reasonable expenses incurred by an insured at the insurer's request. Premiums on bonds required in a suit defended by the insurer, the insured's actual loss of earnings up to $250 a day for assistance in the investigation or defense of a claim or suit, and post-judgement interest. First Aid Expenses - Includes expenses incurred by an insured for rendering first aid to others who sustain bodily injury covered under the policy. No Coverage is provided for first aid to an insured. Damage to property of others - pays up to $1,000, at replacement cost, for property damage to property of others caused by an insured. Payment is made regardless of negligence. Ex. Damage caused by an insured to a borrowed lawn mower. Coverage that does not apply to property damage: - Covered under Section I of the policy - Caused intentionally by an insured who is 13 years of age or older - To any property owned by an insured. - To property owned by or rented to a tenant of an insured or a resident of the named insured's household. - Arising out of a business engaged in by an insured; acts or omissions in connection with premises owned, rented, or controlled by an insured that is not the insured location; the ownership, maintenance, occupancy, operation, use, loading or unloading or aircraft, hovercraft, watercraft, or motor vehicles. Loss Assessment - Provides up to $1,000 of coverage for the insured's share of loss assessments charged by a corporation or association of property owners, during the policy period. Must be the result of bodily injury or property damage not otherwise excluded by the policy or liability for an elected director, officer, or trustee who serves on the board of the association or corporation without being compensated.

Homeowner Section II

The language contained in Section II - Liability Coverages is identical in each of the homeowners forms. It provides the same coverages contained in a standalone Comprehensive Personal Liability (CPL) policy. Section II coverages are not subject to a deductible. Protection is provided for legal claims against the insured or family members from occurrences in and around the premises, personal activities, and pets, both on and away from premises. Coverage is intended to protect against non-business, non-automobile exposures of the individual or family unit. The largest single exposure a homeowner has is potential liability claims.

Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement

This endorsement provides a basic property limit option of $10,000 on an annual aggregate basis during the policy period for: - Loss caused by fungi, wet or dry rot, or bacteria - The cost of: ---Testing the air or property to confirm the existence of fungi, wet or dry rot, or bacteria ---Removal of fungi, wet or dry rot, or bacteria ---Tearing out and replacing any part of the building or other covered property to gain access to fungi, wet or dry rot, or bacteria - Insurers also can offer higher optional coverage limits of $25,000 and $50,000

Broad Form (HO-2)

This form provides named perils coverage for the dwelling (Coverage A), other structures (Coverage B), and personal property (Coverage C). The 16 named perils are: - Fire or lightning - Windstorm or hail - Explosion - Riot or civil commotion - Aircraft - Vehicles - Smoke - Volcanic eruption; losses under Coverages A and B are valued on a replacement cost basis - Vandalism or malicious mischief - Theft - Automatic without an endorsement - Falling objects - Weight of ice, snow, or sleet - Accidental discharge or overflow of water or steam - Sudden and accidental tearing apart, cracking, burning, or bulging of heating or air conditioning system (HVAC) - Freezing - Sudden and accidental damage from artificially generated electrical current Losses are valued on an actual cash value basis. This form does not cover loss to a fence, driveway or walk caused by a vehicle owned or operated by the insured.

Coverage B - Other Structures

This policy covers other structures on the residence premises that are set apart from the dwelling by a clear space. Structures connected to the dwelling by only a fence or utility line are considered set apart, for example, sheds, detached garages, built-in-pools. Other examples include a ham radio station and cell phone tower. No coverage is provided under Coverage B for 4 types of property: - Land, including land on which the other structures are located - Other structures rented or held for rental to anyone who isn't a tenant of the dwelling, unless the other structure is used solely as a private garage - Other structures from which any "business" is conducted - Other structures used to store business property that is owned by someone other than an insured or a tenant of the dwelling The insurance limit is 10% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Section 1 - Exclusions

This policy does not provide for loss caused directly or indirectly by any of the following perils, even if they are caused concurrently or over a widespread area. - Ordinance or Law - losses resulting from the enforcement of an ordinance or law regulating the construction, repairs, remodeling of a building are excluded except what is provided in additional coverage. - Earth Movement - Water Damage - Power Failure - Neglect - War - Nuclear Hazard - Intentional Loss - Governmental Action

Coverage D - Loss of Use

Three types of coverage provided under this coverage and all for indirect, or consequential, loss. The limit of insurance appearing on the declarations for Coverage D is the total limit payable for all three types of coverage provided. Ex. Wildfire burns near the insured's home. If direct damage from the wildfire occurs to the residence premises. Additional Living Expense and Fair Rental Value coverages are triggered. If direct damage from wildfire occurs to the named insured's neighbors, and a civil authority evacuates the named insured, Civil Authority Prohibits Use coverage is triggered. 1. Additional Living Expense - If a property loss covered by Section I of the policy makes the residence premises unfit to live in, the policy pays for any necessary increase in living expenses incurred by the named insured to maintain the household's normal standard of living. 2. Fair Rental Value - property loss covered by Section I of the policy makes that part of the residence premises rented to others unfit to live in, the policy pays for the fair rental value of such premises - less any continuing expenses - while it's unfit to live in. Payment is for the shortest time required to repair or replace the rented portion of the premises. 3. Civil Authority Prohibits Use - If a civil authority prohibits the named insured from using the residence premises as a result of direct damage to neighboring premises by a peril insured against under the homeowners policy, the policy pays losses under Additional Living Expenses and/or Fair Rental Value for no more than two weeks. Loss and expenses due to the cancellation of a lease or agreement are NOT covered. Limits of Coverage: The automatic limits of insurance for Coverage D vary by the homeowners form of coverage. - 30% of Coverage A for forms HO-2, HO-3, and HO-5 - 30% of Coverage C for form HO-4 - 50% of Coverage C for form HO-6 - 10% of Coverage A for form HO-8

Endorsements Unique to Mobile Home Insurance

Transportation/Permission to Move Endorsement - in addition to the covered perils listed, this endorsement will also provide coverage to protect it from impending danger or harms way. The same $500 that is used to provide coverage under the Additional Coverage "Property Removed" would apply. - Provides coverage for damage during transport, and to escape harms way - Provides up to 30 days while the mobile home is being moved to a new location for the following reasons: - Collision - Upset - Stranding - Sinking - Mobile Home Actually Cash Value Settlement Endorsement - can be used when the insured does not desire to insure the mobile home to 80% replacement cost. - Other Structures on the Residence Premises -Increased Limits - If the Coverage B limit of insurance is inadequate to insure all other structures on the residence premises (10% of Coverage A), this endorsement allows the insured to purchase increased limits for other structures listed in the endorsement. The increased limits generate an additional premium charge. - Water Back Up and Sump Discharge or Overflow - allows the insured to buy back some coverage that is excluded under the water damage exclusion. It provides up to $5,000 of coverage for direct physical loss to property insured under Section 1 (Coverages A, B, and C) caused by water or waterborne material that: backs up through sewers or drains; or overflows from a sump, sump pump, or related equipment. - Coverage provided even if the sump overflow is caused by equipment breakdown. A special deductible of $250 applies and replaced any other deductible that may otherwise apply.

Permitted Incidental Occupancies Endorsement

With respect to Section I, Coverage B (Other Structures), this endorsement covers a structure of the residence premises, specifically described, for direct physical loss by an insured peril for a specified limit of insurance when used to conduct a business. The endorsement also allows the Coverage C (Personal Property) special limit of $2,500 to apply to the described business.

Watercraft Liability Endorsement

amends the liability exclusion pertaining to certain types of watercraft liability. The exclusion is deleted and replaced with a revised exclusion, which states that Coverage E and F don't apply to "watercraft liability" if the involved watercraft is being: operated in, rented to others, used to carry people or cargo for charge, use for any business purpose

Personal Property Replacement Cost Loss Settlement

changes the valuation method for most property insured under Coverage C from actual cash value to replacement cost. It also applies to awnings, outdoor antennas and equipment, carpeting, and household appliances. - applies to jewelry, furs, and fur garments, cameras, and related equipment, musical instruments and related equipment, silverware, gold ware, pewerware, and golfer's equipment. Other cases of property separately described and specifically insured are NOT subject to this endorsement. - Property NOT eligible for coverage under this endorsement - and that is subject to actual cash value loss settlement includes antiques, fine arts, paintings and similar articles of rarity or antiquity that cannot be replaced, memorabilia, souvenirs, collector's items, articles whose ages and histories contribute to their value, articles not maintained in good or workable condition, and articles that are outdated or obsolete and are stored or not being used. - Only changes loss valuation - it doesn't change other policy provisions, including perils insured against or exclusions.

Coverage C - Personal Property

covers personal property owned or used by an insured while it's anywhere in the world. After a loss, and at the named insured's request, it covers property owned by others while it's on the residence premises occupied by an insured or property owned by a guest or residence employee while located in any residence occupied by an insured. Coverage for property at another residence is limited. If personal property is usually located at an insured's residence other than the residence premises, coverage is limited to 10% of Coverage C or $1,000 whichever is greater. Special limits of liability apply to certain categories of personal property. Property not covered under Coverage C includes: - Property specifically described and insured elsewhere, such as on another policy or by endorsement to the homeowners policy - Animals, birds, or fish - Motor vehicles, including equipment, parts, and electronic equipment and accessories that can only be operated by the motor vehicle. An exception exists (meaning coverage is provided) for motor vehicles not required to be registered for use on public roads, used solely to service an insured's residence, or designed to assist the handicapped. - Aircraft, including its parts, except model or hobby aircraft is covered if it's not used or designed to carry people or cargo - Hovercraft, including its parts Property of roomers, boarders, and other tenants—except those related to an insured Property in an apartment regularly rented, or held for rental, to others by an insured—except for property covered under the additional coverage, Landlord's Furnishings - Property rented or held for rental to others off the residence premises - Business data, credit cards, and electronic fund transfer cards—including data stored in books of account, on paper records, or on computers - Water or steam This insurance limit is 50% of the Coverage A limit of liability, does not reduce the Coverage A limit of liability, and may be increased by endorsement.

Contents Broad Form (HO-4)

known as renter's or tenant homeowners policy. It doesn't provide any coverage for the dwelling or other structures because it's designed to insure those who are tenants. The HO-4 insurers personal property under Coverage C against loss from the 16 named broad form perils found in the HO-2 and HO-3 forms. Personal property losses are valued on an actual cash value basis, as they are on the HO-2 and HO-3 forms.

Home Business Endorsement

provides for both business property and liability coverages for a variety of home businesses. The business must be owned by the named insured, or by a partnership, joint venture, or organization comprised solely of the named insured and resident relatives. - Includes coverage for advertising injury, and personal injury. No coverage for professional services

Unit-Owners Form (HO-6)

provides named perils coverage to the owner of a condominium or cooperative unit under Coverage A -Dwelling and Coverage C -Personal Property. Coverage B does not appear in this form: however, if the owners of condominiums or cooperative units wish to insure other structures, the value of other structures may be included in the Coverage A limit of insurance. This form insurers real property (building and building items) for which the insured is responsible under the bylaws of the condominium association or cooperative corporation. It also insures personal property of the insured while anywhere in the world.

Comprehensive Form (HO-5)

provides the broadest coverage of any of the homeowners forms. Coverages A -Dwelling, Coverage B - Other Structures, and Coverage C - Personal Property provide insurance on an open perils basis. This form is the Deluxe Package. It is the most costly and provides the most coverage.

Coverage F - Medical Payments to Others

purpose of these payments are to help with lawsuits. This provides immediate dollars for medical expenses in hopes of avoiding unnecessary litigation later. Basic benefit limit is $1,000 per injured person, but can be increased if desired. This will be paid before BI or PD is paid. Policy will pay necessary medical expenses that are incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Coverage does not apply to the insured or regular residents of the insured's household (except residence employees) Coverage applies to: - A person on the insured location with the permission of an insured - A person off the insured location if the bodily injury: - Arises out of a condition on the insured location or the immediate surroundings. - Is caused by the activities of an insured - Is caused by a residence employee in the course of employment by the insured. - Is caused by an animal owned by or in the care of an insured. Section II coverages are not subject to a deductible.

H0-3 (Special Form)

the dwelling and others structures (Coverages A and B) are insured on an open perils basis, meaning all perils are insured if they aren't specifically excluded in the policy. Losses to the dwelling and other structures are valued on a replacement value basis just as they are in the HO-2. Exclusions under Coverage A and B: - Collapse, except as provided by Other Coverages - Freezing of household appliances or a plumbing, heating, air conditioning, or automatic fire protective system unless the insured has taken reasonable care to maintain heat in the building or shut off water supply and drained the appliances and systems of water. - Freezing, thawing, pressure or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls. - Theft in or to a dwelling under construction, including construction related materials and supplies. - Vandalism and malicious mischief, including ensuing loss, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. - Mold, fungus, or wet rot unless resulting from accidental discharge or overflow of water or steam that is hidden from view. - Wear and tear, marring, deterioration, mechanical breakdown, latent defect, inherent vice, smog, rust, corrosion, dry rot - Smoke from agricultural smudging or industrial operations. - Pollution including discharge, dispersal, seepage, migration, or release of smoke, vapor, fumes, acids, or other chemicals unless such discharge is caused by a Coverage C Peril Insured Against - Settlings, cracking, bulging, or expansion of foundation, walls, floors, pavements, patios. - Birds, vermin, rodents, or insects - Animals owned or kept by an insured. Personal Property (Coverage C) is insured on a named perils basis that includes the same 16 perils in the Broad form (HO-2). Coverage C losses are valued on an actual cash value basis. It includes losses to a fence, driveway or walkway caused by a vehicle owned or operated by the insured. The burden of proof for losses to the dwelling and other structures falls to the insurer because coverage is provided on an open perils basis. On the other hand, the burden of proof for losses to personal property falls to the insured to show which of the 16 named perils caused the loss.

Scheduled Personal Property Endorsement

used to increase limits of liability for certain categories of personal property and to broaden the perils insured against that apply to that property. Coverage is provided on an open-perils basis and contains very few exclusions; including wear and tear, insects or vermin, war, and nuclear hazard. - Newly acquired property of a class already insured on the endorsement is automatically covered. The insurer must be notified within 30 days (90 days for fine arts) if new property is acquired. This endorsement is insured worldwide and the Section I deductible does not apply to this endorsement.

Modified Form (HO-8)

used to insure older homes when the replacement and market values of the dwelling are disproportionate or if a moral hazard would be created if insurance were written at 100% of replacement cost. - Ex. Dwelling that would be insured under this coverage form is an old 3-story Victorian home in which the insured lives on the first two floors. If the dwelling were destroyed in a loss, the insured would not want to restore or replace it exactly as it was before the loss. Instead of insuring the dwelling for its replacement value of $1,200,000, the insured would insure it for a much lower amount of insurance. - The limit of insurance chosen represent the functional replacement value of the dwelling, which is the cost to replace damaged property with property that will perform the same function and efficiency even if it isn't of like kind and quality. The HO-8 does not cover the following perils: - Falling objects - Weight of ice, sleet, or snow - Accidental discharge of water or steam - Accidental tearing apart, cracking, burning, or bulging of heating or air conditioning systems - Freezing - Sudden and accidental damage from artificially generated electrical current