AD Banker Ch.5 - Homeowners

Loss by theft of jewelry, watches, furs, precious or semiprecious stones

$1,500

Loss to electronic apparatus and accessories used primarily for business

$1,500

Loss to electronic apparatus including accessories, antennas, tapes, records, discs, etc while in or upon a motor vehicle or other motorized land conveyance

$1,500

Securities, deeds, evidences of debt, manuscripts, passports, tickets and stamps

$1,500

Trailers not used with watercraft

$1,500

Watercraft, including their trailers, furnishings, equipment, and outboard motors; loss from wind or hail is excluded unless in a fully enclosed building

$1,500

Loss by theft of firearms

$2,500

Loss by theft of silverware, goldware, pewterware, etc.

$2,500

Property used for business while on the residence premises

$2,500

Money, bank notes, bullion, coins, and medals

$200

Business property off the residence premises

$500

Residence Premises

A 1- to 4-family dwelling where the insured resides, including other structures and grounds at that location.

Limits of Liability

A per occurrence limit applies to losses covered under Coverage E. A per person limit applies to losses covered under Coverage F.

Workers' Compensation Residence Employees Endorsement

A residence employee is covered under this endorsement if during the 90 calendar days immediately before the date of injury the employee has been employed by the insured for no less than 52 hours, earning no less than $100 in wages. A residence employee is defined as an employee of any insured who performs duties in connection with the maintenance or use of the residence premises, including household or domestic services, or who performs duties elsewhere of a similar nature not in connection with the business of any insured. There are also special endorsements that can be added for an additional premium to properly cover servants if they live in the home (for example, a full time nanny or caregiver).

Coverage D - Loss of Use (Indirect Loss)

Additional Living Expense If a property loss covered by Section I of the policy makes the residence premises unfit to live in, this coverage pays for any necessary increase in living expenses required to maintain the household's normal standard of living. The period for which additional living expenses will be paid is limited to the shortest time required to repair or replace the damage. Coverage periods will extend even beyond the policy expiration date, and payments do not affect the policy's liability limit. Fair Rental Value If, at the time of loss, a part of the residence premises is rented, this coverage part will pay the lost rental value, less any expenses that do not continue, such as utilities. Civil Authority If a civil authority prohibits the insured from the use of the residence premises as a result of direct damage to neighboring premises by a peril insured against, the insurer would cover the loss for no more than 2 weeks. Limits of Coverage The Coverage D limit under an HO-2, HO-3, and HO-5 is 30% of the Coverage A limit. Under an HO-4, it is 30% of the Coverage C limit. Under an HO-6, it is 50% of the Coverage C limit. Under an HO-8, it is 10% of the Coverage A limit.

Residence Employee

An employee whose duties are related to the maintenance or use of the residence premises, including household and domestic services.

Duties After Occurrence

An insured must: Give written notice of an occurrence to the insurer as soon as is practical Cooperate with the insurer in the investigation, settlement, or defense of any claims Promptly forward any notice, demand, summons, or other process to the insurer At the insurer's request, aid the insurer in making a settlement, pursuing subrogation attempts, taking the case to court, and procuring evidence For Damage to Property of Others, submit to the insurer, within 60 days after a loss, a sworn statement of loss showing the damaged property

Property not covered under Coverage C includes:

Articles separately described and specifically insured in this or other insurance Animals, birds, and fish (pets) including guard dogs Motor vehicles or motorized land conveyances, unless exempt from motor vehicle registration and used to service the insured's residence or assist the handicapped Aircraft and aircraft parts Credit cards and fund transfer cards (Unauthorized use of cards is covered) Property of a roomer, boarder, or tenant Radio equipment permanently installed in an auto Windstorm damage to personal property contained in the building unless the opening is caused by a covered peril Coverage C does not include loss caused by theft committed by an insured, or loss by theft of watercraft, trailers, and campers while away from the residence premise.

Bankruptcy of an Insured

Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy.

HO-6 (Unit-Owners Form)

Broad form named peril coverage is provided on the property of a condominium unit-owner. Coverage includes real property for which the insured is responsible under the association's agreement, and the insured's personal property while anywhere in the world. No coverage is provided for the dwelling or other structures.

Exclusions - Coverage F

Coverage does not apply to bodily injury to: A residence employee if the injury occurs off the insured location and does not arise out of or in the course of employment by an insured Any person eligible to receive benefits by Workers' Compensation or Non-Occupational Disability law Any person, other than a residence employee, regularly residing on the insured location

Section II - Exclusions Coverage E

Coverage does not apply to: Damage to property owned by an insured Damage to property rented to, occupied or used by, or in the care of an insured Bodily injury to any person eligible to receive any benefits if: Voluntarily provided Required to be provided by an insured under a Workers' Compensation law, Non-Occupational Disability law, or Occupational Disease law Bodily injury to an insured

Personal Property Endorsement

Coverage is provided on an open-perils basis with exceptions for jewelry, furs, cameras, musical instruments, silverware, golfer's equipment, fine arts, postage stamps and rare and current coins. Newly acquired property of a class already insured is automatically covered. The insurer must be notified within 30 days (90 days for fine arts) of the acquisition of the property. Coverage for the described property is worldwide. The Section I deductible does not apply to this endorsement. The scheduled personal property endorsement covers breakage of glassware caused by an earthquake.

Trees, Shrubs, and Plants

Coverage is provided up to 5% of the Coverage A limit to pay for loss to trees, shrubs, or plants damaged by the perils of fire, lightning, explosion, riot, civil commotion, aircraft, vehicles not owned or operated by a resident, vandalism or malicious mischief, and theft. This limit is provided as an additional amount of insurance and has a sublimit of no more than $500 for loss to any one tree, shrub, or plant. A loss from a windstorm, hail, or the weight of snow, ice or sleet, is not covered.

Coverage C - Personal Property

Coverage provides an additional amount of insurance equal to 50% of Coverage A. Coverage applies to the personal property owned or used by the insured, including borrowed property damaged by the insured. Coverage is provided anywhere in the world. Coverage applies to personal property, including clothing, anywhere in the world. At the insured's option, coverage may apply to a loss to property belonging to guests or servants, excluding roomers or boarders. If the personal property is usually located at a secondary residence, the coverage is limited to 10% of Coverage C or $1,000, whichever amount is higher. Personal property located at a new principal residence is covered automatically for up to 30 days without the 10% limit. The limit also applies to a student's property when away at school.

Claim Expenses (Supplementary Payments)

Covers the insurer's expenses of defending a claim and reasonable expenses incurred by an insured at the insurer's request, including the insured's actual loss of earnings up to $250 a day for assistance in the investigation or defense of a claim or suit.

Nuclear Hazard

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: Any nuclear reaction, radiation, or radioactive contamination, whether controlled or uncontrolled, except that fire resulting from the nuclear hazard is covered.

Earth Movement

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: Earthquake, including: land shock waves; tremors; landslide; mine subsidence; mudflow; mudslide; earth sinking, rising, or shifting. If a direct loss by fire, explosion, or breakage of glass or safety glazing material should occur from earth movement, the policy would then pay only for the resulting loss.

Water Damage

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: Flood, tidal water, water that backs up through sewers or drains, or water below the surface of the ground that seeps through basement walls. If a direct loss by fire or explosion due to water damage should occur, the resulting damage would be covered.

Intentional Loss

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: Losses arising out of any act committed by or at the direction of an insured with the intent to cause a loss.

Exclusions

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: Ordinance or Law Earth Movement Water Damage Power Failure Neglect War Nuclear Hazard Intentional Loss

Ordinance or Law

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: The enforcement of any ordinance or law regulating the use, construction, repair, or demolition of a structure, unless specifically provided under the policy. This would include, for example, remodeling necessary to make a building compliant with the Americans With Disabilities Act (ADA).

Power Failure

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: The failure of power or other utility service if the failure takes place off the described premises. If an insured peril occurs on the described location as a result of the power failure, the loss would be covered.

Neglect

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: The neglect of the insured to use all reasonable means to save and preserve property at and after the time of a loss.

War

Homeowners Section I Exclusions are the same as those found in the Dwelling policy. Forms don't insure against losses caused by any of the following: War, including undeclared war, civil war, insurrection, rebellion, revolution, or any warlike act by a military force. The discharge of a nuclear weapon will be deemed a warlike act, even if accidental.

Coverage E - Personal Liability

If a claim is made or a suit is brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies, the policy will pay up to the limit of liability for the damages, including prejudgment interest awarded against an insured. The policy will also provide a defense, at the insurer's expense, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit that it decides is appropriate.

Fire Department Service Charge

If the insured has liability to a fire department when it responds to protect the insured property from an insured peril, this coverage will pay up to $500 without a deductible. Note: The policy excludes fire department service charges if the property is located in the limits of the city or municipality furnishing the fire department response.

Debris Removal

If the insured incurs expenses removing debris from a loss, the policy will pay from the limits of insurance applicable to the covered property following a covered loss. When the covered loss exhausts the coverage limit, debris removal coverage will pay up to an additional 5% of Coverage A.

Property Removed

If the insured removes insured property from the premises because it is endangered by a covered peril, this coverage will provide coverage for damage (including damage while being moved) for 30 days. This coverage does not change the limit of insurance that applies to the property being removed.

Earthquake Endorsement

In California, no residential insurance policy may be issued or delivered on dwellings up to 4 units unless the insured is offered coverage for loss or damage by earthquake. The coverage may be offered in the policy itself, either by a provision or endorsement, or in a separate policy that provides coverage for loss or damage by the peril of earthquake. A single earthquake is defined as one or more earthquake shocks that occur within a 72-hour period. The deductible for earthquake coverage added by endorsement is calculated as a percentage of Coverage A (Dwelling) or Coverage C (Personal Property), whichever is greater.

Pair and Set

In the case of partial loss to a pair or set, the insurer will pay the amount of the full ACV of the set, minus the value of the remaining piece or pieces.

First Aid Expenses

Includes first aid to others, for bodily injury that is covered under the policy. This does not cover first aid to an insured.

Other Insurance

Insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy.

Mobile Home Insurance

Insurance on mobile homes may be written by adding a Mobile Home Endorsement to a Homeowners Policy, or by writing a separate Mobile Homeowners Policy. When added as an endorsement to a HO-2 or HO-3, the endorsement modifies or removes coverage as necessary and reduces the policy limits for Coverage C and D. Not all mobile homes can be added by endorsement. 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 (Personal Property) is generally written at 40% of Coverage A, instead of 50% under the Homeowners Policy.

Severability of Insurance

Insurance under the policy applies separately to each insured. This condition does not increase the insurer's limit of liability per any one occurrence.

Loss Settlement

Losses to structures under Coverage A and B are subject to a coinsurance requirement of 80% of the value of the dwelling or structure. In the event of a partial loss, if the insured carries less than this amount, the insurer will pay only the proportion of the insurance carried to the 80% required.

Damage to Property of Others

Pays the replacement cost, up to $1,000 per occurrence, for property damage caused by an insured to the property of others. Payment is made regardless of negligence. Example: Damage caused by an insured to a borrowed lawn mower. Coverage does not apply to: Damage caused intentionally by an insured who is 13 years of age or older Damage to any property owned by an insured Damage to property owned by or rented to a tenant Damage arising out of business pursuits engaged in by an insured

Increased Limit - Other Structures Endorsement

Provides for increased limits for other structures, if the automatic amount equal to 10% of the dwelling coverage is inadequate for other structures. The structures and applicable limits must be scheduled (specified), and an additional premium charge will be made for increased limits.

Exclusions - Coverages E and F

Personal Autos The policy excludes payment for bodily injury or property damage arising from the operation, maintenance, or use of a motorized vehicle, registered or required to be registered for use on public roads or property. Covered vehicles are defined as follows: Vehicles in dead (not productive) storage on an insured location Vehicles used solely to service an insured's residence (e.g. lawn tractor) Vehicles used to assist the handicapped (e.g. motorized wheelchair) Motorized golf carts, while being used to play golf Vehicles, designed for recreational use off public roads, not owned by an insured, or owned by an insured provided the occurrence takes place on an insured location Watercraft The policy excludes payment for bodily injury or property damage arising from the ownership, maintenance, or use of: Inboard motorboats owned by an insured, except while in storage Inboard motorboats, having more than 50 horsepower, rented by an insured Outboard motorboats having more than 25 horsepower (if motor is insured owned) Sailing vessels 26 feet or more in length, owned or rented by an insured Other exclusions The policy will also not cover bodily injury or property damage: Arising from the operation, maintenance, or use of an aircraft or hovercraft Arising from business pursuits of an insured Arising from the rendering of, or failure to render, professional services Arising out of premises, other than an insured location, that is: Owned by an insured Rented to an insured Rented to others by an insured Caused by war or insurrection Arising from the transmission of a communicable disease by an insured Sexual molestation, corporal punishment, or physical or mental abuse by an insured The use, sale, manufacture, delivery, or possession of a controlled substance

Inflation Guard Endorsement

Provides for automatic increases in limits of insurance for all Section I - Property coverages in order to avoid underinsurance due to inflation. The specified percentage increase is effective on a pro rata basis during the policy period.

Additional Residence - Rented to Others

Provides personal liability and medical payments coverage for the insured's liability arising out of the ownership of a residence regularly rented to others. Generally, only dwellings containing no more than 4 units are acceptable under this endorsement.

HO-5 (Comprehensive Form)

Provides the broadest coverage of any Homeowner policy. Both the dwelling and other structures and personal property and contents are insured against all direct physical damage (open perils). Losses to the dwelling and other structures are paid on a replacement cost basis, with losses to the personal property and contents paid on an actual cash value basis.

Homeowner Section II - Liability

Section II is the same in all Homeowner Policies. It provides the same coverages as the stand-alone Comprehensive Personal Liability Policy. Protection is provided for legal claims against the insured or the insured's family members from occurrences in and around the premises, and for personal activities, and pets, on and away from premises. Coverage is intended to protect against non-business, non-automobile exposures. Note: Because they are third-party insurance, Section II Coverages are not subject to a deductible.

Deductible

Subject to policy limits that apply, the insurer will only pay that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the Declarations. The standard deductible is $250.

The California Earthquake Authority (CEA)

The California Earthquake Authority (CEA) was created to sell policies of basic residential earthquake insurance to owners and residents of homes, condos, mobile homes, and apartment residences up to 4 units. The CEA is a publicly managed non-profit, and has no authority to sell any other type of insurance. Policies are marketed and serviced by participating insurers. CEA policies must be attached to a companion policy (homeowners or dwelling). When the companion policy terminates, the CEA policy terminates with it.

Guaranteed/Extended Replacement Cost Endorsement

The Guaranteed Replacement Cost Endorsement requires the insurer to replace damaged structures without regard to dollar limits or percentage of policy limits. It's also supposed to cover costs related to building code upgrades. This endorsement is uncommon in California and will not be issued by most insurers, because of the open-ended nature of the risk when rebuilding a home to revised code standards. The Extended Replacement Cost Endorsement increases coverage of the structure by a fixed amount to match increased construction or remodeling costs (usually a percentage of the Coverage A amount). This increased coverage is not always applicable to code upgrades, which may be subject to a smaller coverage increase. Producers are required to give dwelling and homeowner insureds a copy of the California Residential Property Insurance Disclosure, which outlines the parameters of these endorsements. Producers also must provide, along with the Disclosure, the California Residential Property Insurance Bill of Rights, which informs the client as to his/her rights regarding property valuation, claims, policy limits, cancellation/non-renewal, etc. If a policy does not have any replacement cost endorsements, it must clearly state: "This policy does not include building code upgrade coverage."

HO-4 (Contents Broad Form - Renter's or Tenant's Form)

The contents and personal property are insured against the broad form perils with losses paid on an actual cash value basis. No coverage is provided for the dwelling or other structures.

HO-3 (Special Form)

The dwelling and other structures are insured against all direct physical damage (open perils), with losses paid on a replacement cost basis. The contents and personal property are insured against the broad form perils with losses paid on an actual cash value basis. Included are losses to a fence, driveway or walk caused by a vehicle owned or operated by the insured.

HO-2 (Broad Form)

The dwelling and other structures are insured against the broad form perils with losses paid on a replacement cost basis. The contents and personal property are insured against the broad form perils, with losses paid on an actual cash value basis. The HO-2 does not cover loss to a fence, driveway, or walk caused by a vehicle owned or operated by the insured.

Personal Injury

The endorsement defines and adds personal injury to the policy. Personal injury includes: False arrest, detention, or imprisonment Malicious prosecution Wrongful eviction or wrongful entry by an owner, landlord, or lessor Oral or written statements that violates a person's right of privacy, slanders or libels a person, or disparages a person's goods, products, or services Personal injury does not apply to: Injury resulting from an offense related to the injured person's employment Injury caused by a conscious violation of criminal law Liability arising out of disputes between insureds Civic or public activities for which the insured is paid Injury related to a business engaged in by the insured

Home Day Care

The endorsement extends Section II coverages to the insured's home day care business. The endorsement typically imposes a policy year aggregate limit for liability and medical payments combined. The limit corresponds to the Coverage E limit shown in the Declarations, with a further per person per accident sublimit for day care related medical payments equal to Coverage F. The endorsement does not cover injury to any employee, other than a residence employee, for accidents arising out of the day care operation.

Applying to Section I & Section II Home Business

The 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. Coverage is included for premises operations, advertising injury, and personal injury. There is no coverage for professional services.

Abandonment

The insured may not abandon the property for which a total loss is claimed.

Ordinance or Law

The insured may use up to 10% of the Coverage A limit of insurance for increased costs the insured incurs due to the enforcement of any ordinance or law which requires or regulates: Construction, demolition, remodeling, renovation, or repair of that part of a covered building damaged by an insured peril The demolition or reconstruction of the undamaged part of a covered building, when that building must be totally demolished because of damage by an insured peril to another part of that covered building The remodeling, removal, or replacement of the portion of the undamaged part of a covered building to complete the remodeling, repair, or replacement to that part of the covered building damaged by an insured peril This coverage is additional insurance.

Suit Against Insurer

The insured must comply with policy provisions before any suit may be brought by the insured against the insurer.

Duties after a Loss

The insured must: Report the loss to the insurer as promptly as possible Submit a sworn, signed proof of loss Notify the police in case of theft Cooperate with the insurer's investigation Inventory and document all property damage

Concealment or Fraud

The insurer will not provide coverage to an insured who, whether before or after a loss, has intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct, or made false statements relating to insurance.

Policy Period

The policy applies only to bodily injury or property damage that occurs during the policy period.

Collapse

The policy covers a direct loss to covered property involving the collapse of a building, or to any part of the building, caused by the following specified perils: Hidden decay Hidden insect and vermin damages Weight of contents, animals, people or equipment The weight of rain collected on a roof, or The use of defective material or methods of construction Note: The policy does not cover collapse of awnings, fences, or patios caused by these perils. This coverage does not increase the limit of insurance that applies to the damaged property.

Glass or Safety Glazing Material

The policy covers the breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window. The policy does not cover loss when the dwelling has been vacant for more than 60 consecutive days immediately before the loss, unless the loss results directly from earth movement. This does not increase the limit of insurance that applies to the damaged property.

Credit Cards, Electronic Fund Transfer Card, Forgery, and Counterfeit Money

The policy provides $500 of coverage under this additional coverage for: The legal obligation of an insured because of theft or unauthorized use of credit cards Loss resulting from theft or unauthorized use of an insured's fund transfer card Loss to an insured caused by forgery or alteration of a check or negotiable instrument Loss to an insured caused by good-faith acceptance of counterfeit United States or Canadian currency Note: In the event of a credit card loss, the insured must notify the bank that issued the card and give prompt notice to the insurer. This coverage is additional insurance, and no deductible applies to this coverage.

Loss Assessment

The policy provides up to $1,000 of coverage for loss assessment against an insured as the owner or tenant of the residence premises. This coverage is additional insurance.

Landlord's Furnishings

The policy will pay up to $2,500 in any one loss for the insured's appliances, carpeting, and other household furnishings, in each apartment on the residence premises regularly rented to others by the insured, for loss caused by a covered peril other than theft. This coverage does not increase the limit of insurance applying to the damaged property.

Grave Markers

The policy will pay up to $5,000 for grave markers, on or away from the residence premises, for loss caused by a peril insured under Coverage C. Does not increase the limits of insurance that apply to the damaged, covered property.

Insured locations

The residence premises Any other premises used by the insured as a residence that is shown in the Declarations Any premises not owned by the insured where the insured is temporarily residing Vacant land, other than farmland, owned by or rented to an insured Land owned or rented by an insured where a residence is being built for the insured Individual and family cemetery plots, or burial vaults of an insured Any part of a premise occasionally rented to an insured for non-business use

Duties of an Injured Person - Coverage F

This condition applies to third party claimants who are pursuing medical payments coverage under the policy. The injured person must: Give the insurer written proof of the claim as soon as practical Authorize the insurer to obtain medical records Submit to a physical exam by a doctor of the insurer's choice when and as often as the insurer requires

Payment of Claim - Coverage F

This condition states that payment by the insurer under Coverage F is not an admission of liability.

Coverage B - Other Structures

This coverage provides an additional amount of insurance equal to 10% of the Coverage A. It applies to covered losses to related structures on the premises when they are separated by a clear space from the dwelling. Structures connected to the dwelling by only a fence or utility line are considered separate. Structures cannot be used for mercantile or manufacturing use, such as renting them to a neighbor for a woodworking business. This insurance limit may be increased by endorsement

Watercraft Liability

This endorsement amends the liability exclusions of the Homeowners forms so that bodily injury or property damage arising out of the ownership, maintenance, use, loading, or unloading of the watercraft described on the endorsement is covered. Watercraft rented to others and jet boats are not covered under the watercraft liability endorsement, nor is any watercraft while involved in any prearranged or organized race, speed contest or other similar competition. (This exclusion does not apply to sailing vessels, with or without auxiliary power.)

Personal Property Replacement Cost Endorsement

This endorsement changes the Coverage C valuation method from actual cash value (ACV) to replacement cost. The endorsement does not pay replacement cost coverage for antiques, fine arts, paintings, memorabilia, souvenirs, articles whose ages and histories contribute to their value.

California Residential Property Insurance Disclosure Form

This form is required by California Law and describes the principle insurance coverage forms for residential dwellings. It indicates the method of valuation the insured has purchased, and contains only a general description of coverages. It is not part of an insured's residential property insurance policy. The form states that an insured should read his/her policy very carefully and if there is any part that is not understood, he/she should contact his/her insurance agent or company, or call the California Department of Insurance consumer information.

HO-8 (Modified Form)

This form is used when insuring older homes where replacement value and market value are disproportionate, or where a moral hazard would exist if insurance were written in amounts equal to 80% of replacement cost. The insurance limit is written for the market value of the dwelling, and losses to the contents are paid on an actual cash value basis.

Coverage F - Medical Payments to Others

Under this coverage, the policy will pay necessary medical expenses within 3 years from the date of an accident causing bodily injury. Medical expenses include reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services. Coverage does not apply to an insured or regular residents of the insured's household (except residence employees), but provides coverage to a person on the insured location with the permission of an insured, or 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 of the insured Is caused by an animal owned by or in the care of an insured

Reasonable Repairs

When the insured's property has been damaged by a covered peril, this coverage pays the reasonable cost of necessary measures taken to protect covered property from further damage. This coverage does not increase the limit of insurance that applies to the covered property.

Insured

You and residents of your household who are your relatives; or other persons under the age of 21 and in the care of any person named in this statement A student enrolled in school full time who was a resident of your household before moving out to attend school, provided the student is under the age of 24 and your relative; or 21 and in your care Any person legally responsible for animals or watercraft owned by an insured, unless used in the course of business With respect to a motor vehicle to which coverage applies, persons using the vehicle on an insured location with insured's consent

Eligibility - Homeowners Forms HO-2, HO-3, HO-5, and HO-8

are eligible only for an owner-occupant. The dwelling must be the principal residence of the insured. Incidental occupancies, such as office or professional occupancies, are permitted.

Eligibility - 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.

Eligibility - Homeowners Forms 4 and 6

are written to insure the personal property and personal liability of occupants, but do not cover the structure. The HO-4 is designed for tenants of rental units, and the HO-6 is designed for condominium unit-owners.