Homeowner policy only
Coverage C special limits
$200 for money $500 for business property away from premises $1,500 for a trailer not used with watercraft $2,500 for theft of firearms
The HO-2
(Broad form) provides broad coverage for the dwelling and personal property. Covered perils are similair to dp-1 wit the extended coverage perils and V&MM coverage.
The HO-4
(contents broad form) insures tenants people who do not own the building where they reside. It provides broad coverage for personal property.
The HO-3
(special form) provides open peril basis coverage for loss to the dwelling and other structures. plus broad coverage for personal property.
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
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 daycare services for which no compensation is received other than the mutual exchange of day care services. Rendering home daycare services to a relative of an insured. 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.
Coverage D three types of coverages
Additional Living Expense Fair Rental Value Civil Authority Prohibits Use
Coverage D Additional Living Expense
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. Payment is made for the shortest time necessary to repair or replace the damage. If the insured must relocate permanently, payment will be made for the shortest time it takes the insured to settle at the new location.
Eligibility
All homeowners forms with the exception of the 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.
Residence Employee means
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.
Section II conditions for Bankruptcy of an Insured
Bankruptcy of an Insured Bankruptcy or insolvency of an insured does not relieve the insurer of its obligations under the policy.
All Selected Homeowner Section II Endorsements
Business Pursuits Endorsement Permitted Incidental Occupancies Endorsement Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement Watercraft Liability Endorsement Home Business Endorsment Personal Injury Endorsement Home Daycare Endorsement
Selected Homeowner Section II Endorsements-Business Pursuits Endorsement
Business Pursuits Endorsement 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.
Coverage D Civil Authority Prohibits Use
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 Expense and/or Fair Rental Value for no more than two weeks.
Section II - Additional Coverages- Claim Expenses
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. Also covered as claim expenses are 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-judgment interest.
Section II conditions for Concealment or Fraud
Concealment or Fraud The policy does 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 this insurance.
Section 1 Coverages
Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Loss of Use
Coverages A-E
Coverage A-E A-Dwelling B-Other Structures C-Personal Property D-Fair Rental Value E- Additional Living Expenses F- Medical Payments
Coverage C - Personal Property
Coverage C - Personal Property The policy 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. For example, property usually located in a student's dormitory or at the insured's summer home. This limit doesn't apply to property being moved because it's being repaired or rebuilt, located in a newly acquired principle residence during the first 30 days after being moved, or the residence premises is not fit to live in or store property in.
Section 2 coverages
Coverage E - Personal Liability Coverage F - Medical Payments to Others
Homeowner Section II Coverage E
Coverage E - Personal Liability 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. The policy pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured. The policy provides 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 it decides is appropriate. The duty to defend ends when the policy limits have been exhausted by payment of a judgment or settlement. Payments for defense costs are made in addition to the limit of liability appearing on the declarations.
Homeowner Section II Coverage F
Coverage F - Medical Payments to Others The policy will pay necessary medical expenses that are incurred or medically ascertained within 3 years from the date of an accident causing bodily injury. Legal liability, negligence, and fault do not trigger this coverage. Medical payments to others is a goodwill coverage and designed to discourage the submission of liability claims. Medical expenses are the reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices, and funeral services Coverage does not apply to the insured or regular residents of the insured's household (except residence employees). However, coverage does apply 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 1 Additional Coverage for Collapse
Coverage is provided for the abrupt falling down or caving in of a building, or a portion of a building, if the building cannot be occupied for its intended purpose after the collapse. Direct physical loss from collapse must be caused by a Coverage C named peril, hidden decay, hidden insect or vermin damage, weight of contents, equipment, animals, people, the weight of rain collecting on a roof, or the use of defective materials or construction methods. The policy does not cover collapse of awnings, fences, patios, swimming pools, underground pipes, cesspools, etc., unless damage is the direct result of the collapse. This coverage does not increase the limit of insurance that applies to the damaged property.
Section 1 Additional Coverage Trees, Shrubs, and Plants
Coverage is provided for trees, shrubs, plants, or lawns on the residence premises for the following perils: fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident of the residence premises, vandalism or malicious mischief, and theft. Coverage is NOT provided for any other peril, including windstorm or hail. The limit of insurance is up to 5% of the Coverage A limit of liability and applies to all trees, shrubs, plants, or lawns. The most paid for loss to any one tree, shrub, or plant is $500. This limit is additional insurance. No coverage is provided for property grown for "business" purposes.
Section 1 Additional Coverage for Credit Cards, Electronic Fund Transfer Card, Forgery, and Counterfeit Money
Coverage up to $500 is provided for the insured's legal responsibility because of theft or unauthorized use of credit cards, electronic fund transfer cards or access devices issued to an insured. Loss to an insured caused by forgery, alteration of a check or negotiable instrument, or counterfeit money is also covered. Exclusions exist for use of a covered card or device by a resident of the named insured's household, by a person entrusted with a card or access device, the insured's failure to comply with credit card requirements, business use of a card, or the insured's dishonesty. This coverage also includes defense.
Section II - Additional Coverages-Damage to Property of Others
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. For example, damage caused by an insured to a borrowed lawn mower. Coverage 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 of aircraft, hovercraft, watercraft, or motor vehicles.
Section 1 Additional Coverage Debris Removal
Debris Removal The policy will pay the named insured's reasonable expenses for the removal of debris of covered property if a covered loss occurs. Payment is included in the limit of insurance for covered property that is damaged. If debris removal expenses and expenses for damaged property exceed the applicable limit of insurance, this coverage will provide additional insurance equal to 5% of the limit available for such expense. For example, the insured's shed burns to the ground. The Coverage B limit of liability is $10,000. This coverage will pay a total of $10,000 plus $500 ($10,000 times 5 %) for the replacement value of the shed plus debris removal expenses. A limit of $1,000 applies for reasonable expenses to remove from the residence premises debris of the insured's trees felled by windstorm, hail, or the weight of ice, snow, or sleet.
Section II conditions for Duties of an Injured Person
Duties of an Injured Person - Coverage F - Medical Payments to Others This condition applies to third party claimants who are pursuing 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 reasonably requires.
Covereage A
Dweling- named peril basis and replacement cash value
Section I - Selected Property Endorsements-Earthquake Endorsement
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 (Dwelling) or Coverage C (Personal Property), whichever is greater, is included.
Sectiom II - Exclusions Only Applying to 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 benefits voluntarily provided or required by law under any workers' compensation, occupational disease law, or non-occupational disability law. From any nuclear reaction, nuclear radiation, or radioactive contamination - regardless of how caused. 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.
Coverage D Fair Rental Value
Fair Rental Value If a 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.
Examples of stuff covered under Coverage B
Fence Swimming Pool Detached garage
Section 1 Additional Coverage Fire Department Service Charge
Fire Department Service Charge This coverage pays up to $500 for the named insured's contractual liability to pay fire department charges incurred by a fire department that is called to save or protect covered property by a peril insured against. Covered charges must be incurred by a fire department other than that of the jurisdiction in which the covered property is located. For example, a neighboring fire department is called to assist the fire department of the jurisdiction in which the insured property is located. This coverage is additional insurance, and the policy deductible does not apply.
Section II - Additional Coverages-First Aid Expenses
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.
Examples of stuff covered under Coverage C
Furniture Home computer Money
Section 1 Additional Coverage for Glass or Safety Glazing Material
Glass or Safety Glazing Material Coverage is provided for: The breakage of glass or safety glazing material that is part of a covered building, storm door, or storm window, including loss caused by earth movement. Direct physical loss to covered property caused solely by the pieces, fragments, or splinters of broken glass or safety glazing material. NO coverage is provided for loss occurring on the residence premises if the dwelling was vacant for more than 60 consecutive days before the loss, except coverage is provided for loss caused by earthquake. This coverage does not increase the limit of insurance that applies to the damaged property.
Section 1 Additional Coverage for Grave Markers
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. This coverage does not increase the limits of insurance that apply to the damaged, covered property.
All Section 1 Additional Coverages
Grave Markers- up to 5,000 Ordinance or law- up to 10% of coverage A Landlords Furnishings- up to $2500 Glass or safety glazing material Collapse Loss Assessment- up to $1000 Credit Cards, Electronic Fund Transfer Card, Forgery, and Counterfeit Money- up to $500 Property removed Fire Department Service Charge- up to $500 Trees, Shrubs and plants- up to $500 Reasonable Repairs Debris Removal- $1000
Home Owner Forms Overview
HO-2 Broad form HO-3 Special Form HO-5 Comprehensive Form HO-8 Modified Coverage form All 6 coverages A-F HO-4 Contacts Broad HO-6 Unit-Owners Form
All Under Name Perriled Basis
HO-2 Coverage A, B and C HO-3 Coverage C HO-4 Coverage C HO-6 Coverage A and C
All Under Open Peril Basis
HO-3 Coverage A and B HO-5 Coverage A, B and C
HO-5 (Comprehensive Form)
HO-5 (Comprehensive Form) The Comprehensive Form 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. Losses to the dwelling and other structures are valued on a replacement cost basis, losses to personal property are valued on an actual cash value basis.
Selected Homeowner Section II Endorsements- Home Business Endorsement
Home Business Endorsement 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. It also includes coverage for premises operations, advertising injury, and personal injury. However, there is no coverage for professional services.
Selected Homeowner Section II Endorsements- Home Day Care Endorsement
Home Day Care Endorsement The endorsement extends Section I and II coverages to the home day care "business" described in the schedule provided it is conducted by an insured on the residence premises. The 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 sublimit for day care- related medical expenses equal to Coverage F. The endorsement does not cover injury to any employee arising out of the "business," as described.
Homeowner Section II
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.
Section I - Selected Property Endorsements- Identity Theft Expense
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.
All Section 1 Selected Property Endorsments
Identity theft Permitted Incidental Occupancies Limited Fungi, Wet or Dry Rot, or Bacteria Scheduled Personal Property Personal Property Replacement Cost Water Back Up and Sump Discharge or Overflow Other Structures on the Residence Premises - Increased Limits Mobile Home Insurance
HO-3 (Special Form)
In the Special Form (HO-3), the dwelling and other 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. The Special Form (HO-3) specifically excludes the following causes of loss under Coverage A and B: Collapse, except as provided by Additional 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 the 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 wall 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 Settling, 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 named 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 walk 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.
Examples of stuff covered under Coverage A
Installed carpeting Fireplace Tile floors
Coverage A 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.
Section 1 Additional Coverage for Landlords Furnishings
Landlord's Furnishings Up to $2,500 coverage is provided for appliances, carpeting, and household furnishings owned by the named insured and located in each apartment on the residence premises that is rented to others. Coverage is provided for the 15 named perils (the Coverage C perils, with the exception of theft). This coverage does not increase the limit of insurance applying to the damaged property.
Section II conditions for Legal Action Against Insurer
Legal Action Against Insurer All parties must comply with policy provisions before any suit may be brought against the insurer. Also, no one has the right to enjoin the insurance company as a party to any action against an insured.
Section II conditions for limit of liability
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.
Selected Homeowner Section II Endorsements- Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement 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.
Section I - Selected Property Endorsements- Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement
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. 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.
Section 1 Additional Coverage for Loss Assesment
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. The assessment must be made because of direct loss to property owned collectively by all members AND that was caused by a Peril Insured Against under this policy. This coverage is additional insurance.
Section II - Additional Coverages- Loss Assesment
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. The loss assessment 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.
All Section II Additional Coverages
Loss assesment Damage to Property of Others First Aid Expenses Claim Expenses
HO-2 (Broad Form)
Losses under Coverages A and B are valued on a replacement cost basis. Although coverage for personal property (Coverage C) is provided on the same named perils basis as the dwelling and other structures are, losses are valued on an actual cash value (ACV) basis. This form does not cover loss to a fence, driveway or walk caused by a vehicle owned or operated by the insured. 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 Vandalism or malicious mischief Theft (limited) 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 systems (HVAC) Freezing Sudden and accidental damage from artificially generated electrical current
Section I - Selected Property Endorsements Mobile Home Insurance
Mobile Home Insurance Depending upon the insurer, insurance for mobile homes may be insured on a homeowners policy by adding a Mobile Home endorsement. If the insurer doesn't allow the addition of such an endorsement to its homeowners policy, a separate Mobile Homeowners policy must be written. Under ISO (Insurance Services Office) rules, an owner occupied mobile home may be covered under an HO-2 or HO-3 by endorsement. The endorsement amends the definition of Coverage A (Dwelling) to include a mobile home. Tenants of a mobile home may insure their personal property under an HO-4 if the insurer's underwriting guidelines permit.
All Exclusions under Section II of homeowners
Motor Vehicle Liability Aircraft Liability Hovercraft Liability
Exclusions under section II Motor Vehicle Liability
Motor Vehicle Liability - The Motor Vehicle Liability exclusion applies to all coverages in Section II. No coverage is provided for "motor vehicle" liability if at the time of an occurrence, the "motor vehicle" involved in the loss was registered for use on public roads or wasn't registered but was required to be registered. In addition, no coverage is provided for vehicles that are being operated in or practicing for racing, rented to others, used to carry people or cargo for a fee, or used for any business purpose. Exceptions to the exclusion, meaning coverage is given back, exist for the following: Vehicles in dead storage on an insured location, meaning they are physically unable to be driven, because their 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.
Section 1 Additional Coverage for Ordinance or Law
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 that 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.
Section I - Exclusions
Ordinance or Law, Earth movement, water damage, power failure, neglect, war, nuclear hazard, intentional loss, government action
Section II conditions for Other Insurance
Other Insurance Insurance is excess over any other collectible insurance, except insurance written specifically as excess insurance over this policy
Section I - Selected Property Endorsements Other Structures on the Residence Premises - Increased Limits
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.
Coverage B
Other Structures-named peril basis and replacement cash value
Section II conditions for payment of a claim
Payment of Claim - Coverage F - Medical Payments to Others This condition states that payment under Coverage F is not an admission of liability.
Selected Homeowner Section II Endorsements- Permitted Incidental Occupancies Endorsement
Permitted Incidental Occupancies Endorsement 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 I - Selected Property Endorsements- Permitted Incidental Occupancies Endorsement
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.
Selected Homeowner Section II Endorsements- Personal Injury Endorsement
Personal Injury Endorsement The endorsement adds liability coverage for "personal injury," 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.
Section I - Selected Property Endorsements Personal Property Replacement Cost Endorsement
Personal Property Replacement Cost Endorsement This endorsement changes the valuation method for most property insured under Coverage C from actual cash value (ACV) to replacement cost. It also applies to awnings, outdoor antennas and equipment, carpeting, and household appliances. If the following classes of property are separately described and specifically insured in this policy and NOT subject to agreed value loss settlement, the endorsement also applies to jewelry, furs and fur garments, cameras and related equipment, musical instruments and related equipment, silverware, goldware, pewterware, and golfer's equipment. Other classes 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, collectors' 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. This endorsement only changes loss valuation - it doesn't change other policy provisions, including perils insured against or exclusions.
Coverage C
Personal Property- Named peril basis but replaced in Actual Cash Value
Section II conditions for Policy Period
Policy Period The policy only applies to bodily injury or property damage that occurs during the policy period.
Section 1 Additional Coverage for property removed
Property Removed Coverage is provided for loss to covered property by any cause while being removed from a premises endangered by a peril insured against. Coverage applies for no more than 30 days while removed. For example, if a wildfire threatens the insured's home and property is removed, loss to the removed property that is caused by flood or earthquake would be covered during the first 30 days the property is removed. However, if flood threatened the insured's home, coverage wouldn't apply because the endangering peril is not a peril insured against.
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
Section 1 Additional Coverage Reasonable Repairs
Reasonable Repairs When the insured's property has been damaged by a covered peril, this coverage pays the reasonable costs incurred by the named insured to take necessary measures to protect covered property damaged by a covered peril against further damage. For example, a tree falls on the dwelling's roof. The insured's expenses to place a tarp over the hole in the roof would be covered. This coverage does not increase the limit of insurance that applies to the covered property.
Section I - Selected Property Endorsements- Scheduled Personal Property Endorsement
Scheduled Personal Property Endorsement This endorsement is 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. Some additional exclusions and restrictions apply for fine arts, postage stamps, coins, and the breakage of art glass windows, glassware, statuary, marble, bric-a-brac, porcelains, and similar fragile articles. This endorsement is also referred to as a Personal Article Floater. 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. Scheduled property is insured worldwide and the Section I deductible does not apply to this endorsement.
Section II conditions for Severability of Insurance
Severability of Insurance Insurance applies separately to each insured; however, this condition doesn't increase the limit of liability per any one occurrence.
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.
HO-4 (Contents Broad Form)
The Contents Broad Form is also known as the 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 insures 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.
HO-8 (Modified Form
The Modified Coverage Form is 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. An example of 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 should 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
HO-6 (Unit-Owners Form)
The Unit-owners Form 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. The form insures 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.
Deductibles
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. Although the standard homeowners policy deductible is $250, an insured may choose a higher or lower deductible. As the deductible increases, the policy premium decreases. For example, the premium for a policy with a $1,000 deductible will be less than a premium for a policy with a $250 deductible.
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.
Section 1 Coverage A - Dwelling
The policy covers Dwelling on the residence premises shown in the declaration, including structures attached to the dwelling. Materials and supplies located on or next to the residence premises used to construct, alter, 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.
Section 1 Coverage B - Other Structures
The 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. 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. This 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.
Insured Location means
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
Coverage limit for coverage C
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
Coverage D - Loss of Use
Three types of coverage are provided under Coverage D and all are 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. For example, a 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. Types Additional Living Expense Fair Rental Value Civil Authority Prohibits Use
Section I - Selected Property Endorsements Water Back Up and Sump Discharge or Overflow
Water Back Up and Sump Discharge or Overflow This endorsement 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 I (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 is provided even if the sump overflow is caused by equipment breakdown. A special deductible of $250 applies and replaces any other deductible that may otherwise apply. Coverage doesn't apply if damage is caused by the negligence of an insured.
Selected Homeowner Section II Endorsements- Watercraft Liability Endorsement
Watercraft Liability Endorsement The 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 or practicing for any prearranged or organized race, speed contest, or competition. Sailing vessels and predicted log cruises are not excluded Rented to others Used to carry people or cargo for a charge Used for any "business" purpose If the watercraft is a sailing vessel or one powered by an inboard or inboard-outdrive engine or motor, Coverages E and F don't apply to bodily injury sustained by any employee in the course of employment. Such exclusion applies if the employee's principal duties are in connection with the maintenance, operation, or use of a watercraft designated in the endorsement.
How Coverage A liability applies
When a limit of liability is chosen for Coverage A - Dwelling, the other three property coverages (B, C, and D) are automatically issued at limits equaling a specific percentage of the Coverage A limit of liability. If these limits are inadequate, the insured may purchase higher limits. In most cases, the insurer requires the named insured to purchase insurance in an amount that is no less than 80% of the dwelling's replacement value. If, at the time of a loss, the amount of insurance on the dwelling is less than 80% of the dwelling's replacement value, a penalty will be applied to partial losses. If 80% Replacement cost is not carried, ACV will apply.
The homeowners policy is considered a multtiline policy because
it provides property and liability insurance in a single policy.
Section 2 provides
liability and medical payments insurance
Section 1 provides
property insurance
