Homeowners Section II (Liability)
Four types of Claim Expenses the insurer pays
"Expenses we incur", Premiums on bonds, reasonable expenses (up to $250), and postjudgement interest.
An occurrence as defined in the HO-3—Special Form (HO-3) is a(n)
An accident
Credit Card, EBT, Forgery, etc endorsement to HO3 increases
Coverage from a limit of $500 to a higher amount up to $10,000
The Claim Expenses additional coverage under Section II of a homeowners policy covers
The insured's reasonable expenses at the insurer's request.
Loss Assessment will pay up to
$1,000
Damage to property of others will pay up to
$1,000 to replace property that has been damaged by insured, regardless of fault or liablility.
Basic liability limits are
$100,000 per occurrence
The Inflation Guard endorsement gradually and automatically increases limits throughout the policy period in homeowners policies for Coverage(s)
A, B, C, and D. The endorsement provides an automatic increase in the amount of each of the Section I—Property coverages
Twelve exclusions to Section II E and F (some have numerous
Aircraft, Business, Communicable Disease, Controlled Substance, Expected or intended injury, Hovercraft, Insured's premises not an insured location, Motor Vehicles, Professional services, Sexual molestation, War, and Watercraft
The Section II Limit of Liability provision of the HO-3 stipulates that the limit of Coverage E—Personal Liability appearing on the declarations page is the total limit of coverage for
Any one occurrence
Four types of additional coverage under Section II
Claim Expenses, First Aid Expenses, Damage to Property of Others, and Loss Assessment
Section II includes
Coverage E Personal Liability, Coverage F Medical Payments to others, and additional coverages
the following are policy conditions that apply to both Sections I and II of the HO-3
Death, Liberilization, and Non-renewal
Duties of an injured person under Coverage F
Give insurer written proof of claim ASAP, authorize insurer to obtain copies of medical reports, and submit to physical exam.
Liberalization clause condition of Section II
If a policy form is broadened at no additional premium, the broadened coverage automatically applies to all existing policies of the same type.
Business exceptions to the exclusion
If insured received $2,000 or less during the year, volunteer activities, home daycare not involving compensation or to a relative
The Credit Card, Electronic Fund Transfer Card or Access Device, Forgery and Counterfeit Money Coverage—Increased Limit endorsement may be appropriate for
Insureds who hold credit cards.
The HO-3—Special Form (HO-3) policy
Is assignable only with the insurer's written consent.
Six exclusions for Coverage E only
Loss Assessment and Contractual liability, damage to the insured's property (is not a 3rd party claim), damage to property in insureds care (exception for fire, smoke, or explosion), bodily injury to persons eligible for workers comp, nuclear liability, and bodily injury to the insured.
The medical payments coverage in a homeowners policy covers certain medical expenses incurred by
Nonresidents of the insured's household. Coverage F—Medical Payments to Others covers medical payments incurred by others (not insureds or regular household residents) within three years of an injury.
Regarding the Other Insurance condition in Section II of the homeowners policy, the Coverage E limits applicable to any
Occurrence are paid as excess over any other collectible insurance except for other insurance written specifically to provide excess coverage.
Minimum requirements for a HOMEBIZ endorsement to HO3
Ownership by an insured, operation from the residence, and maximum of three employees
Motor Vehicle exclusion for any vehicle
Required by law to be registered for use on public roads or property, involved in an organized race, rented to others, used to carry persons/cargo for a fee, or is used for business purposes (except golf carts).
Nonrenewal condition of Section II
Requires insurer to give 30 days notice prior to not renewing.
Four exclusions that are applicable only to Section II F Medical Payments of Others
Residence employee off premises, bodily injury eligible for workers comp, nuclear reaction, and injury to residents.
Regarding watercraft liability coverage under the HO-3—Special Form (HO-3)?
Sailboats shorter than 26 feet owned by the insured are covered.
Coverage E includes coverage for
Third party loss exposures that result in bodily injury or property damage.
Motor Vehicle exceptions to the exclusion are
Toy vehicles powered by batteries, mv in dead storage, mv used solely to service a residence, mv used to assist the handicapped, mv used for off public roads and not owned by insured, golf carts in private communities (25 and under), and trailers not towed to or hitched to another mv.
Coverage F Medical Payments to others
is generally set at $1,000 per person per accident. Covers reasonable medical expenses when insured is not legally liable.
Severability of insurance condition
policy condition that applies insurance separately to each insured, does not increase the insurer's limit of liability for any one occurrence
The Subrogation condition in the HO-3 allows the insured to waive all rights to recover against any person provided the
waiver is in writing and made before the loss
