Insurance pt 4.
Debris Removal Additional Coverage: HO
A coverage provided in many Property contracts that reimburses the insured for expenses involved in removing debris produced by a loss from a Peril insured against. This is not an additional amount of insurance, but the homeowners policy will allow for an additional amount of debris removal expense if the amount to be paid for the actual damage to the property, plus debris removal expense is more than the limit of liability (additional 5% of the applicable limit). Debris removal expense could apply to coverage A, B or C.
Removal of trees are okay in what premisse HO
A homeowners policy also will pay an insured's reasonable expense for the removal of the trees from the residence premises: The insured's tree(s) felled by the peril of windstorm or hail or weight of ice, snow, or sleet; or A neighbor's tree(s) felled by a Coverage C peril (broad form perils), provided the tree:Damages a covered structure;Does not damage a covered structure, but blocks a driveway on the residence premises that prevents a motor vehicle that is registered for use on public road from entering or leaving the residence premises; orBlocks a ramp or other fixture designed to assist a handicapped person to enter or leave the dwelling The total amount of coverage included for tree removal is $1,000 with a sublimit of $500 for the removal of any one tree.
Form structure of home owners policy
Agreement; Definitions; Section I - Property Coverage; Section I - Perils Insurance Against; Section I - Exclusions; Section I - Conditions; Section II - Liability Coverages; Section II - Exclusions; Section II - Additional Coverages; Section II - Conditions; and Sections I and II - Conditions.
Loss of use coverage d HO
All homeowners policies contain the Loss of Use coverage, which is a combination of Coverage D (Fair Rental Value) and Coverage E (Additional Living Expense) in the dwelling property policy. If a loss covered under the policy makes part of the residence premises not fit to live in, the insurer will cover loss of rent and additional living expenses for the shortest time required to repair or replace the damage. If the insured permanently relocates, additional living expenses will be paid only for the shortest time required to settle elsewhere.
Waiver or Change of Policy Provisions HO
Any waiver or change of policy provisions must be in writing by the insurer.
dwelling loss of use HO
As in the dwelling policy, additional living expenses include any necessary increase in living expenses incurred by the insured so that the insured's household can maintain its normal standard of living. If loss of use results from the order of a civil authority, the additional living expenses and fair rental value payments are limited to a maximum period of 2 weeks.
what are the deintions included in HO Forms
Bodily Injury
Bodily injury Ho Defintion
Bodily injury includes bodily harm, sickness or disease, including required care, loss of services, and death that results from the bodily injury.
Additional Converges in HO
Claims expense, First aid to others, Damage to the property of others, Loss assessment coverage
HO Conditions
Conditions The conditions found in the homeowners policy forms are divided into 3 sections: Property conditions; Liability conditions; and Conditions that apply to both property and liability. You may be familiar with some of these conditions. The homeowners policy separates the conditions of the insured and insurer by section. The conditions that apply to Section I - Property are listed below. Because many of these conditions were present in the dwelling property policy and property/casualty basics chapters, only differences or additions will be described here
Coverage C: Personal Property HO
Coverage C was optional in the dwelling policy, but is now a mandatory coverage in all homeowners forms. The HO-2, HO-3, HO-5 and HO-8 will automatically include a limit of insurance equal to 50% of the Coverage A limit. This limit may be increased or decreased, but not below 40% for 1- and 2-family residences. In the HO-4 and HO-6 policy forms, the amount of insurance is selected by the insured, with coverage minimums varying by state.
Important differences between HO and DP property policy forms are noted below:
Covered property — coverage in the HO policies is expanded to anywhere in the world. The DP policy is primarily used for personal property on the described location. Limit for property at other residences — similar to the worldwide property coverage offered in the DP policies, but the sublimit only applies to other owned residences. Special limits of liability — types of property and sublimit amounts are similar to the Broad Theft Endorsement for DP forms; however, in HO forms, it is important to pay particular attention to the categories that are only limited by the peril of theft. Property not covered — limitations are added to the HO policy for property of roomers, boarders and tenants.
Damage types for HO
Direct and Indirect
Exclusions HO
Exclusions The exclusion section of the homeowners policy contains both exclusions specific to Coverage E and Coverage F, as well as exclusions that apply to both coverages. Exclusions that apply to both Coverages E and F are as follows: Motor Vehicle Liability — Coverage E and F do not apply to motor vehicle liability that arises from vehicles registered for public roads, unregistered motor vehicles that should have been registered at the place of occurrence, motor vehicles used in a race, competition, rented to others, used to carry cargo or persons for a fee or used in a business unless it is a motorized golf cart. The exclusion further clarifies coverage by stating that if the above situations do not apply, the motor vehicle is still not covered unless it meets the following conditions: Is in dead storage on an insured location; Used solely to service the residence premise; Used to assist the handicapped if it is designed to do so and parked at the insured location; Designed for use off public roads and not owned by the insured or owned by the insured but at the time of the occurrence the vehicle is on a premise that meets certain criteria in the insured location definition; or A motorized golf cart meeting certain speed criteria, not altered from factory specifications and used for golf and leisure activities at a golfing facility and in a private residential community where golf carts can legally travel.
Fire department service charge Additional Coverage: HO
Fire department service charge will pay up to $500 for liability assumed by agreement for fire department charges to protect insured property. The deductible does not apply, and the limit is an additional amount of insurance.
H0-2 ( broad form ) Does not cover what named perils
HO-2 (broad form) provides protection for losses from named perils. There are some noticeable limitations that should be pointed out to a client. The following are not covered: The inside of a building for damage by rain, snow, sleet, sand, or dust unless wind or hail damage first creates the opening; The inside of a building for loss by a falling object unless the falling object first damages the roof or an outside wall; Fences, driveways, and walks for damage from a vehicle owned or operated by a resident; or Damage from water or steam if dwelling is vacant for a period of more than 60 days.
death HO
If a named insured or spouse dies, the deceased's legal representative will be considered an insured under the policy, but only in regards to the property of the deceased covered at the time of death. The definition of an insured is broadened to include an insured who is a member of the deceased's household but only while residing at the residence premise, and to a person in the care of the insured's property but only until appointment of a legal representative.
Liberalization clause — ho
If the insurer adopts any changes that broaden coverage in the policy, those changes will automatically apply to the policy at no additional premium as of the date the insurer implements the change in the insured's state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the declarations.
Mortgage Holders Clause HO
If the insurer denies a claim, the denial will not apply to the mortgagee if the mortgagee has notified the insurer of any change in ownership or occupancy, pays any premiums due, and submits a signed proof of loss within 60 days. In addition, if the insurer decides to cancel or nonrenew coverage, it will provide the mortgage holder with 10 days advance written notice.
Insured duties after loss HO
Insured duties after a loss — If a loss occurs, the insured is required to do the following: Provide the insurer or an agent with prompt notice of the loss; Notify the police if a loss is caused by theft; Notify the credit card or fund transfer card company if the loss is covered under the credit card and fund transfer card coverage; Protect the property from further damage, make reasonable and necessary repairs, and keep records of any repair expenses; Cooperate with the insurer in the investigation of a claim; Allow the insurer to inspect the property as often as reasonably necessary; If requested, submit to an examination under oath; and Within 60 days of the insurer's request, send a signed, sworn proof of loss, which must include the time and events leading to the loss, an inventory, any changes in title or occupancy, receipts, bills, other insurance on the property, interests of all insureds, and estimates for repair.
Insured HO Definition
Insured — The policy defines an insured as any of the following: The named insured; Relatives of the named insured who reside with the named insured; Nonrelative residents in the care of the named insured or resident relatives under age 21; Full-time students under the age of 24 who are relatives of the named insured and who were residents prior to attending school (if the full-time student is a nonrelative, the coverage is provided only until the age of 21); and In addition, for Section II - Liability, any person legally responsible for the insured's animals, watercraft, or certain types of motorized vehicles.
What HO Coverage names are indirect
Los of use
Personal Liability (Coverage E) HO
Personal Liability (Coverage E) will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury (BI) or property damage (PD) caused by an occurrence to which the coverage applies. This coverage will do the following: Pay up to the policy's limit of liability for the damages for which an insured is legally liable. Damages include prejudgment interest awarded against an insured. Provide a defense at the insurer's expense by counsel of the insurer's choice, even if the suit is groundless, false, or fraudulent. The insurer may investigate and settle any claim or suit that the insurer decides is appropriate. The insurer's duty to settle and defend ends when the policy's limit of liability for the occurrence has been exhausted by payment of a judgment or settlement. Under Coverage E, a $100,000 basic limit of liability is included. However, the insured may purchase higher limits for an additional premium.
Replacement cost HO Policy
The HO-2, HO-3, and HO-5 homeowners forms provide building coverage on a replacement cost basis if the building is insured for 80% or more of its replacement cost. The modified form HO-8 provides coverage on an actual cash value basis.
What use is ho8 intended for?
The HO-8 (modified coverage form) is a unique homeowners form. It is intended for use when replacement cost coverage is not practical. When the market value of the structure is considerably lower than the replacement cost, such as some older homes, this form may be useful. Listed below are some of the differences that are applicable to this form:
How is homeowners policy different from property policy
The homeowners and dwelling property forms have many similarities, but the homeowners form includes coverage for personal property of the insured and personal liability protection.
homeowners' insurance policy
The homeowners policy is a comprehensive insurance form used to insure residential risks.
Assignment HO
The insured may not assign the policy to any other person without the written consent of the insurer.
Subrogation —
The insured may waive all rights of recovery against any other person; however, that must be done in writing and prior to a loss. If the rights are not waived, the insurer may require an assignment of rights of recovery for a loss to the extent that payment is made by the insurer. If an assignment is sought, an insured must sign and deliver all related papers and cooperate with the insurer. This condition does not apply to additional coverage damage to property of others, and Coverage F - Medical Payments.
Residence premises means Ho Defintion
The one family dwelling where the insured resides; The 2-, 3- or 4-family dwelling where the insured resides in at least one of the family units; or That part of any other building where the insured resides, and which is shown as the residence premises in the Declarations. A residence premises also includes other structures and grounds at that location.
Claims expense HO
The policy will pay expenses incurred and costs taxed against the insured in any suit the insurer defends, premiums on bonds required in a suit, reasonable expenses incurred by the insured including up to $250 per day for loss of income, and interest on the entire judgment that accrues after judgment has been entered and before the insurer pays it.
First aid to others HO
The policy will pay expenses the insured incurs to render first aid for bodily injury to third parties (note, however, that the insurer will not pay for first aid to an insured).
Loss assessment coverage HO
The policy will pay up to $1,000 per occurrence for the insured's share of loss assessment charged against them as owner or tenant of the residence premises, during the policy period, by a corporation or association of property owners.
What does ho8 cover
Theft coverage — There is also a $1,000 basic limit that applies to theft losses, and no coverage for theft of personal property off premise. Worldwide coverage — Coverage for personal property away from the premises is limited to the larger of 10% of the personal property limit or $1,000. Debris removal — This is not considered an additional amount of insurance and is included in the total policy limit. Trees, plants or shrubs — The maximum limit for any one tree, plant or shrub is only $250. Property of guests or residence employees — Property may be covered only while on the insured premises. Coverages A and B are provided on a functional replacement cost basis. Glass or safety glazing material losses are limited to $100.
Expected or Intended injury HO
bodily injury or property damage which is expected or intended by the insured even if it is of a different kind or degree than initially expected, or is sustained by a different person, entity, or property than initially expected or intended.
Where does HO-6 have other structures included
in section A
Residence employee Ho defintion
includes employees of the insured whose duties are related to the maintenance or use of the home, including doing similar duties elsewhere
Property removed coverage Additional Coverage: HO
is provided for any cause of loss for up to 30 days while covered property is being removed because of endangerment by covered peril.
Property damage HO Defintion
means physical injury, destruction or loss of use of tangible property.
Reasonable repairs coverage Additional Coverage: HO
provided to cover the expenses incurred by the insured to make reasonable repairs to protect property from further damage following loss by a covered peril.
Glass or safety glazing material Additional Coverage: HO
will pay for breakage of glass or safety glazing material which is part of a covered building, storm door or storm window. Coverage is provided for the same property if the loss is due to earth movement. Covered property is also protected from fragments or splinters of broken glass or safety glazing material. No coverage is provided if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. This limitation does not apply to loss due to earth movement.
(except in HO-4) Landlord's furnishings exception in ho additional coverage HO
will pay up to $2,500 for an insured's appliances, carpeting, and other household furnishings in each apartment on the residence premises regularly rented or held for rental to others. Covered causes of loss are limited to Coverage C perils, excluding theft. This is not an additional amount of insurance
(in HO-4 only)*. ho additional only in h04 HO
. Building additions and alterations — If the insured makes or acquires improvements to the residence premise made at his or her expense, the policy will provide an additional limit of insurance equal to 10% of Coverage C.
Loss payment HO
All losses will be paid within 60 days of receiving the proof of loss or after one of the following: An agreement has been reached as to the amount of loss; There is a final judgment; or There is a filing of an appraisal award with the insurer.
What does HO-4 Completely not cover; has none of
Dwelling and other structures
Ho Coverage Names
Dwelling, other structures, personal property, laws of use.
H06 Form what does it cover in loss of use?
Under the HO-6 form, Coverage D (Loss of Use) is the total limit of liability for the coverages in: Additional living expenses; Fair rental value; and Civil authority prohibits use. The HO-6 coverage form does not cover loss or expense due to cancellation of a lease or agreement.
HO liability covers
Unlike the dwelling policy, liability coverage is included in all of the homeowners policy forms. The liability section of all homeowners policies includes 2 liability coverages: Coverage E - Personal Liability; and Coverage F - Medical Payments to Others.
Credit card, electronic funds transfer card or access device, forgery and counterfeit money Additional Coverage: HO
will pay up to $500 to cover the legal obligation of an insured to pay because of the theft or unauthorized use of a credit card, electronic funds transfer card, loss caused by forgery of a check, or loss through acceptance of counterfeit money that duplicates U.S. or Canadian currency. No deductible applies, and the limit is considered additional insurance.
Volcanic eruption period HO
— All volcanic eruptions that occur within a 72-hour period will be considered one event.
Other insurance and service agreement HO
— If other insurance applies to the same loss, the insurer is liable only for the portion of the loss that the limit of insurance bears to the total amount of all insurance on the property (pro rata or proportionate share). If a service agreement is in place for covered property (for example, a home warranty), the policy will pay on an excess basis.
Loss payable clause
— If the Declarations shows a loss payee for certain listed insured personal property, the loss payee will be considered an insured under the policy in regards to the applicable covered property. If the policy is cancelled or not renewed, the loss payee must be notified in writing. Other conditions that have already been explained are the following: Insurable interest and limits of liability; Pair or set clause; Suit against the insurer; Insurer option to repair or replace; Nuclear hazard clause; Recovered property; Policy period; and Concealment or fraud. The following conditions apply to both property and liability coverages:
Homeowners policies may be used for the following types of properties or in the following situations:
1- to 4-family owner-occupied residences; No more than 2 families or 2 roomers or boarders per unit; Various ownership types to include installments sale contracts, life estates, dwellings under construction, townhomes, and duplexes; Insuring a tenant of nonowned dwelling (renter's form); A residential condominium or cooperative unit (under a condominium form); and Seasonal dwellings and secondary residences
What are the forms types for H0 Policy
Broad Form HO 00 02 or HO-2 Named Peril 1-4 Unit Owner Occupied Special Form HO 00 03 or HO-3 Open Peril and Named Peril 1-4 Unit Owner Occupied Renters or Tenants Form HO 00 04 or HO-4 Named Peril Occupied by Tenant Comprehensive Form HO 00 05 or HO-5 Open Peril 1-4 Unit Owner Occupied Condominium Form HO 00 06 or HO-6 Named Peril Condominium Unit Owner Occupied Modified Form HO 00 08 or HO-8 Named Peril1-4 Unit Owner Occupied, Historic or Older Home
Coverage F - Medical Payments to Others HO
Coverage F - Medical Payments to Others Medical Payments to Others (Coverage F) will pay for necessary medical expenses incurred within 3 years (36 months) of an accident causing bodily injury. Necessary medical expenses include medical, surgical, x-ray, dental, ambulance and funeral services. Coverage applies if a person is injured on the residence premise with the insured's permission to be there (such as guests of the insured), or if a person is injured by an insured off the residence premise, and the injury: Arises from the residence premise or ways adjoining the premise; Is caused by the activities of an insured; Is caused by a residence employee of an insured during the course of their employment; or Is caused by an animal owned by or in the care of the insured. This coverage does NOT apply to the insured or to regular residents of the insured's household, except residence employees.
What properties is H04 Contents board form used for
HO-4 (contents broad form), also referred to as tenant broad form, insures personal property for broad perils. Coverage may not be issued to an owner-occupant. The HO-4 form may be written for a tenant who resides in a rented dwelling, apartment, or mobile home, but does not provide coverage on the dwelling itself.
Loss settlement HO
Loss settlement — Covered property losses will be settled as follows for the HO-2, HO-3, HO-4, and HO-5 policy forms: Actual cash value (ACV): Personal property; Awnings, carpeting, household appliances, outdoor antennas and equipment; Structures that are not buildings; Gravemarkers and mausoleums; or Buildings or other structures (if applicable) that are at the time of loss are not insured to 80% of replacement value. The insurer will have the option of paying the greater of ACV or application of the coinsurance formula. If the insured decides to not make a claim on a replacement cost basis (for example, the insured decides not to rebuild), the insured may notify the insurer within 180 days after the date of loss.
Ordinance or law Additional Coverage: HO
Ordinance or law allows insureds to use up to 10% of the limit of liability that applies to Coverage A (or the limit for buildings, additions and alterations in the HO-4) for the increased cost incurred because of enforcement of any ordinance or law that requires one of the following: The construction, demolition, or renovation of part of a covered building damaged by a peril insured against; or The demolition and reconstruction of the undamaged part of a covered building if it must be demolished because of damage to another part of the covered building by a peril insured against. Ordinance or law does not cover: The loss in value to any covered building or other structure because of the requirements of any ordinance or law (for example, although the Americans with Disabilities Act (ADA) sets specific requirements for minimum clear floor space dimensions in restrooms, ordinance or law coverage will exclude costs necessary for making the restroom compliant with ADA); or The costs to comply with any ordinance or law that required any insured to test for, clean up, or otherwise respond to pollutants on any covered building.
Damage to the property of others HO
The policy will pay up to $1,000 per occurrence on a replacement cost basis for damage the insured causes to property of others. This coverage is not applicable to the extent a loss is covered in Section I, for intentional damage, unless done by an insured under the age of 13 to property owned by an insured or resident of the household, to property owned by or rented to a tenant of the insured, or arising out of a business of the insured.— The policy will pay up to $1,000 per occurrence on a replacement cost basis for damage the insured causes to property of others. This coverage is not applicable to the extent a loss is covered in Section I, for intentional damage, unless done by an insured under the age of 13 to property owned by an insured or resident of the household, to property owned by or rented to a tenant of the insured, or arising out of a business of the insured.
Trees, shrubs, and other plants Additional Coverage: HO
Trees, shrubs, and other plants are covered if loss or damage is caused by fire, lightning, explosion, riot or civil commotion, aircraft, vehicle not owned or operated by a resident of the residence premise, vandalism or malicious mischief, or theft. This is an additional amount of insurance and is limited to a maximum of $500 per tree, shrub, or plant, and a maximum per loss of 5% of the amount of coverage on the dwelling. In forms HO-4 and HO-6, the maximum per loss is 10% of the Coverage C limit.
How is homeowners different from dwelling policy
Unlike the dwelling property coverage form, use of a homeowners form is first determined by the type of residential exposure or use
collapse Additional Coverage: HO
applies to property covered under Coverages A and B with respect to this additional coverage. This additional coverage does not increase the limit of liability. Collapse means the abrupt falling down or caving in of a building or any part of a building, with the result that the building or part of the building cannot be occupied for its current intended purpose. A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse. The policy insures for direct physical loss to covered property involving collapse of a building or any part of a building if the collapse was caused by one or more of the following: The perils insured against; Decay that is hidden from view, unless the presence of such decay is known to an insured prior to the collapse; Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an insured prior to the collapse; Weight of contents, equipment, animals, or people; Weight of rain which collects on a roof; or Use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the work. Loss to awnings, fences, patios, decks, pavement, swimming pools, underground pipes, flues, drains, cesspool, septic tank, foundation, or retaining walls is not included under the definition of collapse, unless the loss is a direct result of the collapse of a building or any part of a building.
What HO Coverage names are direct
dwelling, other structures, personal property
Cancellation and Nonrenewal HO
— The insured may cancel the policy at any time by returning the policy to the insurer or by providing the insurer with written notice. If the insurer cancels coverage, it must provide the insured with a 10-day advanced written notice for cancellation due to nonpayment of premium or if the policy has been in force for no more than 60 days. For all other cancellations or for nonrenewal, the insurer must provide the insured with at least a 30-day advanced written notice. The insurer can only cancel a policy after it has been in force for 60 days for 2 reasons: Material misrepresentation, which would have prevented the insurer from issuing the policy; or Substantial change in the risk since the policy was issued.
Requirements to be considered a home in HO Policy
1. Homeowners policies are designed to cover dwellings used primarily as private homes. Forms HO-2, HO-3, and HO-5 may be written only for the owner-occupant of a dwelling used exclusively for private residential purposes and not as a vacation home. (The owner must occupy dwelling.) However, the homeowner rules permit incidental office or professional occupancy (such as a beauty shop or a private school), as long as there are no retail sales or more than two people working at any one time. The dwelling may not contain more than one additional family, nor more than 2 roomers or boarders.
Business homeowners policy requirements to have
Business occupancies may impact eligibility under the HO program. Business occupancies can be accommodated as long as they are incidental and are conducted by the insured on the dwelling premise. Permissible incidental occupancies include offices, schools or studios.
Exclusions to Homeowners HO
Exclusions The exclusions in the homeowners forms are similar to the dwelling property form. The property section has a list of general exclusions, and then forms HO-3 and HO-5 will have additional exclusions for any open peril or special form coverage. General property exclusions in HO policies are as follows: Ordinance or law; Earth movement; Water damage; Power failure; Neglect; War; Nuclear hazard; Intentional loss; and Government action. The HO-3 form will also have these additional exclusions: Freezing of plumbing, heating, air conditioning or sprinkler system unless the heat is maintained or the water is shut off and the systems are drained. However, if the building is protected by an automatic fire protective sprinkler system, the insured must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply; Freezing, thawing, pressure or weight of water or ice whether wind driven or not applies to fences, pavement, patios, swimming pools, footings and foundations, retaining walls, piers, wharfs or docks; Theft in or to a dwelling under construction; Damage by wind, hail, ice, snow or sleet to antennas, masts, towers, lawns, trees, shrubs and plants; Vandalism and malicious mischief if the dwelling has been vacant for more than 60 consecutive days prior to the loss; Mold, fungus or wet rot unless the loss is hidden from view and caused by the accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, sprinkler system, storm drain or water, steam or sewer pipe off the residence premise; Constant or repeated seepage or leakage of water or steam over weeks, months or years; Wear and tear, mechanical breakdown, smog, rust, mold, wet or dry rot; Smoke from agricultural smudging or industrial operations; Discharge, dispersal, seepage, migration, release or escape of pollutants unless caused by a Coverage C peril (broad form peril); Settling, shrinking, bulging or expansion to include cracking that results to pavement, patios, footings, foundations, walls, floors, roofs or ceilings; Damage done by birds, vermin, rodents, insects or animals owned by the insured; Weather conditions to the extent they contribute to an excluded cause of loss Acts, decisions, or the failure to act; or Faulty planning, design or materials (applies only to Coverage A and B). The HO-5 form will have all of the same exclusions as HO-3, and some additional exclusions for Coverage C because coverage is provided on an open peril basis: Breakage of eyeglasses, glassware, statues, bric-a-brac, porcelains and similar fragile articles unless breakage occurs as a result of named perils listed in the HO-5 exclusion section; Dampness, extreme temperature changes unless direct loss is caused by rain, snow, sleet or hail; Refinishing, renovating or repairing property other than watches, jewelry and furs; Collision (other than with a land vehicle), sinking, swamping or stranding of watercraft to include trailers, furnishings, equipment and out board engines; Governmental seizure, confiscation or destruction; and Acts or decisions, or the failure to act or decide of any person, group, organization or governmental body.
HO3 Special form exclusions are?
HO-3 (special form) exclusions to the dwelling or other structures are as follows: All property, losses, and perils not covered because of limitations of the insuring agreement and the general exclusions; Damage caused by freezing while the dwelling is vacant, unoccupied, or being constructed unless the insured takes reasonable care to maintain heat in the premises or to shut off and drain the water supply; Theft in or to a dwelling or structure under construction; Vandalism and malicious mischief if the dwelling has been vacant for a certain period of time (more than 60 consecutive days in most states); Gradual, preventable, or expected losses such as wear and tear, latent defect, contamination, bulging, or expansion of foundations, pavements, walls, or floors; Faulty, inadequate, or defective planning, zoning, surveying, design, etc.; Losses caused by weather conditions to the extent that they contribute to causes found in the general exclusions (i.e., flood, power failure); and Acts, decisions, or the failure to act.
Insured Location HO
Insured location is defined as any of the following: The residence premises; Part of other premises used by the named insured as a residence, and described in the Declarations, or newly acquired during the policy period; A premises not owned by the insured, but where the insured is living temporarily (a motel room); Vacant land owned or rented by the insured, excluding farmland; Land owned or rented by the insured where a residential dwelling (1- to 4-family) is being constructed; Individual or family cemetery plots or burial vaults of the insured; and Any part of premises occasionally rented to an insured, except for business purposes (e.g., an insured rents a hall for a daughter's wedding reception).
Other exclusions HO
Other exclusions that apply to both coverages: Aircraft liability; Hovercraft liability; Professional Services; Insured premise which is not an insured location; War; Communicable disease; Sexual molestation, corporal punishment or physical or mental abuse; and Controlled substances. The following exclusions apply only to Coverage E - Personal Liability: Damage to property owned by the insured; Damage to property of others in the care, custody or control of the insured (damage caused by fire, smoke or explosion is covered); Bodily injury to any person eligible for workers compensation or similar benefits; Bodily injury to the named insured or any relative or minor residing in the household; Liability for any assessment charged against the insured as a member of an association, corporation or community of property owners; Contractual liability (excluding contracts related to the ownership, maintenance or use of the insured premises); and Bodily injury or property damage in which an insured is also an insured under a nuclear energy policy. The following exclusions apply only to Coverage F - Medical Payments: Bodily injury resulting from any nuclear hazard; Bodily injury to a residence employee if it occurs off an insured location and does not arise in the course of employment; Bodily injury to anyone, other than a resident employee, who regularly resides in any part of an insured location; and Bodily injury to any person eligible to receive benefits under workers compensation or another similar law.
Coverage C personal property Covers HO
PROPERTY COVERED: Personal property owned or used by the insured while it is anywhere in the world. At the discretion of the named insured, property of others, property of guests or residence employees may also be covered while on the residence premise. Residence employees may also have their belongings covered while in any residence an insured is occupying; Property of roomers and boarders related to an insured; Hobby aircraft and parts not used or designed to carry people; Motor vehicles and other conveyances but only while used to service the premise or designed to assist the handicapped; Blank storage media and prepackaged computer software. PROPERTY NOT COVERED: Any items that are separately described and insured regardless of the limit of insurance; Animals, birds and fish; Aircraft and parts whether attached or not, other than hobby aircraft noted above; Hovercraft and parts; Motor vehicles and other motorized land conveyances, other than noted above. This includes electronic apparatus powered solely by the vehicle. Also included are parts and accessories to the vehicle and electronic equipment but only while in or upon the vehicle; Business data contained in books of accounts, paper records or in computer equipment; Property of roomers, boarders and tenants (when not a relative of the insured); Property in an apartment regularly rented or held for rental by an insured; Property rented or held for rental by the insured to others while off the residence premise; Credit cards, debit cards or any device used to deposit, withdraw or transfer funds; Water or steam (for example, a broken water pipe significantly increases an insured's water bill).
Coverage A dwelling HO
ROPERTY COVERED: Dwelling on the described premises listed in the declarations page and all attached structures; Any materials or supplies located on or next to the residence premise used to construct, alter, or repair the dwelling or other structures on the premise; HO-6 policies also include alterations, appliances, fixtures that are part of the building, items of real property, property which is the insured's responsibility to insure as part of an agreement and structures owned solely by the insured other than the residence premise. PROPERTY NOT COVERED: Land, including land on which the residence premise or other real property is located; HO-6 also includes items that would normally be listed as not covered in Coverage B, such as other structures held for rental to a person not a tenant of the dwelling unless used as a private garage, structures from which business is conducted and structures used to store business property unless the property is owned by the insured or a tenant of the dwelling.
Replacement Cost HO
Replacement cost: Buildings and other structures if covered for at least 80% of their replacement cost. The insurer has the option of paying the least of the limit of liability, replacement with like kind and quality, or the amount necessary to repair or replace the damaged building; If the building is rebuilt at another premise, the insurer is obligated to pay no more than the cost associated with building at the original premise; or The insurer will pay no more than ACV until actual repairs or replacement is complete. If the cost to repair or replace damaged property is less than 5% of the total amount of insurance, or less than $2,500, the insurer will settle the loss without the requirement that the property actually be repaired or replaced.
Coverage C personal property Ho Limits
Special limits of liability in HO policies are as follows: $200 for money, bank notes, bullion, gold, silver (excluding goldware and silverware), platinum, coins, and other metals; $1,500 for securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, passports, tickets, and stamps; $1,500 for watercraft and their trailers, furnishings, equipment, and outboard motors; $1,500 for other trailers; $1,500 for theft of jewelry, watches, furs, precious, and semiprecious stones; $2,500 for theft of firearms; $2,500 for theft of silverware and silver-plated ware, goldware and gold-plated ware, and pewterware, including flatware, hollowware, tea sets, trays, and trophies; $2,500 for property on the premises used for business purposes; $1,500 for property away from the premises used for business purposes; $1,500 for loss of portable electronic equipment that produces, receives, or transmits audio, visual, or data signals while in a motor vehicle; and $250 for loss of antennas, wires, or any media used with the electronic equipment in a motor vehicle. Limit of property at other residences: Personal property usually located at another residence of the insured is covered for the larger of $1,000 or 10% of the Coverage C limit. This limitation does not apply if property is moved because the residence premise is being repaired, renovated or rebuilt. When property is moved to a newly acquired residence for 30 days, the limit shown on the declarations will apply on a proportional basis to each residence. Coverage will not extend beyond the expiration date of the policy.
What does H06 Cover?
The HO-6 (condominium unit owners) also expands coverage to include parts of the building, such as alterations and appliances that the insured is required to insure because of the condominium association agreement. The HO-6 unit-owners form is designed for the owner-occupant of a condominium. Under Coverage A (Dwelling), the HO-6 policy insures the following: The alterations, appliances, fixtures and improvements that are a part of the building contained within the residence premises; Items of real property that pertain exclusively to the residence premises; Property that is the insured's insurance responsibility under a corporation or association of property owners agreement; and Structures owned solely by the insured, other than the residence premises, at the location of the residence premises. The HO-6 under Coverage A does not cover any of the following: Land, including land on which the residence premises, real property, or structures are located; Structures rented or held for rental to any person that is not a tenant of the dwelling, unless used solely as a private garage; Structures from which any business is conducted; or Structures used to store business property. However, it does cover a structure that contains business property solely owned by an insured or a tenant of the dwelling, provided that the business property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure.
Perils Insured Against HO
The broad form perils insured against for damage to property in the homeowners HO-2, HO-4 and HO-6 include the following: Fire or lightning; Windstorm or hail; Explosion; Riot or civil commotion; Aircraft; Vehicles; Smoke; Vandalism or malicious mischief; Theft; Falling objects; Weight of ice, snow or sleet; Accidental discharge or overflow or water or steam; Sudden and accidental tearing apart, cracking, burning, or bulging; Freezing; Electrical damage; and Volcanic action. These perils were covered in depth in the dwelling section, and have the same characteristics in the homeowners forms. Broad form perils will apply to all applicable coverages (A, B, C, D) in the forms noted above. These are also the perils insured against for Coverage C in HO-3, HO-4, and HO-6. The HO-3 is open or special form coverage on Coverages A and B. Damage to the dwelling and other structures is covered unless it is excluded. The major exclusions are also listed in the dwelling property chapter. Coverage C losses in the HO-3 are covered for broad form perils. The HO-5 (Comprehensive) form is unique among the homeowners forms in that the entire policy is open peril or special form. Therefore, Coverage A, B, C and resulting indirect losses in coverage D are covered unless excluded.
What does h06 insure
Under Coverage C (Personal Property), HO-6 insures the following: Personal property owned or used by an insured while it is anywhere in the world; After a loss and at the insured's request, it will cover personal property owned by:Others while the property is on the part of the residence premises occupied by an insured; orA guest or a residence employee, while the property is in any residence occupied by an insured
Watercraft Liability HO
Watercraft Liability — liability arising from the use of watercraft is not covered in the following instances: While the watercraft is operated in a race or speed contest. Coverage is granted for a sailboat and if a vessel is used in a predicted log race (accuracy of arrival is more important than speed of arrival); Rented to others; Used to carry persons or cargo for a fee; or Used for any business purposes. However, this exclusion does not apply to the watercraft that meets the following criteria: Is stored; Is a sailing vessel that is under 26 feet in overall length, or 26 feet or more if not owned by or rented to an insured; Is a watercraft that is powered by an inboard-outboard engine including those that power a water jet pump, and if it is 50 horsepower (hp) or less but only when borrowed or rented by an insured. If the watercraft is over 50 hp, coverage applies only if borrowed by the insured. If one or more outboard engines or motors are 25 hp or less, but if more than 25 hp, coverage applies if borrowed or rented by the insured. Coverage for over 25 hp will also apply when newly acquired by the insured within certain timeframes and if the insurer is notified.
Coverage B other structures Covered HO
a basic amount of insurance equal to 10% of the Coverage A limit is included for other structures, but a policy may be written with higher limits PROPERTY COVERED: Other structures on the residence premise that are separated from the dwelling by a clear space, or connected only by a fence, utility line, or similar connection; Other structures rented to anyone, other than a tenant of the dwelling, but only when used as a private garage; Structures used to store business property of the insured or tenant of the dwelling, as long as gaseous or liquid fuel is stored in a fuel tank of a vehicle or craft stored in the structure. PROPERTY NOT COVERED: Land including land where the other structures are located; Structures rented or held for rental to anyone other than a tenant of the dwelling when not used as a private garage; Other structures that are used to conduct any business.
Business liability HO
coverage does not apply to business exposures of an insured. Coverage is granted for rental of an insured location on an occasional basis, but only if used as a residence. The policy also provides coverage for partial rental of the residence, but only if the portion rented is intended to house no more than 2 roomers or boarders, or certain business exposures such as office, school, studio or private garage. Self-employed insureds under the age of 21 are covered for a full-time or part-time business with no employees
What does H0-5 Comprehensive form cover?
covers both the dwelling and other structures on an open peril basis. It also covers personal property on an open peril basis, with the exception of landlord furnishings in an apartment that is rented (or held for rental to others). Landlord furnishing is limited to $2,500 limit and provided on a named peril basis. Another expansion of coverage is found in the definition of theft. In the HO-5, theft includes misplacing or losing of insured property, also known as mysterious disappearance.
Loss assessment Additional Coverage: HO
will pay up to $1,000 for the insured's share of a loss assessment charged during the policy period against the insured as an owner or tenant of the residence premises by a corporation or association of property owners. The assessment must be made as a result of direct loss to property that is owned by all members collectively, as long as it is of the type that would be covered by the insured's policy if owned by the named insured. Damage to association property must be caused by a peril insured against, and does not include earthquake or land shock waves after a volcanic eruption.
Grave Markers Additional Coverage: HO
will pay up to $5,000 for grave markers, including mausoleums, for loss caused by a peril insured against, on or off residence premises. This coverage does not increase the limits of liability that apply to the damaged covered property.
