Chapter 5 Homeowners Flashcards
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.
The Contents Broad Form (HO–4) and Unit-owners Form (HO–6) are written to insure the personal property and personal liability of the named insured who does not own the building in which he/she lives. The HO–4 is designed for tenants of residential units (i.e., dwellings and apartment units) and provides no coverage for buildings and other structures. The HO–6 is designed for the owners and tenants of condominium or cooperative units. Coverage is provided for the portion of the building the named insured owns (or is responsible for insuring), personal property, and personal liability.
Eligible residential dwellings are those containing one to four residential units and no more than 2 roomers or boarders per family. Dwellings under construction, and that will be the primary residence of the named insured upon completion of construction, are also eligible for coverage.
HO–2 (Broad Form)
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
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.
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.
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–5 (Comprehensive Form)
The Comprehensive Form provides the broadest coverage of any of the homeowners forms. Coverage 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.
In what way is the HO–5, Comprehensive Form different from the HO–3, Special Form?
Personal property is insured on an open perils basis
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.
An owner of a condominium unit would purchase which Homeowner form?
The HO-6 covers the personal property of the condominium unit owner as well as building coverage.
HO–8 (Modified Form)
The loss valuation method for the Modified Coverage Form is typically Actual Cash Value (ACV). However, if exact materials are not available, they may be replaced with materials that will perform the same function and have the same efficiency, even if they aren’t of like kind and quality.
The Modified Coverage Form is often used to insure older homes when the replacement and market values of the dwelling are disproportionate or if a moral / fire hazard would be created if insurance were written at 100% of replacement cost.
An example of a dwelling that would be insured under this coverage form is an old Victorian home. If the property were destroyed in a loss, the insured would not want to restore or replace it exactly as it was before the loss, or they may not be able to find the necessary materials to recreate the dwelling exactly as it was. Instead of insuring the dwelling for its replacement value of $1,200,000, the insured could insure it for a much lower amount of insurance using this form.
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
Determine which of the following coverages under each form is provided on a named perils or open perils basis
Named Perils Basis HO-2 Coverage C HO-2 Coverage B HO-2 Coverage A HO-3 Coverage C HO-4 Coverage C HO-6 Coverage A HO-6 Coverage C
Open Perils Basis HO-3 Coverage A HO-3 Coverage B HO-5 Coverage C HO-5 Coverage B HO-5 Coverage A
Match the Homeowners form to the coverage it would provide.
HO–4 (Contents Broad Form)
R is a tenant of a house, and their couch is damaged by accidental discharge of water. The insurer pays the claim on an actual cash value basis.
HO–5 (Comprehensive Form)
The insured property and some contents inside are damaged after a deer broke into the home. The insurer pays for damages to the building on a replacement cost basis and damages to personal property on an actual cash value basis.
HO–3 (Special Form)
The insured property was vandalized, and the windows and fence were damaged. The insurer pays the claim on a replacement cost basis.
HO–8 (Modified Form)
The insured property is damaged in a hailstorm. Because of the age of the home, the insurer pays for materials that will perform the same function as the original materials.
HO–2 (Broad Form)
J is teaching a family member, T, how to drive J’s car. T accidentally drives into J’s garage and fence, causing damages. The damages to the garage are covered on a replacement cost basis, but the damage to the fence would not be covered under this form.
HO–6 (Unit-Owners Form)
The insured condo is damaged by burglars. The insurer pays for the damage to the property, but it does not cover the contents that do not belong to the insured.
The named insured is the person or persons designated on the policy’s declarations page and should be the party or parties holding deed to the property being insured. In situations where real property is owned by a trust, the named insured will be the trustee(s) living in the insured dwelling.
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
Under Section II Liability Coverages, any person or organization legally responsible for covered animals or watercraft owned by an insured, unless custody of such animals or watercraft is in the course of “business” — as defined by the policy.
With respect to a “motor vehicle” to which liability coverage applies, persons using a covered vehicle on an insured location with the insured’s consent, and persons while engaged in the employment of the named insured or a resident relative.
A related, full-time student away at school and under what age is considered an insured on the Homeowner policy?
24
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
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.
Residence Premises means:
The 1-family dwelling where the named insured resides.
The 2-, 3-, or 4-family dwelling in which the named insured resides in at least one of the family units.
That part of any other building where the insured resides.
The residence premises also includes other structures and the grounds at that location, such as the 5 acres upon which the insured resides, including the barn, detached garage, and swimming pool.
Business means:
A trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis.
Any other activity engaged in for money or other compensation, EXCEPT:
Volunteer activities for which no compensation is received other than expense reimbursement.
Home 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.
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.
Section I – Property Coverages
Homeowners Coverages Section I Section II Coverage A - Dwelling Coverage E - Personal Liability Coverage B - Other Structures Coverage F - Medical Payments to Others Coverage C - Personal Property
Coverage D - Loss of Use
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.
The policy does not cover:
Land on which the dwelling is located.
Theft in, to, or from a dwelling under construction, including materials used in the construction.
Vandalism and malicious mischief including ensuing loss, if the dwelling was vacant for more than 60 consecutive days immediately before the loss.
When a limit of liability is chosen for Coverage A – 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.
Coverage A – Dwelling does not cover vandalism and malicious mischief if the dwelling has been vacant for how many days?
60 days
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.
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.
Special limits of liability apply to certain categories of personal property.
Special Limits
of Liability
Money, bank notes, bullion, coins, medals, etc. $200
Securities, deeds, evidences of debt, notes other than bank notes,
manuscripts, passports, tickets and stamps $1,500
Watercraft of all types, including their trailers, furnishings,
equipment, engines, and outboard motors. Loss resulting from
wind or hail is excluded unless in a fully enclosed building
$1,500
Trailers or semi-trailers not used with watercraft of all types $1,500
Loss by theft of jewelry, watches, furs, precious or semiprecious
stones $1,500
Loss by theft of fi rearms and related equipment, such as holsters
and ammunition. $2,500
Loss by theft of silverware, goldware, pewterware, platinumware,
tea sets, trays, trophies, and fl atware. $2,500
Property on the residence premises used primarily for business
purposes (e.g., a personal computer used by the insured in a
home-based business). The limit does not apply to a personal
computer used by the insured occasionally when bringing
work home from the offi ce, and used primarily for personal and
household purposes.$2,500
Property away from the residence premises used primarily
for business purposes. This limit doesn’t apply to electronic
apparatus. Different editions of the homeowners policy provide
different limits of insurance for this coverage.
$500
Electronic apparatus and accessories while in or on a motor
vehicle, but only if equipped to be operated by power from the
motor vehicle while still being capable of operation by other power
sources. Accessories include antennas, tapes, wires, records,
disks, etc.
$1,500
Electronic apparatus and accessories used primarily for “business”
purposes while away from the residence premises and NOT in
or upon a motor vehicle, but only if equipped to be operated by
power from the motor vehicle while still being capable of operation
by other power sources. Accessories include antennas, tapes,
wires, records, disks, etc.
$1,500
All of the following special limits of Coverage C are correct, except:
$2,500 for business property away from premises
Coverage C – Personal Property (continued)
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.
The amount of insurance provided for Coverage C is what percentage of Coverage A on a HO–3, Special Form?
50%
The Coverage C limit is 50% of Coverage A in the standard Homeowner policy, and may be increased.
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.
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.
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.
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.
Coverage D – Loss of Use/ Limits of coverage
Loss and expenses due to the cancellation of a lease or agreement are NOT covered.
Limits of Coverage – The automatic limits of insurance for Coverage D vary by the homeowners form of coverage:
30% of Coverage A for forms HO–2, HO–3, and HO–5
30% of Coverage C for form HO–4
50% of Coverage C for form HO–6
10% of Coverage A for form HO–8
Click here for a printable PDF of HO Coverages.
Match the Coverage D limit of insurance with the correct policy/policies.
30% of Coverage A
HO–2, HO–3, and HO–5
10% of Coverage A
HO–8
50% of Coverage C
HO–6
30% of Coverage C
HO–4
The automatic limit for Coverage D – Fair Rental Value is what percentage of Coverage A under an HO–3, Special Form?
30%
Identify under which coverage part of a homeowners policy the following items would be covered
Coverage A
Installed carpeting
Fireplace
Tile floors
Coverage B
Fence
Swimming Pool
Detached garage
Coverage C
Home computer
Money
Furniture
Section I – Additional Coverages
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Landlord’s Furnishings endorsement provides up to $ _______ of coverage.
2,500
This endorsement provides up to $2,500 coverage for appliances, carpeting and household furnishings in a rental apartment located in the residence premises.
Section I – Exclusions
The policy does not provide for loss caused directly or indirectly by any of the following perils, even if they are caused concurrently or over a widespread area.
Ordinance or Law
Losses resulting from the enforcement of an ordinance or law regulating the construction, repair, remodeling, renovation or demolition of a building are excluded except what is provided in the additional coverage, Ordinance or Law.
Earth Movement
Losses resulting from: earthquake, including land shock waves or tremors before and after volcanic eruptions, landslides, mudslides, mudflow, subsidence, or sinkhole, and any earth sinking, rising, or shifting. Direct loss by fire or explosion that ensues is covered. Loss by theft resulting from earth movement is also covered.
Water Damage
Water damage means flood, surface water, tidal water, overflow of a body of water, water or water-borne material that backs up through sewers or drains or that overflows from a sump pump, and water that exerts pressure on or seeps or leaks through a building, foundation, swimming pool, or other structure. Direct loss by fire, explosion, or theft resulting from water damage is covered. Water damage is excluded whether caused by human, animal, or natural forces.
Power Failure/ Section I exclusion
If the failure of power or utility services takes place off the residence premises, this exclusion applies. However, if the failure of power or utility services takes place on the residence premises and is caused by a Peril Insured Against, it doesn’t apply.
Neglect/ Section I exclusion
There is no coverage for losses if the insured fails to use all reasonable means to save and preserve covered property at and after the time of a loss.
