Home Owner's Flashcards
HO-2
Broad Form
HO-3
Special Form
HO-4
Contents Broad Form
HO-5
Comprehensive Form
HO-6
Unit-Owners Form
HO-8
Modified Coverage Form
Section I
Property Coverage
A- Dwelling and attached. Primary limit is replacement value
B- Other structures. Up to 10% of dwelling
C- Personal property. Up to 50% of dwelling
D- Loss of Use. Up to 30% of dwelling.
Section II
Liability
E- $100,000 (CSL) BI & PD
F- Medical payments to others. $1000, no fault
Eligibility HO-2, 3, 5 ,8
Owner occupied dwelling with no more than 4 residential units; named insured must live in one of the units
Eligibility HO4
Residence or apartment is rented, not owned
Eligibility HO6
Condo or cooperative unit may be rented or owned
HO-2 Broad Form Coverage
Coverage for dwelling (Coverage A), other structures (B) and personal property (C)
16 Named Perils
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
HO-3 Special Form Coverage
Coverage A & B are insured on open peril basis.
HO-3 Special Form Exclusions
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
HO-4 Contents Broad Form Coverage
Known as renter’s or tenant homeowners policy. No coverage for dwelling or other structures, only personal property under Coverage C against loss from 16 named perils. ACV basis.
HO-5 Comprehensive Form Coverage
Broadest coverage. Coverage A B & C provide insurance on open perils basis.
HO-6 Unit-Owners Form Coverage
Named perils coverage to the owner of a condo or coop unit under Coverage A & C. Coverage B does not appear in this form, if owner wishes to insure other structures, the value of other structures may be included in the Coverage A limit. Insures building and building items for which insured is responsible AND insures personal property of insured while anywhere in the world.
HO-8 Modified Form Coverage & Exclusions
Typically ACV; often used to insure older homes when replacement and market values of the dwelling are disproportionate. Victorian home. Does not cover: Falling Objects Weight of ice, sleet, or snow Accidental water or steam Accidental HVAC damage Freezing Sudden accidental damage from artificial electricity
Coverage Chart - HO-2 Broad
Named - Dwelling - RCV
Named- Personal - ACV
Coverage Chart HO-3 Special
Open - Dwelling - RCV
Named - Personal - ACV
Coverage Chart HO-4 Contents Broad
Named - Personal - ACV
Coverage Chart HO-5 Comprehensive
Open - Dwelling - RCV
Open - Personal - ACV
Coverage Chart HO-6 Unit-Owners
Named - Personal - ACV
Coverage Chart HO-8 Modified
Named - Dwelling - Repair Cost/ Market Value (whichever is less)
Named - Personal - ACV
What percent of coverage should be purchased?
80%
What are the Additional Coverages?
Debris Removal Reasonable Repairs Trees, Shrubs and Plants Fire Dept Service Charge Property Removed Credit Cards, Electronic Fund Transfer Card, Forgery, Counterfeit Money Loss Assessment Collapse Glass/Safety Glazing Landlord's Furnishings Ordinance or Law Grave Markers
Section I Exclusions
Ordinance or Law Earth Movement Water Damage Power Failure Neglect War Nuclear Hazard Intentional Loss Governmental Action
Section I - Selected Property Endorsements
Mobile Home Insurance
Other Structures on Residence Premises (Increased Limits)
Water Back Up and Sump Discharge or Overflow
Personal Property Replacement Cost Endorsement
Scheduled Personal Property Endorsement
Earthquake Endorsement
Limited Fungi, Wet or Dry Rot, or Bacteria Coverage
Permitted Incidental Occupancies
Identity Theft Expense
Section II Liability Coverage
Coverage E & F
Coverage E
Personal Liability. Covers BI and PD per occurence. Pays up to policy limit. Basic limit of $100,000. Cost of defense does not reduce limit.
Coverage F
Medical Payments to Others. Basic Limit of $1000 per occurence. No fault. Within 3 years. Off premises: actions of insured or resident employees; animals; resident employees are covered.
Home Day Care Endorsement
Endorsement extends Section I & II coverages to the home day care “business” described in the schedule provided it is conducted by an insured on the residence premises.
Endorsement typically imposes a policy year aggregate limit for the sum of personal Liability (Coverage E) and Med payments to others (Coverage F) losses.
Endorsement does not cover injury to any employee arising out of the “business” as described.
Additional HO Liability Coverages
Claims Expense
First Aid to Others
Damage to Property of Others
Loss Assessment Coverage
Section II Exclusions Categories
Apply to Section II
Apply to both Coverage E & F
Apply to just E
Apply to just F
Section II Exclusions
Motor Vehicle Liability
Aircraft Liability
Hovercraft Liability
Exclusions for E & F
Expected/Intended Injury
BI or PD in connection with business conducted
BI or PD arising from failure to render professional services
No coverage if premises isn’t an insured location
Communicable disease
Sexual molestation, Corporal Punishment, Physical or Mental Abuse
If controlled substances are involved
War or nuclear weapon discharge
Any accident with a motorboat unless it’s in storage, rented inboard boat more than 50hp, owned outboard boat more than 25hp, owned or rented sailing vessels 26ft or more in length
After Occurrence Information
Policy Number
Identity of Insured
Info about time, place, and circumstance of occurrence
Names and Addresses of claimants and witnesses
