5 .

Homeowners Insurance

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Homeowners Policy
Basic Homeowners policy provides coverage for an individuals or familys common property and liability exposures, with certain conditions and exclusions attached, in return for the convenience of single premium paid.
ISO 2000 Homeowners (HO) insurance program offers six policies
HO-2
HO-3 HO-4

Broad Form (Named Perils Coverage Form Owner Occupation - DOP)

Special Form (Open Perils Owner Occupation Higher Coverage - DO) Contents Broad Form (Tenants personal Property on Named Peril basis)

HO-5 Comprehensive Form (Open Perils Owner Occupation Higher Coverage - DOP)

HO-6

Unit-Owners Form (Named Perils Personal Property)

HO-8 Modified Coverage form (Limited Named Perils Basis DOP Valued under Functions Replacement cost basis)

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Homeowners Insurance Policy Rating

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Homeowners Policy Rating Factors

Base Premium Factors

o Location

o Public Protection Class (Ranking of Fire Protection)

o Construction + BCEGS (Frame and Masonry) o Coverage Amount o Policy Form

Base Premium Adjustments

o Endorsements

o Unusual Construction Type

o Deductibles

Final Adjustments
o Claim History o Credit Score or Insurance Score o Package Policy credits

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HO-3
Homeowners Special Form Policy
For Owner Occupants

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HO-3 Structure
Declarations Agreement Definitions

Section I Property
o Property Coverages

o Perils Insured against o Exclusions o Conditions

Section II - Liability
o Liability Coverages o Exclusions

o Additional Coverages
o Conditions

Section I and II Conditions

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HO-3 Declarations

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HO-3

Policy holder

Residence Address
Scheduled Coverages and Limits Premium Section-I Deductible

Deductibles apply to all perils

$250,$500 Catastrophe prone area insurers use higher deductible for specific perils Dollar amount or Percentage

Policy Period Forms and endorsements Mortgage Holder

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HO-3 Agreement & Definitions

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HO-3
Agreement Definitions
Helps both the insured and insurer Contains words and phrases that are later referred in the policy You and Your, We, us, our, Named Insured and Other Insureds

Residence Premises and Insured Location

Deductible

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Residence Premises and Insured Location

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Residence Premises and Insured Location

Residence

Premises

o 1-to-4 Family Dwelling o Part of any Building where the named insured resides o Other structures and ground at the Residence Location

Insured Location
o

Residence Premises

o Temporary residence o Newly acquired residence o Vacant Land other than farm land, owned by or rented to insured

o An insured land where 1-4 family residence is being constructed

o Individual or family cemetery plots o Any part of a premises occasionally rented to an insured for nonbusiness purposes
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Homeowners HO-3 Property Coverages

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HO-3 Section I Property Coverages

Coverage A - Dwelling Coverage B - Other Structures
Coverage C - Personal Property Coverage D - Loss of Use Additional Coverages

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Homeowners HO-3 Property Coverages A and B

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HO-3 Section I Property Coverages A and B

Coverage A - Dwelling Coverage B - Other Structures
o Covers 10% of the Coverage A Limit for all Structures at the residence

Premises o Limit can be increased by endorsement o Exclusions

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Exclusions to Other Structures

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Coverage B Exclusions
Rented to Others
o But exclusion does not apply

When Structure is rented to family Member

When Rented as Garage

Where Business activities are performed

o But exclusion does not apply When Structure is used for volunteer activities or Daycare Services A Business with an earnings less than $2000/yr in the preceding year

Structures with Storage of Business Property

o But exclusion does not apply When Business Property is used only by insured

Other than gaseous or Liquid Fuel

Gaseous or Liquid Fuel in the tank of a vehicle is allowed

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HO-3 Section I Coverage C

Personal Property Coverage
o Covers 50% of the Coverage A Limit

o Limit can be increased by scheduling the limit in Declarations page

o 10% of Coverage C or $ 1000( whichever greater at the secondary Location. Can be increased by endorsement o Exceptions to 10% Coverage at secondary location o Special Limits of Liability or Special Sublimits

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HO-3 Section I Coverage C Personal Property Special Sub Limits

200
1500
- Money and precious metals 1500 - Securities, Documents, Records and Stamps

- water Crafts, Trailers

1500 - Theft of Jewellery and Furs 2500 - Theft of Firearms 2500 - Theft of gold ware, Silverware,Platinumware, pewter ware 500 500 - For on the residence Premises used primarily for business Purposes - For property away from the residence Premises used for business Purposes 1500 - For electronic apparatus and equipment to be operated by

Power from Motor Vehicle while in or upon vehicle

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HO-3 Section I Coverage D Loss of Use

Loss of Use Coverage

o Covers 30% of the Coverage A Limit

o Limit can be increased by scheduling the limit in Declarations page

o Additional Living Expenses

Fair Rental value Loss of use due to Civil authority

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HO-3 Section I Property Additional Coverages

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HO-3 Section I Additional Coverages

Debris Removal ( 5 % - In excess over the Coverage Limit of A,B,C)

Reasonable Repairs

Trees, shrubs, and Other Plants ( 5% of Cov A and not more than
$500 for any one tree, plant ) Fire Department Service Charge ( $ 500) Property removed Credit Card, electronic Fund transfer card or access device and

Counterfeit Money ( $ 500)

Loss Assessment( $ 1000) Collapse Breakage of Glass Landlords furnishings ( $ 2500) Ordinance or Law

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HO-3 section I Property Perils Covered against

Coverages A and B
Coverage C

Special Form
Covered on Named Perils

Coverage D and Additional Coverages Perils not listed out

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HO-3 Coverage A and B Exclusions

Section 1 Exclusions
Collapse Freezing of Plumbing, Heating, Air Conditioning or sprinkler system or a house hold appliance Theft of construction materials Vandalism Mold, Fungus or wet rot Natural Deterioration Smoke from agricultural smudging or Industrial Operations Pollutants Settling of the Dwelling Animals

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HO-3 Coverage C Named Perils

Fire or Lightning
Windstorm or Hail Explosion Riot or Civil Commotion

Aircraft
Vehicles Smoke Vandalism Theft Falling objects Weight of Ice, snow or sleet Accidental discharge of water Sudden or accidental tearing apart, cracks, burning or bulging Freezing Volcanic erruption
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HO-3 Section 1 Exclusions

Ordinance or Law
Earth Movement Water Damage Power Failure

Neglect
War Nuclear Hazard Intentional Loss Governmental Action Perils Excluded for Coverages A and B only Weather Conditions Acts or Decisions Faulty Workmanship
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HO-3 Coverages A &B Loss Settlements

Coverages A and B Loss Settlement

o Replacement Cost
o ACV o Coinsurance Case A: Limit Of Insurance is 80% or more of Replacement Cost Replacement Cost up to limit of Coverage

Case B: Limit Of Insurance is less than 80% of Replacement Cost

Greater of ACV or ( Limit of Insurance * Replacement Cost of the Loss/ 0.8 ) * Replacement Cost

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HO-3 Coverage C Loss Settlement

Coverages C Loss settlement
Loss is Settled on the lesser of ACV or Repair or Replacement Cost

Loss to a pair or Set

o Replacement Cost of the Missing Pair o Difference between the ACV of Pair and ACV of the Remaining Single Item

Appraisal
Other Insurance Other Insurance and Service agreement Law Suit against Insurer

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HO-3 Policy Loss Settlement

Insurers Option
Loss Payment Abandonment of the Property Mortgage Clause No Benefit to Bailee Nuclear Hazard Recovered Property Volcanic Eruption Period

Policy Period
Concealment/ Mis Represenation or Fraud Loss Payable Clause

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HO-3 Section I - Conditions

Insurable Interest and Limit of Liability
Your Duties after Loss
o Give Prompt Notice of the Loss

o Notify Police
o Inform Credit Card, Electronic Fund Transfer card Company o Prevent Further Damage o Cooperate with the Insurer o Prepare an inventory of Loss Items and verify loss o Sign a sworn Proof of Loss

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