Types of Property Policies
Terms in this set (36)
HO-2 (broad form)
covers the dwelling, other structures, and personal property on a named perils basis (Coverages A,B & C named perils only)
HO-3 (special form)
Provides the best coverage for the money. It is the most popular HO coverage form, and is all risk on the dwelling and other structures, and contents are still named peril. (Coverages A&B All Risk, Coverage C Named Perils)
HO-4 (contents broad form)
Contents Broad Form (Renters) Named Peril for Coverage C
HO-5 (Comprehensive Form)
provides open perils coverage ("all-risks coverage") on the dwelling, other structures and personal property.
HO-6 (unit owners form)
covers personal property on a named perils basis. In Florida, Cov A minimum of $5,000 of insurance is also provided on the condominium unit that covers improvements and additions. Generally, the standard Cov A limit for the HO-6 is $1,000
HO-8 (modified coverage form)
is used when insuring older homes where replacement value and market value are disproportionate or when a moral hazard would be created if insurance were written in an amount equal to 100% of a dwellings replacement value
DP-1 Basic Form
Can be written for any amount on a ACV basis. Covers basic fire, lightening and internal explosion. Other Perils must be endorsed. (ALE, EC, VMM)
DP-2 Broad Form
A named peril policy that adds several more perils. Includes all DP-1 coverage. $12,000 Minimum to qualify
DP-3 Special Form
Under this Dwelling coverage form: dwelling and other structures are covered for all direct physical damage (open peril), except for perils specifically excluded. Named perils for Coverage C. $15,000 minimum to qualify.
Personal Articles Floater
Personal Inland Marine insurance which provides all-risk coverage on nine optional classes of personal property: jewelry, furs, cameras, musical instruments, silverware, golf equipment, fine arts, stamp collections and coin collections.
National Flood Insurance Program
Only available to eligible buildings or eligible contents within eligible communities. Has both an emergency and a regular program. The regular program provides high coverage limits.
Emergency Flood Program
Community applied for admittance to the program. Studying area's flood potential and developing Flood Hazard Boundary Map. Limited coverage amounts available.
Regular Flood Program
Flood Insurance Rate Map (FIRM) published. Higher limits available if community agrees to pass ordinances lessening or eliminating future flooding.
Eligible Building (Flood)
Two or more walls and a roof. 50% above ground and located in an eligible community.
Eligible Contents (Flood)
Located in a fully enclosed building or secured to prevent floatation out of the building. Property in basement or under elevated floors excluded.
Private Flood Insurers
Provides an alternative to the NFIP. Allows private insurers to write standard coverage; preferred coverage; customized coverage and supplemental coverage.
All earthquake shocks within a 72-hour period = 1 single earthquake. Usually written on a DIC contract. DIC = difference in conditions. This type of policy excludes all coverages available in the primary policy and only covers earthquake or flood. Usually has a high deductible, for example $10,000 or 10% of the value of the property, not the value of the policy
Must be permanently placed on a foundation to be eligible for a dwelling policy and only eligible for a DP-1. An HO-4 can cover the contents in the mobile home but not the mobile home. (HO-4 Contents only) ISO developed a mobile homeowners endorsement which can attach to an HO-2 or an HO-3.
Can be Boatowners and Outboard Motor and Boat policies or a Personal Yacht Policy. Small boats must be under 30 feet and less than $25,000 losses paid ACV. Private use only. Race or speed contests are excluded, however; unofficial events are not excluded.
Several states have FAIR plans which make coverage available for insureds who have environmental hazards which would otherwise make them ineligible for coverage. Wind increases your chance of loss but is not something which is within your control. Under a FAIR plan an application for insurance may not be rejected due to environmental hazards which are beyond the control of the insured, an inspection may be required prior to accepting the application.
Windstorm (Florida Specific)
Wind only polices. Only available in defined areas of designated counties. These policies only cover the peril of windstorm and hail. These two perils are excluded on your primary policy and the Citizens' Wind (FWUA) policy fills the gap.
This is the first section of the HO policy and includes Coverage A, B, C and D.
Other Structures (detached) 10% of A
Personal Property (contents), world wide (50% of A) blanket, non-scheduled
Coverage D (Homeowners)
Loss of use over normal living costs or loss of rents (30% of A) Unlike a Dwelling policy you must choose how to use Coverage D, you can have ALE or you can have loss of rents, you can't have both.
In addition to A-D:
Debris removal & reasonable repairs - 5% of A
Breakage of Glass (safety glazing)-unless over 60 consecutive days vacant
Trees, shrubs, plants - $500 each, 5% of A max. (no wind coverage)
Fire department service charge- $500
Removal of property - 30 days
Credit card forgery, counterfeit money - $500
Loss assessment - $1000
Landlord furnishings - $2,500 (appliance, carpeting, furniture)
Building Ordinance or Law - 10% of coverage A
Building Additions and Alterations (HO-4) - 10% of C
Section II (Homeowners)
BI & PD 3rd party to others and includes coverages E and F. Liability Coverages is identical in each of the homeowners forms. It provides the same coverages contained in a standalone Comprehensive Personal Liability (CPL) policy. Section II coverages are not subject to a deductible.
Coverage E (Homeowners)
Personal liability - per occurrence coverage for claims made and suits brought against and insured because of bodily injury or property damage-includes cost of defense
Coverage F (Homeowners)
Medical payments to others - $1,000 per person pays for the necessary medical expenses incurred within 3 years from the date of an accident causing bodily injury without regard to fault.
Additional Liability Coverages
The following coverages are provided and payments are made in addition to the limit of liability appearing on the declarations: Claims Expenses (supplementary payments) up to $250 a day for actual loss of earnings; First Aid Expenses; Damage to Property of Others up to $1,000; Loss Assessment up to $1,000.
Perils Insured Against in Homeowners Section II
Under Coverage E - The policy pays up to the limit of liability for the damages for which an insured is legally liable, including prejudgment interest awarded against an insured. Coverage F - Coverage is provided for injury to a person on the insured location with permission, or off the insured location if the injury is caused by the insured or a residence employee in the course of employment, or by an animal owned by or in the care of an insured.
Exclusions for Coverage E and Coverage F
Coverage E: loss assessments, damage to property owned by an insured; damage to property in the insured's care, custody, or control; injury to anyone eligible to receive worker's compensation and similar benefits; injury and damage covered by a nuclear energy liability policy; and bodily injury to an insured. Coverage F: bodily injury to a residence employee when not working and away from an insured location; anyone eligible to receive worker's compensation and similar benefits; covered by a nuclear energy liability policy; to a resident of the insured location
Section II Conditions
Limit of Liability, Severability of Insurance, Duties After Occurrence, Duties of an Injured Person under Coverage F, Payment of Claim under Coverage F, Legal Action Against Insurer, Other Insurance, Policy Period, and Concealment or Fraud
amends the liability exclusion pertaining to certain types of watercraft liability to provide liability only coverage under the HO policy. No coverage for the boat.
Personal Injury Endorsement
adds liability coverage for personal injury (Libel/Slander) under section II of the HO.
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