Chapter 3

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Chapter 3
2011-01-05 01:33:46
Homeowner Section

Chapter three
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  1. Eligibility
    • HO-2, HO-3, HO-5 and HO-8 - only for owner occupied dwellings
    • HO-4 and HO-6 - to insure personal property and personal liability, do not cover structure, HO-4 for tenants, HO-6 for condominium unit-owners
    • Dwellings under construction that are intended to be owner-occupied are also eligible
  2. HO-2 (Broad Form)
    • dwelling and other structures are insured; paid on replacement cost basis
    • contents and personal property are insured; paid on an actual cash value basis
    • both for broad form perils
    • does not cover loss caused by a vehicle owned or operated by insured
  3. HO-3 (Special Form)
    • dwelling and other structures - insured for risk of direct physical loss ( open peril ); paid on replacement cost basis
    • contents and personal property - insured for broad form perils; paid on ACV basis
  4. HO-4 (Contents Broad Form; Renter's or Tenant's Form)
    Contents and personal property - broad from peril coverage; paid on actual cash value basis
  5. HO-5 (Comprehensive Form )
    • HO-3 + HO -15= HO-5
    • personal property and contents - open peril coverage plus dwelling and other structures
    • personal property and contents - paid on ACV basis
    • dwelling and other structures - replacement cost basis
  6. HO-6 (Unit-owners form)
    • porperty of a condominium unit-owner - broad form peril coverage
    • covers real property - insured is responsible under association's agreement, and insured's personal property while anywhere in the world
  7. HO-8 (Modified Form)
    • insuring older homes where replacement value and market value disporoportionate
    • insurance limit - market value of the dwelling
    • losses of contents - paid on ACV basis
  8. Insured
    • You and ur relatives
    • a relative student under 24 who was enrolled full time before moving out or 21 in your care
    • person legally responsible for animals or watercraft owned by an insured
    • motor vehicle - persons using the vehicle on an insured location with insured's consent
  9. Insured locations
    • residence premises
    • premises shown in Declarations
    • a premise in connection with the above
    • vacant land and farmland rented to an insured
    • land rented by an insured where residence is built
    • individual and family cemetery plots
    • premises rented to insured for nonbusiness use
  10. Residence Employee
    employee whose duties are related to maintainence or use of residence premises
  11. Residence Premises
    • One to four-family dwelling where the insured resdies
    • including other structures and grounds
  12. Deductible
    • policy limit that apply
    • the insurer will only pay that part of the total of losses payable under Section 1 that exceeds the deductible amount shown in Declarations
    • Std Deductible - $250
  13. Property Coverage
    Coverage A - Dwelling
    • covers dwellings and structures attached to it
    • not cover
    • land;theft if it is under construction;vandalism and malicious mischief if vacant for more than 60days
    • amt of insurance at the time of loss equal or exceed 80% of the replacement cost to qualify
  14. Property Coverage
    Coverage B - Other Strucutres
    • provides additional 10% of Coverage amt of insurance
    • apply to covered losses to related structures separated from the dwelling
    • insurance limit - increase by endorsement
    • to qualify - amt of insurance = 80% replacement cost
  15. Property Coverage
    Coverage C - Personal Property
    • additional amt of insurance
    • 50% of coverage A amt
    • apply to personal property including clothing
    • anywhere in the world
    • to loss belonging to a guest or servant
    • if on secondary residence - coverage 10% of amt of Coverage C or $1000; property located on principal residence - without 10% limitation
  16. Coverage C property coverage limits
    • $200 - money
    • $1500 - securities, watercraft, theft of jewlery, electronic appratus
    • $2500 - theft of silverware, firearms, property for business
    • $500 - business property off the residence
    • loss of wind or theft - not covered
  17. Property not covered under Coverage C
    • articles separately insured in other insurance
    • animals
    • motor vheicles
    • aircraft
    • credit cards
    • property of a roomer or tenant
    • windstorm damage
  18. Loss of Use (Indirect Loss)
    • pays for any necessary increase in living expenses
    • period is limited to the shortest time
    • if a part of residence is rented at the time of loss, coverage will pay lost rental value less any expenses that do not continue
  19. Coverage Limits
    • HO-2, HO-3, HO-5 - 30% of coverage A limit
    • HO-4 - 30% of coverage C limit
    • HO-6 - 50% of coverage C limit
    • HO-8 - 10% of coverage A limit
  20. Earthquake endorsements
    • loss cuased by earthquake, provided to property insured under coverages A, B and C,
    • does not cover loss to exterior mansonry and loss from flood
    • dedtctible - a % of coverage A or C
    • deductible - not less than $250
  21. Home day care coverage endorsement
    • coverage is for a home day care business
    • insured under coverage C
    • additional premium charge - determined by number of children