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25 Cards in this Set
- Front
- Back
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Endorsements Modifying limits (HO Endorsements) |
Endorsements modifying limits: Specified additional amount of insurance for coverage A - increases coverage limits by a percentage specified in the schedule (may be appropriate for homes located in areas prone to hurricane or catastrophe). This increases dwelling coverage by certain % if actual loss to the dwelling exceeds policy's limit of coverage A. Requires the insured to have allowed the insurer to adjust the Coverage A limit in accordance with the insurer's property evaluation and increases in inflation. Insured must notify the insurer within 30 days of completion of any improvement that increases the building's replacement cost by 5% or more. Additional limits of liability for coverage A, B, C and D - increase coverage limits by a percentage specified in the schedule. Almost the same as prior endorsement accept in this endorsement if the loss exceeds coverage A limit the % increase will apply to A-D coverage. |
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Endorsements modifying limits pt.2 |
Endorsements modifying limits: Increased limits of business property - increases limit applicable to business prop, unendorsed policy covers business property w/ $2500 sublimit (appropriate if business property in home that exceeds $2500). Inflation guard - coverage A-D increased annually by percentage shown in schedule (applied pro-rata during policy period). Added b/c value of a home typically increases. Other structures on the residence premises - increases limit for other structures. Coverage B "other structures" is normally limited to 10% coverage A, this endorsement increases that. |
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Endorsements modifying limits pt.3 |
Endorsements modifying limits: Personal property at other residences - increases coverage C limit for property at other residences. Unendorsed the insured's personal property at another residence usually covered for greater of 10% of coverage C or $1000. Increased amount of insurance for personal property located in a self-storage facility - increases limit of property in a storage facility to amount shown in the schedule. Unendorsed the property has greater of 10% of coverage C or $1000. |
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Endorsements modifying limits pt.4 |
Endorsements modifying limits: Coverage C increased special limits of liabiility - increases sublimits applicable to certain property such as money, jewelry and electronic equipment. Unendorsed, money only covered up to $200 Scheduled personal property endorsement - allows additional limits separate from the coverage C limit (open peril bases without several exclusions that normally apply to open perils coverage) (applies to jewelry, fine arts, silverware, furs, cameras, musical instruments, golf equipment, fine arts, stamp collections or coin collections, and items are scheduled). Increases unendorsed sublimit to a new sublimit so normal sublimits will not apply it will be the endorsement sublimits (for adequate limits that are separate from the Coverage C limit and not subjectg to the Coverage C special limits). Insurer will pay full amount for scheduled jewelry and coverage for jewelry acquired after policy inception is limited to 25% of the amount of insurance for that class or $10,000 whichever is less. Insured required to surrender damaged property to the insurer upon the insurer's request. |
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Endorsements modifiying limits pt.5 |
Credit card, electronic fund transfer card or access device, forgery and counterfeit money coverage - additional coverage provided according to the schedule. Unendorsed, false charges on credit card covered up to $500. Ordinance or law increased amount of coverage - increases ordinance or law coverage from 10% of coverage A to the percentage shown on the schedule. |
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Endorsements adding deductibles |
Windstorm or hail percentage deductible - deductible is percentage of coverage A limit (higher deductible makes it more likely for insurers to insure homes in area prone to windstorm or hail.) Unendorsed has a stated dollar amount for deductible, this endorsement changes the dollar amount to a % of Coverage A. Hurricane deductible - either a stated amount or percentage of coverage A (applies to windstorm or hail losses occurring only during a hurricane). These 2 endorsements may entice insurer to write policy on home when insurer would otherwise not be willing to do so. |
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Modifying perils insured against (endorsements) |
Special computer coverage endorsement - covers hardware, software and operating systems on open-perils basis. Unendorsed covered on named perils basis. Only useful if insured does not have open perils coverage on personal property. Limited fungi, wet or dry rot or bacteria coverage - modifies sections I and II to cover damage caused by fungi, rot or bacteria. Earthquake - adds earthquake as an insured peril. |
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Modifying perils insured against pt.2 |
Loss assessment coverage for earthquake - adds the peril of earthquake only for purposes of loss assessment coverage, includes coverage for earth movement caused by volcanic eruption. Identify fraud expense coverage - provides up to $15,000 of coverage for losses due to identity fraud. Schedule personal property endorsement - not only increases the limits of liability but also provides open-perils coverage for items listed on the schedule. Unendorsed provides named perils coverage. |
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Modifying perils insured against pt.3 |
Refrigerated property coverage - covers spoilage of refrigerated property caused by power outage or mechanical failure. Limited water backup and sump discharge or overflow coverage - covers damage caused by water originating within the home backing up through sewers. Sinkhole collapse - modifies earth movement exclusion so it does not apply to sinkholes. Under this endorsement earthquake not covered but sinkhole would be. |
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Modifying perils insured against pt.4 |
Special personal property coverage - modifies HO-4 (renters) to apply open-perils coverage to coverage C. Unendorsed covers named perils. Unit-owners coverage C special coverage - modifies HO-6 (condo, unit owners) to apply open-perils coverage to coverage C. Unit owners coverage A special coverage - modifies HO-6 to apply open-perils coverage to coverage A. |
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Modifying property valuation provisions (endorsements) |
Normally HO-3 values property if there's a loss under coverage A using replacement cost and coverage C (personal property) uses ACV (replacement cost - depreciation). Modifying property valuation provisions: Schedule personal property endorsement (with agreed value loss settlement) - scheduled personal property is covered on an agreed-value basis. Insured and agent agree when policy is written what the value of property is. Personal property replacement cost loss settlement - insurers personal property on a replacement cost basis, not ACV. Useful when the insured wants to insure personal property, including household appliances, on a replacement cost basis instead of an actual cash value basis. |
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Modifying valuation provisions pt.2 |
Replacement cost loss settlement for certain non-building structures on the residence premises - applies replacement cost to structures that would normally be covered on an actual cash value basis under coverage C. E.x. masonry wall covered under coverage C would normally be covered for ACV, this endorsement covers it for replacement cost. Actual cash value loss settlement - replaces loss settlement condition with statement that covered property losses will be settled at actual cash value. Unendorsed HO-3 there is condition called "loss settlement condition," this endorsement gets rid of that condition and replaces it by stating that all losses will be covered using ACV. This can make settling easier and can be less expensive as ACV is less than replacement cost. |
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Modifying valuation provisions pt.3 |
Actual cash value loss settlement windstorm or hail losses to roof surfacing - modifies section I loss settlement conditions so actual cash value settlement, will apply to covered damage to roof. Unendorsed roof usually covered under coverage A (dwelling) on replacement cost basis. This endorsement may make premiums cheaper. Functional replacement cost loss settlement - loss settlement based on cost to repair or replace using common materials and methods (may be appropriate for older homes). In order to reduce premium, instead of having replacement cost as coverage A valuation, this endorsement is for functional replacement cost. |
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Insuring business exposures |
Endorsements that insure business exposures: Home business insurance coverage - provides various additional coverages. Section I - provides separate limit of insurance for other structures (covers loss of business income, removes $2,500 limit on business property, increases special limit on money to $1000, may cover some leased property if used in business (applies Coverage C to business personal property of others in the named insured's care and to leased personal property that the named insured has a contractual duty to insure)). Section II - provides liability coverage for business operations, e.x. insured doing taxes in garage and client comes in to pick up and falls, this endorsement covers that. Definition of insured includes employees. Even if this endorsement is added, the insured must acquire additional policies to cover any other exposures not covered by the endorsed HO policy. |
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Insuring business exposures pt.2 |
Loss payable provisions - names another loss payee. E.x. insured borrows money as part of business the lender may want to be included as loss payee under policy. Used only with home business insurance coverage endorsement. Additional insured - managers or lessors of premises leased to an insured - adds lessor to definition of insured under the policy. E.x. If someone gets hurt in a garage that insured is renting form another person and the owner of the property gets sued this endorsement covers them. Additional insured - vendors - adds a vendor to definition of insured with respect to specific product being sold. E.x. insured has independent contractor helping sell their product, the contractor can be added as an insured under this endorsement. |
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Insuring business exposures pt.3 |
Exclusion - personal and advertising injury - excludes advertising liability from the home business endorsement. Not only does the home business endorsement cover leased property and eliminate $2500 limit it also covers advertising liability. If insured doesn't want the advertising coverage under that endorsement can get this exclusion so premium can be lowered. Liquor liability exclusion and exception for schedule activities - excludes liquor liability in some situations. Some insured's can't get insurance for their business w/o this. Special coverage - spoilage of perishable stock - covers perishable stock against loss resulting form breakdown or power outage. E.x. insured is a florist and had flowers in garage, the power goes out and they are damaged, this would cover that. |
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Insuring business exposures pt.4 |
Valuable papers and records coverage increased limits - increases limit from $2,500 to amount whatever shown in schedule. Permitted incidental occupancies (residence premises) - covers permitted incidental occupancy, such as music studio. Permitted incidental occupancies (other residence) - covers occupancy in secondary residence. |
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Insuring business exposures pt.5 |
Home day care coverage endorsement - covers home day care business being conducted at residence premises, modifies both section I and II (excludes coverage for liability arising out of motor vehicles and watercraft). Adds coverage C coverage to business property, instead of having $2500 limit on business property it would have the coverage C limit which is generally 50% of coverage A. Provides liability coverage. Business pursuits - provides coverage for a liability arising out of business activities provided insured does not own business, is a partner in it or financially control it. E.x. insured works for manufacturing company as a sales rep and is out in the field, this offers coverage for losses under this endorsement. Excludes coverage for liability arising out of professional services other than teaching, bodily injury to a fellow employee of the insured in the course of employment and liability for business activities with a business the insured owns. |
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Insuring rental exposures |
Structures rented to others - covers "other structures" located on insured premises, rented to anyone not a tenant of the dwelling (provides section I and II coverage). E.x. if insured is renting out detached garage. Extended theft coverage for residence premises occasionally rented to others - covers theft committed by occasional tenant (excludes certain precious items (jewelry, watches (count as jewelry), coins, furs)). Unendorsed named perils coverage doesn't cover theft if committed by occasional tenant, this endorsement covers theft by occasional tenant. |
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Insuring rental exposures pt.2 |
Landlord's furnishings - increases $2,500 limit for each rental unit. Not applicable to HO-4 (renters) or HO-6 (unit owners, condo). This endorsement is for when the insured holds one or more apartmentS on the residence premises for rental and wants to increase the $2,500 limit on landlord's furnishings additional coverage. Applies when the insured is the landlord. Unit owners rental to others - modifies coverage C of HO-6 to cover the insured premises, even when it is rented to others. Deletes the exclusion of theft from that part of the residence premises rented by an insured to someone other than another insured. Excludes theft of certain precious items (jewelry, securities, money etc). Would need this endorsement if insured owns condo but is not living in it and wants coverage for a renter. |
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Insuring rental exposures pt.3 |
Additional residence rented to others 1,2,3 or 4 families (HO 24 70) - modifies definition of insured location to include the location of the additional residence listed in the schedule. Liability coverage for a residence the insured does not reside in and rents continuously. If an individual owns an additional residence that is rented, it is ineligible for HO coverage without this endorsement. |
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Miscellaneous Exposures |
Endorsements for miscellaneous exposures: Assisted living care coverage - extends coverage to relative in assisted-living facility (Limits apply to hearing aids, glasses etc). Can be used to extend coverage to personal property owned or used by a relative who resides in an assisted living facility. Coverage B - Other structures away from the residence premises - covers other structure located away from residence premises. Includes toolshed on parcel of land near residence premises (normally would have to be on the residence premises), limit is 10% of coverage A. Provides for loss settlement on ACV basis. |
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Misc exposures pt.2 |
Specific structures away from the residence premises - covers other structure located away from residence premises. Limit is amount listed in schedule, not 10% of coverage A. Allows the insured to cover "other structures" that are located away from the residence premises for which the insured wants a limit of insurance that is separate from the limit applicable to other structures on the residence property. Additional insured - student living away from the residence premises - covers relatives age 24 or older, or nonrelatives under age 21 who are part-time students. Unendorsed a relative under age 24 and a student is covered, this extends that to relative who's 24 or older. Unendorsed, nonrelatives are covered if they're under 21 and are full time student, this endorsement changes that to part time student. |
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Misc exposures pt.3 |
Watercraft - extends liability coverage to: Watercraft with more than 25 horsepower, sailing vessels 26ft or longer. Doesn't apply to any business use of the watercraft. Canine liability exclusion endorsement - excludes coverage E and F for damage resulting from a dog. If insured has a dog that has bitten someone in the past it may be difficult to get insurance, this endorsement may be the only way to get insurer to write a policy so insurer won't get sued. Personal injury coverage - adds coverage for slander, libel, false arrest, detention or imprisonment, wrongful eviction, malicious prosecution or violation of right of privacy. One of the effects of the Personal Injury endorsement is to add the definition of personal injury. |
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Misc exposures pt.4 |
Owned motorized golf cart physical loss coverage - covers physical damage to scheduled golf cart on open-perils basis. $500 deductible applies. Owned snowmobile - provides liability coverage for an owned snowmobile used off an insured premises. Unendorsed policy only provides coverage if snowmobile used on insured premises. Incidental Low Power Recreational Motor Vehicle Liability Coverage - provides liability coverage for off-road usage of a recreational vehicle manufactured for a maximum speed of 15mph. |
