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119 Cards in this Set

  • Front
  • Back
intro to homeowner insurance

multi-line policies which means they combine property and casualty coverages in the same policy, packages several coverages related to a specific type of exposure and reduces the no of policies one has to purchase

Homeowner Insurance Eligibility

1. owners-occupants of residential dwellings which do not contain more than 4 families nor more than 2 boarders or roomers per family under the HO2, HO3, HO5, HO8


2. tennants in non-owned buildings used primarily for residential purposes under the HO4


Homeowner Insurance Eligibility

3. Owner-occupants of condos are eligible for coverage for their interest in the condo as well as contents under the HO6


4. dwellings under construction


5. dwellings purchased under installment contracts when purchaser is occupant of the dwelling

Homeowner Insurance Eligibility

6. an occupant of a dwelling under a life estate


7. seasonal dwellings when the insured is covered under a homeowner policy for his or her primary dwelling


8. mobile homes are eligible with the attachment of the mobile home endorsement

Homeowner Insurance Eligibility

The dwelling must be used exclusively as a residence, except for certain incidental occupancies such as offices, professional or private schools or studios.




Note: Farm property is not eligible under any homeowner forms

Definitions- Insured

a. You and residents of your household who are: your relatives or other persons under the age of 21 and in the care of any person named above



Definitions- Insured
b. a student enrolled in school full time, who was a resident of your household before moving out to attend school, provided under the age of 24 and a relative or 21 and in your care or the care of a person described in a. above
Definitions- Insured- under personal liability
insured with respect to animals or watercraft to which the policy applies, includes any person or organization legally responsible for these animals or watercraft which are owned by you or any person included in a or b above.
Definitions- Insured Location

a. the residence premises b. the part of other premises, other structures and grounds used by the insured as a residence and 1) which is shown in the dec or 2) which is acquired by the insured during the policy period for the insured's use as a residence
Definitions- Insured Location

c. any premises used by the insured in connection w/ the premises described in a & b above


d. any part of a premises 1) not owned by an insured 2) where an insured is temporarily residing


e. vacant land, other than farm land, owned by or rented to an insured

Definitions- Insured Location

f. land owned by or rented to an "insured" on which a 1, 2, 3, or 4 family dwelling is being built as a residence for an insured


g. individual or family cemetery plots or burial valuts of an insured


h. any part of a premis occasionally rented to an insured for other than business use

The Homeowner Forms

HO2- Broad Form


HO3- Special Form


HO4- Contents Broad Form aka Tennants or Renters form


HO5-Deluxe Form which provides open peril coverage for buildings and contents


HO6- Condominium Units-Owners Form


HO8- modified coverage form which provides the least amout of coverage

Broad Form-named perils

fire, lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicular damge, smoke, vandalism or malicious mischief, volcanic eruption, falling objects, weight of ice, snow or sleet, accidental
named perils- windstorm or hail

does not include loss to the inside of a building or the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening
Theft- covered under HO2, HO3, HO4, HO6 and HO*-

includes attempted theft and loss of property from a known place when it is likely that the property has been stolen
Theft- HO5
is somewhat broader as certain specified items are covered for theft or being misplaced or lost, applies to personal property that has specific limits such as jewelry, furs, previous and semi-precious stones, fire arms, silverware, goldware and other specifically listed property
Theft Losses not Covered

any committed by an insured, theft that occurs to or in a dwelling that is under construction, one that involves materials and supplies used for the construction of a dwelling before the structure is completed and occupied as a residence, any that occurs in a part of a residence premises which an insured rents out to someone other than another insured, theft of watercraft off the premises
Named perils- Volcanic Eruption

however, earthquake damage, land shock waves or tremors are excluded
Named perils- Falling objects

this peril does not include loss to the inside of a building or property contained in the building unless the roof or an outside wall of the building is first damaged by the falling object. Damage to the falling object itself is not included

Named Perils- Accidental Discharage or


Overflow of Water or Steam

from a heating, air conditioning or plumbing system


(ex. a water pipe bursts or a water pump on a dishwasher suddenly leaks)

Named Perils- Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging
covers a steam or hot water heating system, an air conditioning system, a sprinkler system or an appliance for heating water
Named Perils- Freezing

provides coverage for plumbing, heating, air conditioning systems, household appliances or sprinkler systems provided the insured maintains heat in the building or shuts off the water and drains all system of water. However, if the building is protected by an automatic fire protective sprinkler system, the insured must use reasonable care to continue the water supply and maintain heat in the building

Named Perils- Sudden and Accidental Damage from Artifically Generated Electrical Current
does not cover damage to tubes, transistors, electronic components or circuitry that is a part of appliances, fixtures, computers, home entertainment units or other types of electronic apparatus (note: damage caused by lightning would be covered)

Special Form- HO3

a combination of the broad perils and the "open peril" approach. All of the structures are covered on an "open peril" basis. This means that if a cause of loss is not excluded, then coverage would apply. The burden of proof is up to the insurance company to prove that the loss is excluded. Contents coverage applies on a broad peril basis.
Comprehensive Form- HO5

this is the broadens the homeowner form and is considered the "deluxe" policy. It provides "open peril" coverage on both buildings and contents

Contents Broad Form- HO4

this form is designed to cover the contents of a tenant living in a non-owned structure. This could be an apartment or a dwelling. Since the tenant does not own the structure the form does not provide coverage except for the improvements and betterment that the tenant may have made to the structure at his or her expense. This form provides the named "broad perils"

Unit-Owners Broad Form- HO6

this form is designed for the condominium owner. It covers the structural portion of the condo owned by the insured as well as his or her contents plus any improvements and betterment. Like the HO4 form, property is covered by the "broad perils"

Modified Coverage Form- HO8

this form is the most limited HO form. It provides very basic peril coverage (refer to the chart) and was designed to cover dwellings in which the "replacement cost value" is much greater than "market value". Coverage for both buildings and contents are considered on an actual cash value basis only

General Exclusions

ordiance or law, earth movement, water (including flood), power failure occurring off the residence premises, neglect, war, nuclear hazard, intentional loss, governmental action (except that which is related to a fire or the prevention of a spread of fire)

Limits of Section 1- Property Coverage

provides four major property coverage. You will note that three of the coverage are based on a percentage of the dwelling limit. These will also vary by the number of residential units in the dwelling structure. If these percentages provide inadequate limits, some can be increased by endorsement and the payment of an additional premium

Section 1-Coverage A- Dwelling

full replacement cost as long as the insured carries 80% of the replacement cost value. The insured selects a limit for Coverage A. The minimum amount is subject to each individual company's underwriting rules.
Section 1- Coverage B- Other Structures

10% of Coverage A for one or two family dwellings and 5% of Coverage A for three or four family dwellings. An "other structure" is a structure adjacent to the dwelling not physically attached to the building
Section 1-Coverage C- Personal Property

50% of Coverage A for one or two family dwellings, 30% for a three family dwelling, and 25% for a four family dwelling

Section 1- Coverage D- Loss of Use

30% of Coverage A on HO2, HO3 and HO5- 30% of Coverage C on HO4; 50% of Coverage C on HO^ and 10% ovf Coverage A on HO8

Section 1

Coverage B, C and D stack on top of and are paid in addition to the Coverage A limit.
Section 1- Coverage A- Dwelling

covers- 1. the dwelling described on the dec page of policy 2. structures attached to the dwelling 3. materials and supplies located on or next to the "residence premises" used to construct, alter or repair the dwelling or other structure on the residence premises
Section 1- Coverage A- Dwelling- Condominiums Unit under HO6


a. the alterations, appliances, fixtures and improvements that are part of the building contained within the residence premises


b. property that is the insured's responsibility under a corporation or association of property owner's agreement

Section 1- Coverage B- Other Structures
1. structures located on the insured premises that are separated from the dwelling by a clear space or connected only by a fence, utility line or similar connection. No coverage for structures used for business or for buildings rented to non-tenants unless used as a private garage 2. coverage b is a % of coverage a, depending on the number of family units and is an additional amount of insurance
Section 1- Coverage B- Other Structures

3. Under HO6, owned garages or storage buildings are covered for a stated amount if coverage is needed. 4. under HO8, coverage cannot be increased by endorsement




coverage will be denied if the other strucutre is used in whole or in part for any business purpose except a detached strucutre used to store business property of a non-flammable, non-gaseous structure

Section 1- Coverage C- Personal Property

1. full limit of coverage c applies to personal property anywhere in teh world. Covers personal property owned or used by the insured. 2. under the ho2 ho3 ho5 ho8, a percentage of coverage A applies to coverage c depending on the # of family units as an additional amount of insurance. under ho4 and ho6 the insured establishes an amount of coverage based on actual contents

Section 1- Coverage C- Personal Property

3. if the named insured requests, the following personal property can be covered under the insured's coverage c amount: A) personal property of others while is is located at the insured's premises B) Personal property of a guest or residence employee at a residence occupied by the insured
Section 1- Coverage C- Personal Property
4. for personal property kept at an insured's residence other than the residence premises shown on the dec page, coverage is the larger of $1,000 or 10% 5. when the insured moves to a newly purcahsd primary residence, contents is pro rata between the locations for 30 days in case of a loss 6. personal property at self storage facilities is limited to 10% or $1000, whichever is greater of the personal property limit in the most recent homeowner forms
Coverage C- Exclusions

a. any property that is separately described and specifically insured elsewhere b. animals, birds and fish owned by the insured c. motor vehicles except those pertaining to the service of the premises or for use of handicaped d. aircraft except hobby or model aircraft that is not designed or used to carry people
Coverage C- Exclusions

e. hovercraft and parts, including flarecraft, air cushioned and similar vehicles f. property of roomers, boarders and other tenants not related to insured g. property in an apartment regularly rented or held for rental to others by an insured except as covered under the "landlord furnishings" in "additional coverages"

Coverage C- Exclusions
h. property rented or held for rental to others but only while off the "residence premises" i. business data including data stored in: books of accounts, drawings or other paper records, computers and related equipments j. credit cards or fund transfer cards except as provided in "additional coverages" k. water or steam
Coverage C- Special Limits of Liability

a. $200- Money, bank notes, buillion, gold and silver b. $1,500- securities, accounts, deeds, evidence of debt, letters of credit c. $1,500- watercraft of all types, including their traiilers, furnishings and equipments d. $1,500- trailers and semi-trailers not used with watercraf e. $1,500- theft of jewlery, watches, furs, precious and semi-precious stones
Coverage C- Special Limits of Liability
f. $2,500- theft of firearms g. $2,500- theft of pewterware, goldware and silverware h. $2,500- property on the residence premises used for business purposes i. $1,500- property away from residence premises used for business purposes, except for certain types of electronic equipment
Coverage C- Special Limits of Liability
j. $1,500- electronic equipment that is portable, while in or upon a motor vehicle, but only if the electronic apparatus can be powered from the vehicle's electrical system k. $250- tapes, records, disk, media, wires and antennas which are in or on a motor veh and used with equipment that must transmit, receive or reproduce audio, data or visual signals
Coverage D- Loss of Use


the same as "additional living expense" and "fair rental value" from dwelling property- provides coverage for "indirect losses" such as rent, food and laundry, which result from a covered property loss.


30% under HO2, HO3 and HO5 30% under HO4,


50% under HO6

Deductible- Section 1

a deductible will apply on all section 1 property losses. The standard deductible is $500 which can be reduced for an additional premium or increased for a premium reduction. The deductible is per occurrence not per piece of damaged property.

Section 1- Additional Coverages- Debris


Removal


a. when a covered loss occurs the policy covers the removal of debris. This expense is included in the limit of liab that applies to the damaged property. If the amount to be paid for the direct damage plus the debris removal expense is more than the limit of liab for the damaged property, an additional 5% of that limit is available for such expense

Section 1- Additional Coverages- Debris


Removal

b. Debris removal also addresses the removal of fallen trees caused by the perils of windstorm or hail or weight of ice, snow or sleet. Coverage applies when a covered structure is damaged or if the structure is not damage, coverage applies if the tree blocks a driveway on teh residence premises preventing entry or exit from the residence premises or block a ramp or other fixture- a limit of $1k is the most that will be paid regardless of the # of fallen trees, no more than $500 per tree, also provides coverage to a neighbor's tree felled by a peril insured against
Section 1- Additional Coverages- Reasonable Repairs
when the structure is damaged by an insured peril the policy provides coverage within the limits to pay for temporary repairs until permanent repairs can be made. For ex: the wind blows off a portion of a roof. The policy pays to install a temp cover to protect the dwelling from additional damage. This coverage is no additional and does not increase the limits of the policy
Section 1- Additional Coverages- Trees, Shrubs and Other Plants
covered for limited specified perils including fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident in the dwelling, vandalism and malicious mischief or theft. They ave covered for up to 5% of the dwelling limit and subject o a max limit of $500 for any one tree, shrub or plant. This coverage is additional insurance and is in addition to the limits of the policy
Section 1- Additional Coverages- Fire Dept Service Charge
coverage is provided for up to $500. this coverage is additional insurance and the ded does not apply

Section 1- Additional Coverages- Property Removed (Removal Clause)

when the insured is removing property from the premises when endangered by a peril insured against, coverage applies to any direct loss from any cause for not more than 30 days while removed. This coverage is not additional insurance and does not increase the limits of the policy

Section 1- Additional Coverages- Credit Card, Electronic Fund Transfer Card or Access Device, Forgery and Counterfeit Money

covered for a limit of $500. This coverage is additional insurance and the deductible does not apply

Section 1- Additional Coverages- Loss Assessment

pays up to $1000 when the insured is assessed by a corporation or property owners association for damage to property owned collectively if damaged by a peril insured against under the insured's policy. This coverage is additional insurance and is addition to the limits of the policy

Section 1- Additional Coverages- Glass of Safety Glazing Material

covers loss of doors and windows of the dwelling as a result of breakage of glass or safety glazing material. Under the HO2, HO3 and HO5, this coverage is excluded if the dwelling has been vacant for 60 or more consecutive days, except for earth movement. This coverage is not additional insurance and does not increase the limits of the policy
Section 1- Additional Coverages- Collapse

covers direct physical loss to covered property involving abrupt falling down or vaing in of a building or any part of it. It is found in all the homeownere forms except the HO8. It is not additional insurance and doesn't increase policy limits. It covers: a. the perils insured against in the policy b. decay hidden from view c. hidden vermin or insect damage d. weight of contents, equipment, animals or people e. weight of rain collected on a roof and f. used of defective materials/methods when teh collapse occurs during constructure or remodeling
Section 1- Additional Coverages- Collapse

doesn't included- settling, cracking, shrinking, bulging, expansion of a building




Excluded: awnings and fences, patios and swimming pools, underground pipes, flues, drains, cesspools and septic tanks and foundations, retaining wall and docks

Section 1- Additional Coverages- Landlord's Furnishings
provides up to $2,500 for landlords furnishings. This additional coverage excludes theft of these items. This coverage is not additional insurance and does not increase the limits of the policy

Section 1- Additional Coverages- Building Additions and Alterations

included under the HO4 tenants form for up to 10% of the personal property coverage limit and automatically included in the HO6 Condominium Owner form.
Section 1- Additional Coverages- Ordinance or Law

provides up to 10% of coverage A- Dwelling for increased costs the insured incurs due to the enforcement of any ordinance or law which requires or regulates the construction, demolition, remodeling or repair of the covered building damaged by a peril insured against. This coverage is additional insurance and is in addition to the limits of the policy

Section 1- Additional Coverages- Gravemarkers

Pays up to $5,000 for gravemarkers including mausoleums on or away from the residence premises by a peril insured against. This coverage is not additional insurance and does not increase the limits of the policy
Property Conditions- Section 1

insurance interest, insured's duties after a loss, loss settlement, loss to a pair or set, glass replacement, appraisal, other insurnace, suit against insurer, repair or replace option- right of salvage, loss payment, abandonment, mortgagee clause, no benefit to bailee, intentional acts

Property Conditions- Insurable Interest

if more than one person has an insurable interest in the property covered, the insurer will not pay more than that person's insurable interest or more than the limit of liability

Property Conditions- Insured's Duties after Loss

give prompt notice, notify the policy in case of loss by theft, notify credit card or electronic fund transfer companies, protect property from further damage, make reasonable repairs to protect the property and keep records of expenditures, cooperate w/ investigation, prepare an inventory of damaged personal property, show the damaged property and provide info requested by the insurer, send w/i 60 days a completed proof of loss
Property Conditions- Loss Settlement Provisions

personal property are settled on an actual cash value basis, buildings and other structure claims are paid on a replacement cost basis- if at the time of loss insurance is 80% or more
Section 2: Coverage E- Personal Liability


pays on behalf of the insured all sums he or she is legally obligated to pay others because of bi and pd to others caused by an occurrence, standard min is $100K per occurrence, will also pay legal defense expenses for the insured


1. premises in dec, 2. personal activities (sports, social events anywhere in the world 3. acts of residence ee's 4. vacant land 5. individual or family cemetery plots

Section 2:Coverage F- Medical Payments to Others


"good will" coverage that pays the medical bills inccurred by others in an accident, regardless of the fault or liability of the insured, minimum limit is $1k per person per occurence. will pay for following as long as they are claimed within 3 yeras- medical and surgical care, xrays, dental services, ambulance, hospital and professional services, funeral services


pain and suffering are not covered, insureds and reg residents are not eligible

Section 2- Liability Exclusions (Personal Liab & Med Payments)

1. losses that are expected or intended


2. business pursuits conducted on or off the residence premises *unless < $2K in 1 yr


3. losses for the insured's rendering of or failure to render professional services


4. ownership, maintenance, use, loading or unloading of motor vehicles


5. ownership, maintenance, use, loading or unloading of watercraft



Section 2- Liability Exclusions (Personal Liab & Med Payments)

6. ownership, maintenance, use, loading or unloading of an aircraft or hovercraft


7. war including accidental discharge of nuclear weapons


8. transmission of a communicable disease by an insured

Section 2- Liability Exclusions (Personal Liab & Med Payments

9. sexual molestation, corporal punishment or physical or mental abuse and


10. the use, sale, manufacture, delivery, transfer or possession by any person of a controlled substance

Coverage E- Personal Liability Exclusions


1. pd to property rented to, occupied by, used by or in the care, custody or control of an insured


2. bi to peopel covered by wc or disability insurance


3. bi or pd to an insured


4. contractual liab except a. that which relates to ownership, maintenance or use of an insured location and b. where liab of others has been assumed by the insured prior to an occurrence

Coverage F- Medical Payments to Others Exclusions


1. to a residence ee not sustained in the course of employment or occurring off premises 2. to any person eligible to receive wc or disability coverage 3. from any nuclear reaction 4. to anyone regularly residing on the insured premises

Additional Coverages Under Section II- Liability


1. Claims Expenses


a. cost of investigating a claim


b. premiums for bonds required in a suit the company defends


c. reasonable expense incurred by the insured at the company's request, limit of $250 per day


d interest on judgment that accrues after the judgement has been entered

Additional Coverages Under Section II- Liability

2. First Aid- the insurance co will pay for first aid expenses incurred by an insured for first aid to others (not an insured)



Additional Coverages Under Section II- Liability

3. damage to property of others- insurer will pay up to $1k for accidental damage to property of other caused by the insured excluding


a. property recoverable under section 1, pd caused intentionally by an insured who is 13 years or older c. property owned by the insured d. property owned by tenant of insured e. business property unless otherwise provided for f. the ownership, main. or use of aircraft, watercraft or other motor vehicle

Additional Coverages Under Section II- Liability

4. Loss Assessment- $1k per occurence


a. BI or PD not excluded under Section 2


b. liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee

General Conditions- Concealment of Fraud

no coverage for insureds that intentionally conceal or misrepresent any material fact

General Conditions- Waiver or Change

waiver or change to the policy must be in writing. This is usually done by use of an endorsement

General Conditions- Cancellation


a. insured may cancel at any time for any reason


b. insurance co may only cancel for reasons listed in stated law section

General Conditions- Nonrenewal

when the insurer decides not to continue coverage on the anniversary date of the policy by giving 30 days notice

General Conditions- Short- Rate Refund

when the insured cancels the policy, the unearned premium is returned to the insured on a short-rate basis
General Conditions- Pro Rata Refund

when the insurer cancels the policy, the unearned premium is returned on pro-rata basis
General Conditions- Death

If an insured dies during the policy period, the legal representatives of the deceased will be protected by the Homeowner Policy

General Conditions- Assignment
a policyholder cannot give the policy to another person without written permission from the insurance company
General Conditions- Liberalization

if the insurer makes a change which broadens coverage under the current edition of the policy without additional premium charge, the change will automatically apply to this insurance as of the date the insurer implements the change, provided this implementation date falls within 60 days prior to or during the policy period stated in the dec
General Conditions- Subrogation

the insured may waive in writing before a loss all rights of recovery against any person. If not waived, the insurer may require an assignment of rights of recovery for a loss to the extent that payment is made by the insurer
Section II- Conditions


a. limit of liability- limit will not be more than coverage e limit


b. severability of insurance- applies separately to each "insured"- condition will not increase our limit of liab for any one occurrence


c. duties after an occurence- spells out the duties of the insured if there is a claim

Section II- Conditions

d. duties of an injured person- the injured person will give the company written proof of claim, authorize the company to obtain copies of medical records, the injured person will submit to a physical exam


e. payment of claim- med pay- payment of claim is not an admission of liability by an insured or the insurer

Section II- Conditions

g. bankruptcy of an insured- bankruptcy or insolvency of an insured will not relieve the insurer of its obligation under the policy


h. other insurance- the ins under the policy is excess over other valid and collectible insurance except written specifically to cover an excess over the limits of liab that apply in this policy

Section II- Conditions

i. policy period- applies only to bi or pd which occurs during the policy period


j. concealment or fraud- insurer does not provide coverage to an "insured" who whether before or after a loss has: intentionally concealed or misrepresented any material fact or circumstance, engaged in fraudulent conduct or made false statements relating to this insurance

VII. Homeowner Policy Endorsements- Earthquake Endorsements
when earthquake coverage is purchased an additional charge is made for the coverage- a single earthquake= all earthquake shocks occurring within a 72 hour period, type of construction of dwelling is a significant factor in earthquake rates- different rates for frame buildings (wood) vs masonry (brick, stone adobe or concrete block), masonry rates usually significantly higher
VII. Homeowner Policy Endorsements- Inflation Guard Endorsement


automatically raises the limits for coverages a, b, c and d at periodic intervals. helps to keep the amount of insurance-to-value for the dwelling at a level adequate to guarantee replacement cost in the event of a loss, not widely used

VII. Homeowner Policy Endorsements- Personal Property Replacement Cost Endorsement

provides that the policy will reimburse losses to personal property on a replacement cost basis rather than actual cash value in the same way that Homeowner forms reimburse loss to dwellings and other structures. Some property is excluded, such as obsolete articles, antiques, fine arts and paintings that can't easily be replaced

VII. Homeowner Policy Endorsements- Scheduled Personal Property Endorsement

provides scheduled coverage for items such a jewelry, furs, cameras, musical instruments, silverware, golfer's equipment, fine arts, stamps, coins and other articles. Property is covered on an all risk basis subject to limitations and exclusions
VII. Homeowner Policy Endorsements- Scheduled Personal Property Endorsement- Fine Arts Coverage

a. repairing, restoration or retouching process is not covered


b. breakage of art glass windows, glassware, statuary, marble bric-a-brac, porcelains and similar fragile articles are covered for the following named perils: 1. fire or lightning 2. explosion, aircraft or collison 3. windstorm, earthquake or flood 4. malicious damage or theft 5. derailment or overturn of a conveyance

VII. Homeowner Policy Endorsements- Scheduled Personal Property Endorsement- Postage Stamps and Current Coin Collections


exclusions:


a. fading, creasing, denting, scratching, tearing or thinning


b. transfer of colors, inherent defects, dampness, extremes of temp or depreciation


c. while being handled or worked on


d. disapperance of individual stamps


e. shipping by mail other than registered mail

VII. Homeowner Policy Endorsements- Scheduled Personal Property Endorsement- Newly Acquired Property- Jewelry, Furs, Cameras and Musical Instruments


a. 25% of the amount of insurance for that class of property or $10,000


b. when new property is acquired you must report these objects to the company within 30 days and pay an additional premium

VII. Homeowner Policy Endorsements- Scheduled Personal Property Endorsement- Newly Acquired Property-Fine Arts

a. policy will not pay more than 25% of the amount of insurance for fine arts scheduled


b. these objects must be reported to the company within 90 days and pay an additional premium


VII. Homeowner Policy Endorsements- Ordinance or Law Enforcement
can be added to cover the additional loss that may result from any ordinance or law regarding the construction, repair or demolition of property. 10% of coverage A is already provided as additional ordinance or law coverage and this endorsement may be used to purchase higher amounts of coverage
VII. Homeowner Policy Endorsements- Sinkhole Collapse Endorsement

loss by sinkhole collapse means actual pd caused by sudden settlement or collapse of the earth supporting insured property resulting from underground voids created by the action of water on limestone or similar rock formations
VII. Homeowner Policy Endorsements- Condominium Endorsements
an endorsement may be used to provide unit owners with open peril coverage for Coverage A to the extent that the building items are insured, another endorsement may be used to provide unit owners with special coverage for coverage C- personal property, an endorsement is also available to cover the owners while the residence is rented to others
VII. Homeowner Policy Endorsements- Sewer Backup Endorsement

an endorsement can be attached to provide up to $5k of coverage for losses caused by water which backs up through sewers or drains or which overflows from a sump pump, even when caused by mechanical breakdown of the pump a special ded of $250 applies to this coverage
VII. Homeowner Policy Endorsements- Home Business Insurance Endorsement

provides both business property and liab coverage for a variety of home businesses, business must be owned by the named insured. time element coverages include business income, extended business income, extra expense and loss of business income because of the action of civil authority, liab coverage is on an aggregate basis
VII. Homeowner Policy Endorsements- Identity Fraud Expense Coverage

provides reimbursement of expenses incurred as a result of identity theft or fraud, covered expenses up to $15,000 limit include reasonable attorney fees to defend suits broughy by merchants, financial institutions, or collection agencies, costs incurred to re-apply for any laons rejected soley because of incorrect credit info, lost income for time taken to meet with law enforcement and charges for long distance phone calls
Optional Liability Endorsements- Section II- Additional Residence Rented to Others

provides personal liability and medical payments coverages for an additional location that is shown in the policy
Optional Liability Endorsements- Section II- Incidental Occupancies
an endorsement must be used to specifically cover the liability exposure of office, professional, private school or studio use- it is the permitted incidental occupancies endorsement
Optional Liability Endorsements- Section II- Home Day Care Coverage Endorsement
may be added to insure the liability exposure arising out of a home day care business conducted by the insured on the residence premises, excludes coverage for BI or pd arising out of sexual molestation, corporal punishment or physical or mental abuse
Optional Liability Endorsements- Section II- Watercraft

liability for BI and PD arising out of the ownership, maintenance or use of usually excluded watercraft, insurance applies to please use and not while being used to carry persons for a fee or while rented to others

Optional Liability Endorsements- Section II- Workers Compensation Benefits


for injuries to a residence employee may be added to a homeowner policy by endorsement. two coverage are provided: statutory workers compensation benefits and employers liability

Optional Liability Endorsements- Section II- Personal Injury Coverage

amends the definition of BI to include personal injury- injury arising out of false arrest, libel, slander, defamation of character, invasion of privacy and other offense that could result in a personal liability claim
Mobile Homes
1. definition of residence premises- refers to the mobile home and other structures on land owned or leased by the insured, mobile home must be designed for year-round living and not less than 10ft in width and 40 ft in length,
Mobile Homes
2. Dwelling- Coverage A- applies to the mobile home on the residence premises shown in the dec, includes structures and utility tanks attached to the mobile home and items installed on a permanent basis, including floor coverings, appliance, dressers and cabinets
Mobile Homes

3. Other Strucutres- Coverags B- Provides 10% of Coverage A, or minimum of 2k if less


4. removal clause- if the insured mobile home is endanged by an insured peril and removal is necessary to remove damage, policy will pay up to $500 for expenses to remove and return the covered property

Mobile Homes
5. Section 1- Conditions- if the 80% to value is carried, replacement cost applies to all property under coverage A, which includes replacement cost for carpeting and household appliance but does not include awnings and outdoor antennas
Mobile Home Transportation Coverage Endorsement

gives coverage for transportation perils of collision, upset and stranding or sinking of mobile home while being transported on a licensed ferry, coverage applies for 30 days anywhere in the continental US or Canada