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Homeowners Variations, Endorsements

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Variations in ISO Homeowners Forms

Why Variations in Homeowners are required if HO-3 is available?

ISO forms HO-2, HO-4, HO-5, HO-6, HO-8

Contains both Section I and Section II

Section IILiability Coverages is same in all forms and variation

exists in Section I- Property Coverages

Named Perils, Open Perils or All-Risks( Special-forms coverage)

Burden of Proof

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HO Variants

HO-2o Designed for owner occupant of house

o Named Peril Policy (Coverage A, B, C)

o Burden of proof lies with insured

o Lesser premium when compared to HO-3

HO-5o Special-form coverage not only for Coverage A, B but also to

to Coverage C

o Coverage for Water Damage including Flood Damage

o Coverage to personal property damaged by rain through an open

window. Door, or roof opening even if the building is not damaged

o Special Limits of $1500 for Jewellery, Furs and $ 2500 for firearms

and silverware also apply not only to theft but also for misplacing

and No Dollar Limit applies but subject to Deductible

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HO-Variant HO-4

HO-4

o Designed for persons who doesn't own homes and is meets

the needs of persons or families who lives in a rented house

or Apartments

o Otherwise Called as Contents Broad Form is referred to as

Tenants Homeowners Policyo Coverages A and B are absent

o Coverage C can be elected as Broad

o Coverage D is 30% of the Coverage C

o Building additions and alterations 10% of Coverage C

o Landlords furnishings is not covered

o Ordinance Law 10% building additions and alterations

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HO-Variant HO-6

HO-6

o Covers the exposures of Condominium Units or Cooperative Unit

o Coverage A Basic Limit of $5000

o Coverage B is eliminated

o Coverage C Limit selected by the insuredo Coverage D 50% of Coverage C Limit

o Coverage A covered under Named Perils but losses are settled on

a replacement Cost Basis

o No Coinsurance Requirement as in HO-3

o Additional Coverages:

Trees, shrubs and Other Plants: 10% Coverage C

Glass ware Covered only if it is a part of Insured Unit

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HO-Variant HO-8

HO-8

o For Houses with Obsolete Constructiono Replacement Cost exceeds the Market Value

o Designed to address Moral Hazard and Law of Indemnity

problems inherent in HO-3

o The HO-8 policy solves this problem by paying what it would cost

to repair or replace damaged property, using common construction

materials and methods. HO-8 provides Functional Replacement

which is cheaper

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Other Endorsements

Inflation Guard Endorsement

Scheduled Personal Property Endorsement

Except HO-5, all HO policies covers Coverage C on Named Perils basis

All the HO policies have special sub limits

This endorsement provides scheduled coverage for specific itemsJewelry, Furs, Cameras, Musical Instruments, Silverware, Fine arts,Postage Stamps, Rare and Current coins

The coverage C special limits do not apply to scheduled items

The section 1 deductible does not apply to scheduled items

Newly acquired property is covered for 30 Days for 25 % of the amount

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Other Endorsements

Personal Property replacement cost loss settlement

Most HO policies settles claims on Coverage C using ACV method

Under this endorsement, the insurer will pay the least of

Replacement cost at the time of loss, without deduction for depreciation

Full cost of repair at the time of loss

Limit of liability that applies to coverage C

Any applicable special limits of liability stated in the policy

Limit of liability for loss that applies to any item separately described andspecifically insured under the policy

Losses that are more than $500, the insured must repair or replace the

lost or damaged items before the insurer will pay the replacement cost

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Other Endorsements

Personal Injury Increases the liability coverage of HO policy

False arrest, detention, imprisonment

Malicious prosecution

Invasion of Privacy

Libel or slanderHome Business Insurance Coverage (HOMEBIZ)

The business must be owned by Insured or a business entity comprisedonly the insured and resident relatives

The premises must be identified on declaration page

The premises must be used primarily for residence

It can have up to three employees

Cannot involve in manufacturing, sale or distribution of food products

Cannot involve in manufacturing, sale or distribution of personal careproducts

It cannot have gross annual value receipts exceeding $250,000

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Other Endorsements

Earthquake

Ordinance or law Increased amount of coverage

Water backup or sump discharge or overflow Endorsement

Loss Assessment Coverage

Additional Residence rented to others 1,2,3,4 families EndorsementCredit card, Electronic Fund Transfer or Access Device, Forgery and

Counterfeit Money Coverage Increased Limit Endorsement

Limited Fungi, Wet ot Dry Rot, or Bacteria Coverage Endorsement