Basic Form
- Standard coverage form where the perils covered are specifically named
- Very basic coverage for the perils of fire, lightning, and internal explosion only
Broad Form
- Standard coverage form where the perils covered are specially named.
- Perils covered are broader than those covered in the basic form
Special Form
Standard coverage form that covers all perils other than those specially excluded
Dwelling Policy (DP Forms)
Provides insurance coverage for the structure of your home and its contents, personal property
What types of property are eligible to be insured on a Dwelling Policy?
1. Single-family dwelling used as a residence
2. A dwelling with 1 to 4 single family units used as residences such as apartments or townhouses
3. Rental property limited to no more than 5 borders or tenants
4. Mobile home if it is secured to the ground a
What are the three Dwelling Policy forms?
1. DP-1 - Basic form
2. DP-2 - Broad form
3. DP-3 - Special form
DP-1 - Basic Form
1. Named peril form, only those perils named on the policy are covered
2. Only covers three perils - fire, lightning, and internal explosion
3. Provides for:
- Coverage A (Dwelling)
- Coverage B (Other Structures)
- Coverage C (Personal Property)
- Covera
DP-2 - Broad Form
1. Broader coverage than the DP-1
2. Named peril form, only those perils named on the policy are covered
3. Provides for:
- Coverage A (Dwelling)
- Coverage B (Other Structures)
- Coverage C (Personal Property)
- Coverage D (Fair Rental Value)
- Coverage
DP-3 - Special Form
1. Special form also known as all risk form
2. Open peril form, the dwelling and other structures are covered for all perils except those that are specially excluded in the exclusions section
3. Provides for:
- Coverage A (Dwelling)
- Coverage B (Other St
What are the coverages under the Dwelling Policies?
1. Coverage A (Dwelling)
2. Coverage B (Other Structures)
3. Coverage C (Personal Property)
4. Coverage D (Fair Rental Value)
5. Coverage E (Additional Living Expenses)
Coverage A - Dwelling (DP)
1. Dwelling
2. Structures attached to the dwelling such as a garage
3. Materials and supplies for use in the construction, alteration, or repair of the dwelling or other structures on this location
4. Building equipment, such as air conditioning units, an
Coverage B - Other structures (DP)
1. Other structures on the property separated from the dwelling by a clear space or connected to the dwelling by only a fence, utility line or similar connection (carport, fences, or sheds)
2. Does not cover structures that are used in whole or part for c
Coverage C - Personal Property (DP)
1. Covers the personal property or contents usual to the occupancy as a dwelling and owned and used by the insured or a family member
2. Does not cover animals, birds, or fish, aircraft, motor vehicles, boats (other than row boats or canoes), or money, cu
Coverage D - Fair Rental Value (DP)
1. If the dwelling is damaged as a result of a peril covered by the policy and the property is rented, the loss of rental income to the insured is covered
2. An indirect or consequential loss
3. Reimburse up to two weeks of rental income
4. Up to 20% of C
Coverage E - Additional Living Expenses (DP)
1. Pays for additional living expenses the insured incurs as a result of a covered loss (hotel or apartment costs, dining, laundry and transportation expenses)
2. Available under DP-2 and DP-3 but not DP-1
3. Up to 20% of Coverage A
Other coverages (DP)
- For DP-1,2,3
1. Debris removal
2. Property removed
3. Reasonable repairs
4. Fire department service charge - Up to $500
5. Improvements, alterations and additions
- For DP-2,3
1. Trees, shrubs and other plants
- Covers from fire, lightning, explosion, r
Exclusions (DP)
1. Ordinance or law - Loss by enforcement of a law or ordinance that regulates the use, construction, repair or demolition of the structure
- Exclusion for only DP-1
2. Earth movement - Mudslides, sinkholes, and subsidence
- Will cover due to volcanic eru
Endorsements (DP)
1. Broad theft coverage - coverage for theft of personal property related to the dwelling policy
- Vandalism and malicious mischief is not covered if vacant more than 60 consecutive days
- Covers personal property both on- or off-premises
- Required to no
Homeowners (HO forms)
- Multiline policy because it provides both property and liability coverages in a single policy
- Possible gaps and/or duplication of coverage can be avoided
- Reduces their administrative effort and costs and can pass these savings
- Divide the coverages
What is considered eligible for a homeowners policy?
1. Named insured must be an owner-occupant of the dwelling or condominium or a renter who maintains a residential company
2. The home cannot have more than four families
3. The dwelling must be used exclusively as a residence, except for certain incidenta
What are the definitions of a homeowners policy?
1. Named insured - person named on the declaration page and their spouse
2. Insured - named inusred plus:
- Any relatives living in the named insured's household who are related by blood or adoption, including children, grandparents, uncles, aunts, and so
What are the two sections for a homeowners policy?
1. Section I: Property - coverage for homeowner's or renter's property
2. Section II: Liability - coverage for homeowner's (the insured's) personal liability to others bodily injury or property damage
HO-0 - Dwelling standard fire form
- Provide coverage on a home against fire, smoke, windstorm, hail, lightning, explosion, vehicles, and civil unrest
- It does not cover the insured's personal property, personal liability, or medical payments
- May be used by a mortgage lender to cover pr
HO-1 Basic form
- Has been discontinued in most states because homeowners look for the broader coverage in the other homeowners forms
- Provides named peril coverage of: fire, lightning, windstorm, hail, vandalism and malicious mischief, theft, damage from vehicles and a
HO-2 Broad form
- Named peril form, only those perils named on the policy are covered
- Provides for Coverage A, B, C, D
-
Claims are paid based on replacement cost for the dwelling and other structures and based on actual cash value (ACV) for the contents (personal prop
HO-3 Special form
- Open peril form, the dwelling and other structures are covered for all perils except those that are specifically excluded in the exclusions section
- Personal property or contents is covered on a named peril basis
- Provides for Coverage A, B, C, D
-
Cl
HO-4 Contents broad form
- Renters or tenants/renters form
- For people who do not own their residence and are renting a property
- Provides for Coverage C and D
- Covers personal property against the same perils as the contents of the HO-2 and HO-3
-
Claims are paid based on act
HO-5 Comprehensive form
- Most comprehensive or broadest property coverage
- Dwelling and other structures and personal property are covered for all perils except those excluded
- Provides Coverage A, B, C, D
- *Claims are paid based on replacement cost for the dwelling and othe
HO-6 Unit-owners form
- People who own a condominium (their personal property and some limited coverage for the dwelling)
- Named peril form, only those perils named on the policy are covered
- Provides for Coverage A, C, D
-
Claims are paid based on replacement cost for the d
HO-8 Modified coverage form
- An owner-occupied older home whose replacement cost far exceeds the property's market value or where these are disproportionate (historic home)
- Named peril form, only those perils named on the policy are covered
- Perils covered are similar to DP-1 wi
Coverage A - Dwelling (HO)
1. Dwelling described in the declaration page
2. Structures attached to the dwelling such as a garage
3. Materials and supplies for use in the construction, alteration, or repair of the dwelling or other structures on this location
4. Building equipment,
Coverage B - Other Structures (HO)
1. Covers other structures on the property separated from the dwelling by a clear space or connected to the dwelling by only a fence, utility line or similar connection
2. Others structures used to conduct business are not covered
3. If separated property
Coverage C - Personal Property (HO)
1. Covers the personal property or contents usual to the occupancy as a dwelling and owned and used by the insured or a family member
2. Does not cover animals, birds, or fish, aircraft, motorized vehicles unless they are used to service the premises or a
Coverage D - Loss of Use (HO)
- Coverage if the residence becomes uninhabitable due to a covered direct loss
1. Additional living expense
2. Fair rental value
- Different limits of liability
1. 30% of Coverage A for HO-2, HO-3, and HO-5
2. 30% of Coverage C for HO-4
3. 50% of Coverage
Additional Living Expenses (HO)
1. Pays for additional living expenses the insured incurs as a result of a covered loss (hotel, apartment costs, dining, laundry and transportation expenses)
2. Covers an increase in living expenses over the regular household expenses
Fair Rental Value (HO)
1. The loss of rental income to the insured is covered by Coverage D while the property is repaired
2. Does not cover loss of rental income due to a cancelled lease or rental agreement
Section I Property - Additional coverages (HO)
1. Debris removal
2. Property removed
3. Reasonable repairs
4. Fire department service charge
5. Trees, shrubs, and other plants
6. Glass or safety glazing material
7. Credit Card, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit M
Section 1 Property - Exclusions (HO)
1. Ordinance or law
2. Earth movement
3. Water damage
4. Power failure
5. Neglect
6. Water and nuclear hazard
7. Intentional loss
8. Governmental action
Section II Liability Coverages
1. Coverage E - Personal Liability
2. Coverage F - Medical payment to other
Section II Liability - Additional Coverages
1. Claim expenses
2. Loss assessment
3. First aid expenses
4. Damage to property of others
Section II Liability - Exclusions
1. Both Coverage E and F
- Intentional or expected by the insured
- Out of business pursuits or failure to render professional service
- Rental of any part of the premises unless it is rented as a residence
- Out of aircraft, watercraft, or motor vehicles
Endorsements (HO)
1. Scheduled personal property
2. Personal property replacement cost
3. Other structures - increased limits
4. Permitted incidental occupancies
5. Earthquake
6. Home day care
7. Home business endorsement
8. Limited fungi, wet or dry rot, or bacteria cover
Mobile homes
1. Standalone policy or as an endorsement to a Homeowners policy
2. 40 feet or more in length and 10 feet or more in width
3. Must be mobile, but the wheels are removed
4. Securely tied down
5. Use DP-1 or HO-2 or HO-3
What are the coverages for mobile homes?
- HO-2 or HO-3
1. Section I: Property
- Coverage A: includes the mobile home, attached structures, equipment, and accessories originally built into the unit
- Coverage B: other structures, 10% of coverage A
- Coverage C: personal property, 50% of coverage
What are the requirements for a mobile home?
1. Owner-occupied
2. Insured on an actual cash value basis, not replacement cost
3. Damage to the mobile home from collision or upset while it is in transit is available as an optional coverage
What is an inland marine?
Risks that can be covered by either Ocean or Inland Marine insurance
What are the six categories?
1. Imports
2. Exports
3. Domestic shipments
4. Instrumentalities of transportation or communication
5. Personal Property Rloater risk
6. Commercial Property Floater risk
Imports and exports are eligible for Ocean Marine insurance.
What are the three commonly used personal inland marine forms?
1. Personal articles
2. Personal property
3. Personal effects
What are personal articles?
1. Jewelry
2. Furs
3. Cameras
4. Musical instruments
5. Silverware
6. Golf equipment
7. Fine art
8. Stamps
9. Coins
How are the articles valued as?
1. Actual cash value
2. Cost to repair
3. Cost to replace with a substantially similar item
4. Limit of liability in the policy
Personal property form
Provides open peril coverage for personal property, generally on a blanket basis
Personal effects form
1. Provide coverage for personal property when insured or family members are travelling
2. Open peril basis for property generally carried by tourists
3. Exclusions include: tickets, passports, currency, valuable papers, contact lenses, artificial limbs,
What is the pair and set condition?
The insurer will not reimburse the insured for the full value of a pair or set if the entire pair or set is not lost or damaged
What are the exclusions for floaters?
1. War
2. Nuclear hazard
3. Wear and tear
4. Gradual deterioration
5. Insects and vermin
Other Property Insurance
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