RMI 3011 Chapter 16 Homeowners Insurance Section I Homeowners Insurance Eligible Dwellings 1 2 3 4 family dwellings used for private residential purposes Separate forms are written for renters and boarders HO 2 Broad Form Named perils policy that insures dwelling other structures and personal property from listed perils HO 3 Special Form insures dwelling and other structures against direct physical loss to property HO 4 Contents Broad Form Designed for tenants who rent apartments houses or rooms Covers tenants property against loss and also provides personal liability insurance Personal property covered for same perils as HO2 o 10 of insurance can be applied to alterations made by insured o Also covers any additional living expenses HO 5 Comprehensive Form insures dwelling other structures and personal property against direct physical loss to property All losses covered except those specifically excluded Insures personal property for all losses except those specifically excluded HO 6 Unit Owners Form designed for owners of condominium units and cooperative apartments Covers personal property for same named perils as HO2 plus 5 000 minimum on certain property such as appliances HO 8 Modified Coverage Form covers losses to dwelling and other structures based on repair cost Designed for older homes whose replacement costs greatly exceed market value ANALYSIS OF HO3 Special Form Persons Insured named insured and relatives who live in house other persons under age 21 who are in care of insured full time students away from home living under insured any person legally responsible for covered animals watercraft with respect to covered motor vehicles any person who is operating when employed by insured Section I Coverages A Dwelling dwelling plus any structures attached i e garage specifically excludes land B Other Structures detached garage tool shed horse shed etc amount of coverage is based on coverage A generally 10 of coverage A i e 300k of dwelling coverage then 30k of coverage on other structures Land damage excluded plus structures for business operations or structures used for business storage C Personal Property property owned used borrowed by insured guest s property can also be covered usually covered up to 50 of coverage A Personal property that is usually off premises such as being located at a vacation home is limited to 10 Doesn t apply to property moved while residence is being remodeled or repaired Property in self storage units covered up to 10 of coverage A Special Limits on Liability 200 limit on money i e coin collections 1500 limit on stamps 1500 on watercraft 1500 on jewelry furs 2500 on firearms 2500 on silverware 2500 on property used primarily for business purposes 1500 on portable electronic equipment o Because of these limits it is important to schedule these items and provide for specific insurance Property not covered articles separately insured animals birds and fish motor vehicles aircraft and parts hovercraft and parts property of other tenants business data property rented to others off premises credit cards water or steam D Loss of Use protection when residence cannot be used because of covered loss 30 of coverage A Additional living expenses increase in rental expenses to maintain family s normal standard of living Fair rental value rental value for part of premises rented to others that cannot be rented due to condition of property Prohibited use above covered if governmental authority prohibits use for certain period Additional Coverages exceeds coverage Debris Removal covered in policy with an additional 5 of coverage if cost Reasonable Repairs reasonable repairs to protect property from further loss Trees Shrubs and other Plants provided for fire lightning riot aircraft vehicle not owned by insured vandalism theft not windstorm o Maximum limit for loss is 5 of insurance that covers entire loss Fire Department Service Charge insurer will pay up to 500 Property Removal removal of property to protect from direct physical loss Credit Cards credit cards stolen or used in fraudulent manner covered up to covered for 30 days 500 Loss Assessment insurer pays up to 1000 on loss assessment charged by corporation for property collectively owned i e homeowners charge Collapse covered only If loss caused by perils insured in coverage C hidden decay hidden insect vermin damage weight of contents people weight of rain use of defective materials during construction remodeling Glass Safety Glazing Materials covers glass on storm door storm window or Landlord s furnishings up to 2500 on appliances etc for regularly rented Ordinance Law can apply up to 10 of coverage A on repairs ordered by new building dwelling law ordinance Grave Markers up to 5000 on perils under coverage C Section I Perils insured against A B Dwelling and Other Structures Insured Against everything but excluded losses Excluded coverage o Collapse specifically excluded except those specified in additional o Freezing freezing of pipes etc not covered unless insured took care to maintain heat of building o Fences patio swimming pool not covered if damage is caused by freezing or thawing or from pressure weight of ice o Dwelling Under construction theft to dwelling under construction or materials of construction not covered until dwelling is complete and occupied o Vandalism not covered if dwelling is vacant for more than 60 days prior o Mold fungus dry rot not covered unless undetected and caused by accidental leakage from plumbing a c etc to loss o Other Wear and tear Mechanical breakdown inherent vice Smog rust corrosion Smoke from agricultural or industrial operations Pollutants unless specifically covered under coverage C peril Settling cracking expansion etc of pavement Animals birds insects Nesting or infestation of animals C Personal Property is covered on a named perils basis Fire lightning must be proximate cause of the loss must be a hostile fire Windstorm Hail external damage covered and any damage inside house covered if caused by opening created by windstorm boats only covered if inside fully enclosed building Explosion broad coverage applied for any type of explosion Riot Aircraft Vehicles Smoke Vandalism Theft excluded if by insured in or to a dwelling under construction or from part of premises rented to another party o Property at separate residence only insured if is used as a temporary residence o Watercraft excluded if away from premises o Trailers away from premises not covered
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