Chapter 5a Notes – Homeowners Property Coverage

What does the Insurance Services Office (ISO) do regarding homeowners insurance?

The ISO created policy forms designed to meet the risk management needs of individuals and families.

Who is eligible for coverage under the Homeowners insurance program?

Individuals and families who own private homes, rent a residence, or own private condominiums used for residential purposes.

What type of coverage does HO-2 provide?

Named perils coverage for owner-occupants for dwellings, other structures, and personal property.

What is the difference between HO-3 and HO-2 forms?

HO-3 provides open perils coverage, meaning all causes of loss are covered unless excluded, while HO-2 provides named perils coverage.

What coverage does HO-4 offer?

Contents Broad Form, providing tenants coverage for personal property on a named perils basis.

What is the main feature of the HO-5 form?

Comprehensive Form that provides owner-occupants open perils coverage that is broader than HO-3.

What is the unique aspect of the HO-6 form?

It provides coverage for owners of condominiums or co-operative apartments on a named perils basis, regardless of occupancy.

What does the HO-8 form provide coverage for?

Modified Coverage Form that offers limited named perils coverage for owner-occupants who may not meet insurer standards for other forms.

What are the main components of the HO-3 structure?

Declarations, Agreement and Definitions, Section I – Property Coverages, Section II – Liability Coverages, and Endorsements.

What is covered under Section I of the HO-3 policy?

It specifies the property covered, the perils covered, and any exclusions or conditions affecting coverage.

What does the declarations section provide?

Essential information about the insured, property covered, and the limits of coverage.

What are the two liability coverages in Section II of the HO-3 policy?

Coverage E – Personal Liability and Coverage F – Medical Payments to Others.

What influences the base premium for homeowners insurance?

Dwelling location, construction factors, coverage amount, the policy form selected, and public protection class.

What might lead to adjustments in the base premium for homeowners insurance?

Adjustments are made based on endorsements, deductible changes, and unusual construction types.

What are the later adjustments made to the premium?

Final adjustments are made based on claim history, insurance score, and package policy credits.