HO Section II Cram Sheet

Two major coverages in Section II

Liability coverage:

Coverage E - BI and PD liability coverage

Coverage F - medical payments to others

Coverage E conditions

Insured must be at fault, but coverage is effective anywhere in the world

Coverage F conditions

• Pays to others only, NOT the insured

• Pays regardless of fault and on or off premises

• Covers domestic employees

• Pays necessary medical expenses up to 3 years after loss

Liability exclusions (1-5)

1. Liability for injury or damage expected or intended by the insured

2. Liability assumed through a contract

3. BI or PD arising out of business pursuits or failure to render professional services

4. BI or PD arising out of the rental of any part of the premises (excludes rental residence use)

5. Liability arising out of ownership, maintenance, use, loading/unloading of aircraft, watercraft, and motor vehicles

Liability exclusions 6-8

6. Liability arising out of war and warlike acts

7. Liability arising out of the transmission of a communicable disease by an insured

8. Liability arising out of sexual molestation, corporal punishment, physical/mental abuse, and use/sale/manufacture of controlled substances

What watercraft is covered under section II

1. Any watercraft not owned or rented by the insured

2. Watercraft owned or not owned by the insured with the following specifications:

   1. Sailboats less then 26 ft

   2. Boats with inboard motors of 50 horsepower or less

   3. Boats with outboard motors of 25 horsepower or less

Additional coverages automatically included under section 2 (7 of them)

1. Defense costs

2. Court-ordered bonds

3. Post-judgement interest

4. Reasonable expenses (additional expenses and loss of earnings)

5. First aid expenses

6. Damage to property of others ($1000 per occurrence, regardless of liability)

7. Loss assessment

Watercraft endorsement

1. Boats with outboard motors of 25 horsepower or more

2. Boats with inboard motors of 50 horsepower or more

3. Boats in storage

4. Sailboats greater than 26 ft

Business pursuits endorsement

Provides liability coverage for business conducted away from the residence property, but only if in employment to someone else

Personal Injury Endorsement

Liability for nonbodily injury claims including libel, sander, false arrest, invasion of privacy, or malicious prosecution

Permitted incident occupancies endorsement

Provides liability coverage for home-based businesses

*provides both liability and medical coverage, but only for business activities listed in endorsement

Home day care endorsement

Liability and medical coverage with premium based on number of children

Sexual molestation or corporal punishment excluded

Limited fungi, wet or dry rot, or bacteria endorsement

Provides liability coverage for all damages arising directly or indirectly out of actual, alleged, or threatened contact with mold