INS 51 - Chapter 6b Notes – Homeowners Liability Coverage

Benefit of exclusions in HO-3 Coverage

Help limit the scope of coverage and reduce premiums.

Motor Vehicle Exclusions

Apply to losses from motor vehicles, watercraft, aircraft, and hovercraft.

Burden of Proof in HO-2

The insured must prove coverage as it is on a 'named perils' basis.

HO-5 Coverage

Provides the broadest property coverage, especially for Coverage C.

HO-4 Coverage Purpose

Designed for renters, it does not include Coverages A and B.

What does HO-6 cover?

Covers exposures faced by owners of condominiums or co-op units.

Moral Hazard in HO-8

Insurer's payment is capped to prevent homeowners from preferring insurance over repairs.

HO-2 vs. HO-3

HO-2 has lower premiums and covers on a 'named perils' basis.

What does 'open perils' mean in HO-3?

Coverage assumes losses will be covered unless specifically excluded.

Bodily injury exclusions

Include intentional harm, business activities, professional services, and war.