Homeowners Forms
Homeowners 5 - Comprehensive Form
CAUSES OF LOSS COVERED
The Home Owners 5 policy is identical with the Homeowners 3-Special
Form that is endorsed to apply broader perils for personal properties.
This form was introduced in the Insurance Services Offices HO 2000
edition of their homeowners program. Ironically it is referred to as
"Comprehensive." This term had once been commonly used in both
homeowner and personal auto policies, but was later abandoned
because it often created misguided expectations of coverage among
insurance consumers.
The standard Homeowners 5 policy covers the residence, other
structures and personal properties for damages or destructions caused
by any cause of direct, physical loss that is not specifically excluded.
CAUSES OF LOSS NOT COVERED
The Homeowners 5 form, under the coverage parts for the dwelling,
other structures and personal property, excludes coverage for damages
caused by the following:
Further, there are additional exclusions which apply separately topersonal properties. The application of coverage, as modified by the
exclusions and exceptions, raises questions about the title
(comprehensive) for this new homeowners form.
Homeowners 6 - Condominium Unit Owners Form
Cooperative apartment ownership has been known in this country for
many years. Because of the income tax advantage it offers, this type of
ownership is widely spread. Cooperative unit owners commonly speak
of their "owning" their apartments; but, technically, they are tenants
under a proprietary lease granted to them by virtue of their stock
ownership in the corporation which owns and operates the building.
The owner of stock in a cooperative building insures his personal
property in much the same way as any other tenants. The corporation
requires insurance on the building-liability, workers compensation and
allied lines-which does not differ substantially from the coverages an
individual owner would purchase.
The laws in most states provide for a form of ownership in which each
owner actually owns the unit he occupies in absolute fee simple. With a
condominium, the unit-owner has exclusive ownership of the condo unit,
like the owner of a house. The unit owner shares with all other
unitowners the "common areas"- the land the building sits on, hallways,
entrances, exits, elevators, passageways, fire escapes, heat boiler, light
and power facilities, yard and roof facilities, water supply, etc. Each
unit, together with its common interests, constitutes real property. A
condominium does not have to be an apartment building; it can be a
building of almost every description, e.g., office, mercantile, and shopping
centers.
The owner of a unit in a condominium is not involved in a common
mortgage, as in the case a cooperative apartment owner; the condo
owner arranges his own financing when buying into the condo project,
or he may own the unit outright.
While there are some differences among the various states in the laws
governing condominiums, they all provide that the payouts from
insurance be used as promptly as possible to make repairs or
reconstruction after a covered loss. Such repairs are to be overseen by
the board of managers, or other individuals designated as insurance
trustee, except that in most jurisdictions, it is further stipulated that, when
the damage exceeds 75% of the property and at least 75% of the unit
owners decide not to have the repairs made, the property shall become
subject to an action for partition at the suit of any unit owner. The
proceeds of the sale of the property are divided among the unit owners
in proportion to their respective common interests in the condo project.
The condominium association carries insurance on the building structure
and the property in the building which is owned by the unitowners in
common. Under the terms of the condominium by-laws, the condo board
of managers or other agent is designated to act as insurance trustee for
the unit-owners collectively. Any loss to the building property or the
personal property pertaining to the common area is payable to such
trustee on behalf of all the unit owners. Of course, each owner is free
to insure his own unit as he sees fit. The Homeowners 6 - Condominium
Unitowners Form, is available to cover the individual unit-owners, and the
stockholder-occupant of a cooperative apartment unit.
CAUSES OF LOSS COVERED
The HO6 – Condominium Unitowners Policy is written to cover the perils
afforded under the Homeowners Form 2. It may also be endorsed to
cover on an "open perils" basis similar to that of the Homeowners Form
3.
Unitowner's Additions and Alterations - The HO6 covers fixtures,
installations or additions comprising part of the building within the
unfinished interior surfaces of the perimeter walls, floors and ceilings of
individual condominium units. The coverage applies to original
installations or replacements thereof in accordance with the original
condominium building plans and specifications, or improvements installed
at the expense of the unit-owner.
Unlike the Homeowners 4, the policy provides for coverage on property
on a replacement cost basis, provided such repair or replacement is
made within a reasonable time after the incident. Coverage may be
written on a named-perils basis or on an all-risk basis.
It should be noted that if the repairs or replacement are not made within a
reasonable time after the loss, the insurer’s liability is limited to the actual
cash value of the loss or damage, less any amount salvaged in the
recovery for the benefit of the insured for such loss from any insurance
covering the interest of the unit owners collectively.
The coverage on fixtures, alterations and additions under the Home
Owners 6 is limited to $1,000, regardless of the insurance amount
carried on the property itself. This is additional insurance over and
above the amount of the policy. (This portion differs from the HO4,
which allows up to 10% of the amount of the basic policy to cover such
property.) The amount of coverage may be increased in additional units
of $1,000 by way of an endorsement, for an additional premium.
Whether the amount of the basic insurance offered under the
Unitowners Additions and Alterations coverage ($1,000) is sufficient will
depend on the insurance carried by the condominium association.
If the condo association policy covers only the "bare walls" of the
building, the unit owners will need to increase the basic coverage in their
HO6 under this section to cover all interior walls; the paint and wall
paper, wall paneling, plumbing, wiring; carpeting, tile, floors, stairs
between the lowest floor and the highest ceiling, etc.
The amount of increase under the Unitowners Addition and Alteration
coverage will differ if the association insures the entire building structure
as originally built but not any improvements and betterments made by
succeeding unitowners, etc.
Debris Removal - The policy covers damage to insured property by the
fall of an uninsured tree from a covered peril in the policy.
Unitowner's Rental to Others - For an additional charge of 25% of the
basic premium, the policy may be amended to cover when the
condominium apartment is rented by its owner to others.
Homeowners 5 - Comprehensive Form
CAUSES OF LOSS COVERED
The Home Owners 5 policy is identical with the Homeowners 3-Special
Form that is endorsed to apply broader perils for personal properties.
This form was introduced in the Insurance Services Offices HO 2000
edition of their homeowners program. Ironically it is referred to as
"Comprehensive." This term had once been commonly used in both
homeowner and personal auto policies, but was later abandoned
because it often created misguided expectations of coverage among
insurance consumers.
The standard Homeowners 5 policy covers the residence, other
structures and personal properties for damages or destructions caused
by any cause of direct, physical loss that is not specifically excluded.
CAUSES OF LOSS NOT COVERED
The Homeowners 5 form, under the coverage parts for the dwelling,
other structures and personal property, excludes coverage for damages
caused by the following:
 | Freezing, although exceptions are made if a sprinkler system is | |
| involved and whether the home is heated and/or water is drained to prevent loss; | ||
| Weather Conditions that damage certain property including | |
| fences, walkways, patios, decks, foundations, and other permanent structures not classified as either dwelling or other structures; | ||
| Theft involving a dwelling that's being built, including supplies and | |
| materials; | ||
| Mold, fungus or rotting; | |
| Wear and tear, breakdown, inherent flaws, pollution, corrosion, | |
| deterioration, settling/expansion of certain classes of property, birds, pets and pests; | ||
| Overflow or back-up of water or waterborne materials (with | |
| exceptions); | ||
| Vandalism (with an exception regarding a home being vacant or | |
| unoccupied); | ||
| Collapse (with some rare exceptions); |
Further, there are additional exclusions which apply separately to
exclusions and exceptions, raises questions about the title
(comprehensive) for this new homeowners form.
Homeowners 6 - Condominium Unit Owners Form
Cooperative apartment ownership has been known in this country for
many years. Because of the income tax advantage it offers, this type of
ownership is widely spread. Cooperative unit owners commonly speak
of their "owning" their apartments; but, technically, they are tenants
under a proprietary lease granted to them by virtue of their stock
ownership in the corporation which owns and operates the building.
The owner of stock in a cooperative building insures his personal
property in much the same way as any other tenants. The corporation
requires insurance on the building-liability, workers compensation and
allied lines-which does not differ substantially from the coverages an
individual owner would purchase.
The laws in most states provide for a form of ownership in which each
owner actually owns the unit he occupies in absolute fee simple. With a
condominium, the unit-owner has exclusive ownership of the condo unit,
like the owner of a house. The unit owner shares with all other
unitowners the "common areas"- the land the building sits on, hallways,
entrances, exits, elevators, passageways, fire escapes, heat boiler, light
and power facilities, yard and roof facilities, water supply, etc. Each
unit, together with its common interests, constitutes real property. A
condominium does not have to be an apartment building; it can be a
building of almost every description, e.g., office, mercantile, and shopping
centers.
The owner of a unit in a condominium is not involved in a common
mortgage, as in the case a cooperative apartment owner; the condo
owner arranges his own financing when buying into the condo project,
or he may own the unit outright.
While there are some differences among the various states in the laws
governing condominiums, they all provide that the payouts from
insurance be used as promptly as possible to make repairs or
reconstruction after a covered loss. Such repairs are to be overseen by
the board of managers, or other individuals designated as insurance
trustee, except that in most jurisdictions, it is further stipulated that, when
the damage exceeds 75% of the property and at least 75% of the unit
owners decide not to have the repairs made, the property shall become
subject to an action for partition at the suit of any unit owner. The
proceeds of the sale of the property are divided among the unit owners
in proportion to their respective common interests in the condo project.
The condominium association carries insurance on the building structure
and the property in the building which is owned by the unitowners in
common. Under the terms of the condominium by-laws, the condo board
of managers or other agent is designated to act as insurance trustee for
the unit-owners collectively. Any loss to the building property or the
personal property pertaining to the common area is payable to such
trustee on behalf of all the unit owners. Of course, each owner is free
to insure his own unit as he sees fit. The Homeowners 6 - Condominium
Unitowners Form, is available to cover the individual unit-owners, and the
stockholder-occupant of a cooperative apartment unit.
CAUSES OF LOSS COVERED
The HO6 – Condominium Unitowners Policy is written to cover the perils
afforded under the Homeowners Form 2. It may also be endorsed to
cover on an "open perils" basis similar to that of the Homeowners Form
3.
Unitowner's Additions and Alterations - The HO6 covers fixtures,
installations or additions comprising part of the building within the
unfinished interior surfaces of the perimeter walls, floors and ceilings of
individual condominium units. The coverage applies to original
installations or replacements thereof in accordance with the original
condominium building plans and specifications, or improvements installed
at the expense of the unit-owner.
Unlike the Homeowners 4, the policy provides for coverage on property
on a replacement cost basis, provided such repair or replacement is
made within a reasonable time after the incident. Coverage may be
written on a named-perils basis or on an all-risk basis.
It should be noted that if the repairs or replacement are not made within a
reasonable time after the loss, the insurer’s liability is limited to the actual
cash value of the loss or damage, less any amount salvaged in the
recovery for the benefit of the insured for such loss from any insurance
covering the interest of the unit owners collectively.
The coverage on fixtures, alterations and additions under the Home
Owners 6 is limited to $1,000, regardless of the insurance amount
carried on the property itself. This is additional insurance over and
above the amount of the policy. (This portion differs from the HO4,
which allows up to 10% of the amount of the basic policy to cover such
property.) The amount of coverage may be increased in additional units
of $1,000 by way of an endorsement, for an additional premium.
Whether the amount of the basic insurance offered under the
Unitowners Additions and Alterations coverage ($1,000) is sufficient will
depend on the insurance carried by the condominium association.
If the condo association policy covers only the "bare walls" of the
building, the unit owners will need to increase the basic coverage in their
HO6 under this section to cover all interior walls; the paint and wall
paper, wall paneling, plumbing, wiring; carpeting, tile, floors, stairs
between the lowest floor and the highest ceiling, etc.
The amount of increase under the Unitowners Addition and Alteration
coverage will differ if the association insures the entire building structure
as originally built but not any improvements and betterments made by
succeeding unitowners, etc.
Debris Removal - The policy covers damage to insured property by the
fall of an uninsured tree from a covered peril in the policy.
Unitowner's Rental to Others - For an additional charge of 25% of the
basic premium, the policy may be amended to cover when the
condominium apartment is rented by its owner to others.
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MY Insurance Agency
The materials on this website are meant to
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.
be informative in nature. Due to the ever
changing and varying state laws, and the fact
some insurers offer coverage in slightly
different forms from the Insurance Services
Office (ISO) standard forms, we cannot
guarantee the accuracy of the materials on
this page.