Dwelling Forms
This section is devoted to insurance covering personal risks. It
addresses personal property that is owned and/or used by individuals in
their lives as private citizens as opposed to their business or
professional lives. It takes in private residences owned by or occupied
by individuals, as well as the contents (household goods) of such
residences, and the household property of individuals who occupy
apartments, or of tenants in private residences.
While most homes are insured under one of the Homeowners forms
discussed in the first part of this section, a second program, the Dwelling
program, offers a coverage alternative.
Eligibility under the Dwelling program is broader than the Homeowners
program. Where the latter is generally open only to owner-occupied one
through four-family private dwellings, the Dwelling program, in most
states, is open to one- to four-family dwellings used primarily for dwelling
purposes, whether occupied by the owner or not.
Furthermore, the Dwelling program accepts mobile and trailer homes that
remain at the site stipulated in the policy throughout the policy term. It can
also be written for dwellings in the course of construction.
The minimum policy amounts written under the Homeowners program are
often much higher than those required under the Dwelling program, and
the latter program often provides the only economical way to insure low-
valued residences.
Homeowners Package Policies
While there are several independent filings of homeowners programs,
most of the package policies for homeowners are written under a
program first introduced by the Insurance Services Office (ISO) in the
various states, in 1984. The initial ISO program was updated to the HO-91
version and recently to the HO 2000 program. The latest version of
these forms will be discussed first, to be followed by the Dwelling forms.
TEXAS-Special Homeowners forms are in use in this state.
There are six forms under which insurance can be purchased in the
Homeowners program. These differ primarily in the nature of the perils
which are assumed under the form, and in some instances, in the amount
of coverage available on some of these perils.
In addition to the classes of home ownership listed, certain insureds are
eligible for coverage under the Homeowners policy:
Individuals who are living in a residence which they are purchasing
under an installment sales contract;
Individuals who own a home jointly with owner/occupants;
Individuals who are parties to a life estate arrangement;
(Via special endorsement) Individuals who are parties to a trust
agreement.
All forms incorporate liability insurance with a limit of $100,000 (which
may be increased for an additional premium). The provisions and
conditions of the liability insurance (to be discussed later) are identical in
all forms.
The Homeowners forms are:
Homeowners Form
One of these forms is attached to the Homeowners policy jacket to affect
the coverage which the insured elects to carry. All of the forms are
identical in structure, except for the HO 4 and HO 6, written for tenants
of rented property or condominium owners and which do not cover
dwellings or other structures related to dwellings.
The basic structure of the policies is as follows:
Section I-Coverage
A-Applies to the dwelling.
B-Applies to other structures on the premises.
C-Applies to unscheduled personal property.
D-Applies to loss of use.
Section II-Coverage
E-Applies to Personal Liability.
F-Applies to Medical Payments to Others.
This basic structure may be modified by endorsement to add special
conditions or exclusions and special classes of property such as
jewelry, furs, etc.
Eligibility-Forms 2, 3, 5 and 8 are available to owner-occupied one
through four-family dwellings with no more than two boarders or
roomers per family.
Incidental occupancies for office, professional, private school or studio
use are permitted in the dwelling or related structure as long as no other
business is conducted on the premises. A private garage rented out (for
use as a garage) is not considered a business use.
Exceptions are made for certain situations in which a dwelling is not
occupied by its legal owner. An example is a titleholder who retains title
to the property until the new occupant can arrange for a mortgage. The
occupants renting the premises with a contract to buy the home are the
named insureds; the titleholder is an additional insured with respect to the
dwelling, other structures and the liability arising from the ownership of
the described property.
Owner occupants of a two- through four-family dwelling may be insured
under the Homeowners policy; however, only one is the named insured.
The other occupants are additional insureds with respect to the building,
other structures and liability. The other occupants would have no
insurance under the policy on his or her personal property, which should
be written under a separate policy.
A joint owner who is not occupying the dwelling may be named as an
additional insured for the dwelling, other structures and liability
coverages related to the described dwelling.
Secondary dwellings may be insured under homeowners forms even
though they are not occupied on a year-round basis.
When mortgage money is tight, many people purchase homes under
contract, and pay installments to the owner (similar to rents) until they
acquire the title. The contract purchaser is usually required to carry
insurance on the property and may obtain a homeowners policy, in
which he is named as the insured. The title holder is designated as an
additional insured with respect to the dwelling and accompanying private
structures.
Occupants of a dwelling under a Life Estate are also eligible for a
homeowners policy.
Occupants of a dwelling under a Trust Agreement are also eligible for a
homeowners policy if the arrangement is reflected in an endorsement.
Finally, a homeowners policy may also be written to cover a dwelling in
the course of construction.
As indicated, the HO 4 is intended for insuring the personal property and
liability exposures of persons residing in apartments, rented dwellings
and in mobile homes, while the HO 6 is designed for condominium unit
owners and cooperative apartment owners for their personal property
and liability exposures.
Cooperative apartment owners do not, strictly speaking, own the
apartment they occupy. They are stockholders of the building and
occupy their unit under the terms of a proprietary lease. The building is
insured by the corporation or condo association in the name of the
organization. As a consequence, the building is insured under a
commercial property policy.
The tenant-stockholder can cover his or her personal property, including
any improvements and betterments, under an HO 4 (like any tenant of an
apartment building) or under an HO 6.
This section is devoted to insurance covering personal risks. It
addresses personal property that is owned and/or used by individuals in
their lives as private citizens as opposed to their business or
professional lives. It takes in private residences owned by or occupied
by individuals, as well as the contents (household goods) of such
residences, and the household property of individuals who occupy
apartments, or of tenants in private residences.
While most homes are insured under one of the Homeowners forms
discussed in the first part of this section, a second program, the Dwelling
program, offers a coverage alternative.
Eligibility under the Dwelling program is broader than the Homeowners
program. Where the latter is generally open only to owner-occupied one
through four-family private dwellings, the Dwelling program, in most
states, is open to one- to four-family dwellings used primarily for dwelling
purposes, whether occupied by the owner or not.
Furthermore, the Dwelling program accepts mobile and trailer homes that
remain at the site stipulated in the policy throughout the policy term. It can
also be written for dwellings in the course of construction.
The minimum policy amounts written under the Homeowners program are
often much higher than those required under the Dwelling program, and
the latter program often provides the only economical way to insure low-
valued residences.
Homeowners Package Policies
While there are several independent filings of homeowners programs,
most of the package policies for homeowners are written under a
program first introduced by the Insurance Services Office (ISO) in the
various states, in 1984. The initial ISO program was updated to the HO-91
version and recently to the HO 2000 program. The latest version of
these forms will be discussed first, to be followed by the Dwelling forms.
TEXAS-Special Homeowners forms are in use in this state.
There are six forms under which insurance can be purchased in the
Homeowners program. These differ primarily in the nature of the perils
which are assumed under the form, and in some instances, in the amount
of coverage available on some of these perils.
In addition to the classes of home ownership listed, certain insureds are
eligible for coverage under the Homeowners policy:
Individuals who are living in a residence which they are purchasing
under an installment sales contract;
Individuals who own a home jointly with owner/occupants;
Individuals who are parties to a life estate arrangement;
(Via special endorsement) Individuals who are parties to a trust
agreement.
All forms incorporate liability insurance with a limit of $100,000 (which
may be increased for an additional premium). The provisions and
conditions of the liability insurance (to be discussed later) are identical in
all forms.
The Homeowners forms are:
Homeowners Form
 | 8 Modified Coverage Form (HO 8) | |
| 2 Broad Form (HO 2) | |
| 3 Special Form (HO 3) | |
| 4 Tenants Broad Form (HO 4) | |
| 5 Replacement Cost Form (HO 5) | |
| 6 Condominium Unit owners and Cooperative Owners Form (HO | |
| 6) |
One of these forms is attached to the Homeowners policy jacket to affect
the coverage which the insured elects to carry. All of the forms are
identical in structure, except for the HO 4 and HO 6, written for tenants
of rented property or condominium owners and which do not cover
dwellings or other structures related to dwellings.
The basic structure of the policies is as follows:
Section I-Coverage
A-Applies to the dwelling.
B-Applies to other structures on the premises.
C-Applies to unscheduled personal property.
D-Applies to loss of use.
Section II-Coverage
E-Applies to Personal Liability.
F-Applies to Medical Payments to Others.
This basic structure may be modified by endorsement to add special
conditions or exclusions and special classes of property such as
jewelry, furs, etc.
Eligibility-Forms 2, 3, 5 and 8 are available to owner-occupied one
through four-family dwellings with no more than two boarders or
roomers per family.
Incidental occupancies for office, professional, private school or studio
use are permitted in the dwelling or related structure as long as no other
business is conducted on the premises. A private garage rented out (for
use as a garage) is not considered a business use.
Exceptions are made for certain situations in which a dwelling is not
occupied by its legal owner. An example is a titleholder who retains title
to the property until the new occupant can arrange for a mortgage. The
occupants renting the premises with a contract to buy the home are the
named insureds; the titleholder is an additional insured with respect to the
dwelling, other structures and the liability arising from the ownership of
the described property.
Owner occupants of a two- through four-family dwelling may be insured
under the Homeowners policy; however, only one is the named insured.
The other occupants are additional insureds with respect to the building,
other structures and liability. The other occupants would have no
insurance under the policy on his or her personal property, which should
be written under a separate policy.
A joint owner who is not occupying the dwelling may be named as an
additional insured for the dwelling, other structures and liability
coverages related to the described dwelling.
Secondary dwellings may be insured under homeowners forms even
though they are not occupied on a year-round basis.
When mortgage money is tight, many people purchase homes under
contract, and pay installments to the owner (similar to rents) until they
acquire the title. The contract purchaser is usually required to carry
insurance on the property and may obtain a homeowners policy, in
which he is named as the insured. The title holder is designated as an
additional insured with respect to the dwelling and accompanying private
structures.
Occupants of a dwelling under a Life Estate are also eligible for a
homeowners policy.
Occupants of a dwelling under a Trust Agreement are also eligible for a
homeowners policy if the arrangement is reflected in an endorsement.
Finally, a homeowners policy may also be written to cover a dwelling in
the course of construction.
As indicated, the HO 4 is intended for insuring the personal property and
liability exposures of persons residing in apartments, rented dwellings
and in mobile homes, while the HO 6 is designed for condominium unit
owners and cooperative apartment owners for their personal property
and liability exposures.
Cooperative apartment owners do not, strictly speaking, own the
apartment they occupy. They are stockholders of the building and
occupy their unit under the terms of a proprietary lease. The building is
insured by the corporation or condo association in the name of the
organization. As a consequence, the building is insured under a
commercial property policy.
The tenant-stockholder can cover his or her personal property, including
any improvements and betterments, under an HO 4 (like any tenant of an
apartment building) or under an HO 6.
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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.