Dwelling Forms
FEATURES COMMON TO ALL HOMEOWNERS
FORMS
PROPERTY NOT COVERED
The policies do not cover:
CALIFORNIA-Outdoor radio and television antennas, including their lead-
in wiring, masts and towers, are not covered for the perils of windstorm and
hail.
When Premises Are Rented to Others - The policy does not cover loss by
theft to property in a portion of the premises rented to others.
HAZARDS NOT COVERED
There are considerable differences in the perils covered under the
several Homeowners policies, and some exclusions which are not
common to all the policies. Basically, all forms contain certain exclusions,
as outlined below:
War - The policy does not cover loss due to war.
Nuclear Hazard - Nuclear hazard, which is defined as any nuclear
reaction, radiation or radioactive contamination, controlled or uncontrolled
or however caused, or any consequence of these, is a peril not covered
under Section I of the policy (building coverage). An exception is made
for direct loss by fire resulting from the nuclear hazard which is covered.
Pollutant Exclusion - The policy does not cover loss from seepage,
migration or escape of pollutants unless caused by a peril insured
against under Coverage C of the policy. Also excluded is loss due to the
release, discharge or dispersal of contaminants or pollutants.
Water Damage - There is no coverage for loss caused by flood water,
surface water, waves and sprays of these. Nor is there coverage for
backup of sewers and drains and water below the ground level. Finally,
there is no coverage for damage from water borne material. However, if
fire or explosion ensues, the ensuing loss is covered. Specifically
excluded are losses due to the overflow of a sump pump.
While homeowners policies do not cover loss due to surface waters or
flood or the backing up of sewers and drains, Forms 2, 3, 4, 5 and 6 do
cover loss due to the escape of water or steam from within plumbing,
heating or air conditioning systems or from sprinkler systems or from
within a household appliance. Note that no coverage is provided for the
expense of the lost water or steam.
Excepted from the coverage are losses arising from the accidental
escape of water or steam if the insured takes no action once damage
has become evident. Also excluded is loss that occurs after the
residence has been vacant for over 30 days prior to the loss.
MARYLAND, VIRGINIA - All Homeowners policies must offer an
endorsement covering loss from the backing up of sewers and drains,
provided such loss is not caused by the negligence of the insured. The
coverage is subject to a deductible of $250.
Freezing of Plumbing Systems - All the Homeowners policies (except
HO8) exclude loss due to the freezing of plumbing systems and
appliances while the premises are vacant or unoccupied EXCEPT when
heat is maintained in the dwelling or the system is drained.
The HO 8 provides no coverage for this exposure.
Ordinance or Law - All the Homeowners policies exclude coverage for
loss necessitated by the enforcement of a local or state ordinance
regulating the construction, repair or demolition of a building or structure.
For an additional charge, coverage against these perils may be provided.
Earthquake or Earth Movement - Homeowners policies exclude loss
resulting from earth movement, including earthquake, landslide and mine
subsidence, etc. The policy does cover volcanic action above the
ground.
The policy may be extended by endorsement, upon payments of an
additional premium, to cover the perils of earthquake, earth movement,
landslide, etc.
Power Interruption - Consequential loss to property from the failure of
such equipment is excluded, unless it results from physical damage to
power, heating or cooling equipment on premises caused by an insured
peril. However, if a peril otherwise insured against ensues, the ensuing
loss would be covered.
Damage By Insured's Animals - The policy does not cover damage
caused by animals (domestic or non-domestic) owned or kept by an
insured. This exclusion does not apply to animals or pets not owned by
or kept by the insured.
Intentional Loss - Losses intended by the insured are not covered, but
this exclusion does not apply to an insured who does not participate in
the loss.
Neglect - The policy does not cover loss due to failure of the insured to
use all reasonable means to save the property at and after the time of the
loss.
Governmental Action - Loss caused due to destruction or seizure that is
ordered by public authorities is excluded except when the destruction is
ordered for creating a firebreak (against an existing fire).
FOR HOW MUCH
Deductibles - In most states, a $250 deductible is made applicable to all
perils. Higher and lower deductibles are available, with corresponding
adjustments in premium.
The deductible does not apply to Loss of Use or the Fire Department
Service Charge.
Replacement Cost Coverage - All the Homeowners policies on dwellings
(except HO8) incorporate a Replacement Cost section, applicable to
buildings and outbuildings. This basis of recovery depends on the
relationship between the amount of insurance carried and the
replacement cost of the building (without depreciation) and whether the
property is actually repaired or replaced.
If, at the time of the loss, the insured was carrying insurance equal to
80% or more of the building's replacement cost, the policy will pay the
replacement cost of the damage to the building.
If, however, the insured was not carrying at least 80% of the
replacement value of the building, the policy will pay the actual cash
value of the building damaged or that proportion of the cost to replace the
damage that the amount of insurance bears to 80% of the replacement
cost of the building, subject to the maximum carried under the policy.
In no event will the policy pay more than actual cash value unless repair
or replacement is actually made, unless the cost to repair or replace the
damaged property is both less than 5% of the amount of insurance on
the building and less than $2,500.
Certain classes of property, which are covered under the building items
of the policy, are nevertheless not covered on a replacement cost basis,
and indemnity for such property is paid on an "actual cash value" basis.
These include outdoor radio and television antennas and aerials,
carpeting, awnings, domestic appliances and outdoor equipment, all
whether attached to the building or not.
An endorsement is offered which broadens the coverage on
unscheduled personal property. Under the terms of this endorsement,
personal property is covered on a replacement basis (without deduction
for depreciation).
The company is not liable, however, for more than the lowest of the
following amounts:
1. Replacement cost of the property at the time of the loss.
2. The cost to repair or replace the property.
3. Replacement of the damaged portion of a covered building with
material of similar kind and quality and for a similar use.
Inflation Guard Endorsement - For an additional premium, Homeowners
policies 1, 2, 3 and 8 may be endorsed to increase the company's liability
under Coverages A, B, C and D by a stipulated percentage prorated
during the policy year. The insured is offered a choice of percentage
increases - 1%, 2%, etc. The percentage increase is applied to the
original amount of insurance in force at inception date.
Breakage of Glass - Glass that is part of the building is covered for its
replacement with more expensive safety glass if that is required by local
laws.
Pair or Set Clause - Similar to a valuation clause found in personal article
floaters. Homeowners policies allow the company either to repair,
replace the property, or to pay for the reduction in the actual cash value
of the pair or set due to the loss.
The section that follows will discuss each of the individual Homeowners
policies, pointing up any features of the policy which are specific to the
form (i.e., do not recite clauses that were analyzed previously in
FEATURES COMMON TO ALL HOMEOWNERS FORMS).
FEATURES COMMON TO ALL HOMEOWNERS
FORMS
PROPERTY NOT COVERED
The policies do not cover:
 | Animals, birds or fish; | |
| All motorized vehicles, except those vehicles used for the | |
| service of the premises and not licensed for road use; limited exceptions are made for motorized golf carts; | ||
| Aircraft and parts; | |
| Hovercraft and parts; | |
| Property of roomers and boarders not related to the insured; | |
| Property carried or held as samples or for sale or for delivery | |
| after sale; business property while away from the premises; | ||
| Books of account, drawings or other paper records and | |
| electronic data processing tapes, wires, records, discs, or other software media all containing business records. The cost of blank or unexposed records and media is covered. | ||
| Property rented or held for rental to others by the insured; | |
| Property separately described and specifically insured in whole | |
| or part by any other insurance; | ||
| Fences, pavements, patios, swimming pools, foundations, | |
| retaining walls, bulkheads, piers, wharves and docks are not covered for damage by freezing or thawing, or by pressure or weight of ice or water, even if the ice or water is driven by the wind. |
in wiring, masts and towers, are not covered for the perils of windstorm and
hail.
When Premises Are Rented to Others - The policy does not cover loss by
theft to property in a portion of the premises rented to others.
HAZARDS NOT COVERED
There are considerable differences in the perils covered under the
several Homeowners policies, and some exclusions which are not
common to all the policies. Basically, all forms contain certain exclusions,
as outlined below:
War - The policy does not cover loss due to war.
Nuclear Hazard - Nuclear hazard, which is defined as any nuclear
reaction, radiation or radioactive contamination, controlled or uncontrolled
or however caused, or any consequence of these, is a peril not covered
under Section I of the policy (building coverage). An exception is made
for direct loss by fire resulting from the nuclear hazard which is covered.
Pollutant Exclusion - The policy does not cover loss from seepage,
migration or escape of pollutants unless caused by a peril insured
against under Coverage C of the policy. Also excluded is loss due to the
release, discharge or dispersal of contaminants or pollutants.
Water Damage - There is no coverage for loss caused by flood water,
surface water, waves and sprays of these. Nor is there coverage for
backup of sewers and drains and water below the ground level. Finally,
there is no coverage for damage from water borne material. However, if
fire or explosion ensues, the ensuing loss is covered. Specifically
excluded are losses due to the overflow of a sump pump.
While homeowners policies do not cover loss due to surface waters or
flood or the backing up of sewers and drains, Forms 2, 3, 4, 5 and 6 do
cover loss due to the escape of water or steam from within plumbing,
heating or air conditioning systems or from sprinkler systems or from
within a household appliance. Note that no coverage is provided for the
expense of the lost water or steam.
Excepted from the coverage are losses arising from the accidental
escape of water or steam if the insured takes no action once damage
has become evident. Also excluded is loss that occurs after the
residence has been vacant for over 30 days prior to the loss.
MARYLAND, VIRGINIA - All Homeowners policies must offer an
endorsement covering loss from the backing up of sewers and drains,
provided such loss is not caused by the negligence of the insured. The
coverage is subject to a deductible of $250.
Freezing of Plumbing Systems - All the Homeowners policies (except
HO8) exclude loss due to the freezing of plumbing systems and
appliances while the premises are vacant or unoccupied EXCEPT when
heat is maintained in the dwelling or the system is drained.
The HO 8 provides no coverage for this exposure.
Ordinance or Law - All the Homeowners policies exclude coverage for
loss necessitated by the enforcement of a local or state ordinance
regulating the construction, repair or demolition of a building or structure.
For an additional charge, coverage against these perils may be provided.
Earthquake or Earth Movement - Homeowners policies exclude loss
resulting from earth movement, including earthquake, landslide and mine
subsidence, etc. The policy does cover volcanic action above the
ground.
The policy may be extended by endorsement, upon payments of an
additional premium, to cover the perils of earthquake, earth movement,
landslide, etc.
Power Interruption - Consequential loss to property from the failure of
such equipment is excluded, unless it results from physical damage to
power, heating or cooling equipment on premises caused by an insured
peril. However, if a peril otherwise insured against ensues, the ensuing
loss would be covered.
Damage By Insured's Animals - The policy does not cover damage
caused by animals (domestic or non-domestic) owned or kept by an
insured. This exclusion does not apply to animals or pets not owned by
or kept by the insured.
Intentional Loss - Losses intended by the insured are not covered, but
this exclusion does not apply to an insured who does not participate in
the loss.
Neglect - The policy does not cover loss due to failure of the insured to
use all reasonable means to save the property at and after the time of the
loss.
Governmental Action - Loss caused due to destruction or seizure that is
ordered by public authorities is excluded except when the destruction is
ordered for creating a firebreak (against an existing fire).
FOR HOW MUCH
Deductibles - In most states, a $250 deductible is made applicable to all
perils. Higher and lower deductibles are available, with corresponding
adjustments in premium.
The deductible does not apply to Loss of Use or the Fire Department
Service Charge.
Replacement Cost Coverage - All the Homeowners policies on dwellings
(except HO8) incorporate a Replacement Cost section, applicable to
buildings and outbuildings. This basis of recovery depends on the
relationship between the amount of insurance carried and the
replacement cost of the building (without depreciation) and whether the
property is actually repaired or replaced.
If, at the time of the loss, the insured was carrying insurance equal to
80% or more of the building's replacement cost, the policy will pay the
replacement cost of the damage to the building.
If, however, the insured was not carrying at least 80% of the
replacement value of the building, the policy will pay the actual cash
value of the building damaged or that proportion of the cost to replace the
damage that the amount of insurance bears to 80% of the replacement
cost of the building, subject to the maximum carried under the policy.
In no event will the policy pay more than actual cash value unless repair
or replacement is actually made, unless the cost to repair or replace the
damaged property is both less than 5% of the amount of insurance on
the building and less than $2,500.
Certain classes of property, which are covered under the building items
of the policy, are nevertheless not covered on a replacement cost basis,
and indemnity for such property is paid on an "actual cash value" basis.
These include outdoor radio and television antennas and aerials,
carpeting, awnings, domestic appliances and outdoor equipment, all
whether attached to the building or not.
An endorsement is offered which broadens the coverage on
unscheduled personal property. Under the terms of this endorsement,
personal property is covered on a replacement basis (without deduction
for depreciation).
The company is not liable, however, for more than the lowest of the
following amounts:
1. Replacement cost of the property at the time of the loss.
2. The cost to repair or replace the property.
3. Replacement of the damaged portion of a covered building with
material of similar kind and quality and for a similar use.
Inflation Guard Endorsement - For an additional premium, Homeowners
policies 1, 2, 3 and 8 may be endorsed to increase the company's liability
under Coverages A, B, C and D by a stipulated percentage prorated
during the policy year. The insured is offered a choice of percentage
increases - 1%, 2%, etc. The percentage increase is applied to the
original amount of insurance in force at inception date.
Breakage of Glass - Glass that is part of the building is covered for its
replacement with more expensive safety glass if that is required by local
laws.
Pair or Set Clause - Similar to a valuation clause found in personal article
floaters. Homeowners policies allow the company either to repair,
replace the property, or to pay for the reduction in the actual cash value
of the pair or set due to the loss.
The section that follows will discuss each of the individual Homeowners
policies, pointing up any features of the policy which are specific to the
form (i.e., do not recite clauses that were analyzed previously in
FEATURES COMMON TO ALL HOMEOWNERS FORMS).
 |  |  |  |  |  |
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.