General Nature of Homeowners Program.ppt

General Nature of Homeowners Program Section I: Property (this chapter 8) Section II: Liability (next chapter 9) Homeowners Forms Five standard forms in most jurisdictions HO 00 02 Broad HO 00 03 Special Form HO 00 04 Tenants Broad Form HO 00 06 Condominium Unit Owners Form HO 00 08 Modified Coverage Form Homeowners Section I Coverages Coverage A Dwelling Coverage B Other structures Coverage C Personal property Coverage D Loss of use Homeowners - Perils Insured HO-2, 4, 6 HO-3 Dwelling Named Perils Open Peril Other Structures Named Perils Open Peril Personal Property Named Perils Named Perils Loss of Use Named Perils Named Perils Homeowners - Perils Insured The following named perils apply to all property under forms HO-2, 4, and 6 personal property under form HO-3: 1. Fire or lightning 2. Windstorm or hail 3. Explosion 4. Riot or civil commotion 5. Aircraft 6. Vehicles 7. Smoke 8. Vandalism or malicious mischief (more) Homeowners - Perils Insured 9. Theft 10. Falling objects 11. Weight of ice, snow or sleet 12. Accidental discharge or overflow of water 13. Sudden and accidental damage to steam or water heating system 14. Freezing of plumbing 15. Damage from artificially generated electricity 16. Volcanic eruption Coverage on Dwelling and Other Structures 1. Dwelling shown in declarations and additions attached 2. Materials and supplies located on or next to dwelling used for construction, alteration or repair Replacement Cost Coverage 1. If the amount of insurance on the dwelling (or other structure) at the time of loss is at least 80% of the replacement cost of the structure, the loss will be paid without a deduction for depreciation. Replacement Cost Coverage 2. If the amount of insurance is less than 80% of replacement cost, payment will be made for the larger of two amounts: the actual cash value of the loss the portion of the replacement cost of the loss that the amount of insurance bears to 80% of the replacement