Texas Homeowner Forms and Endorsements Description

Transcription

1 Texas Homeowner The following is a brief description of the ISO Homeowners Policy Forms. HO Homeowners 3 Special Form. This form is analogous to the Texas Homeowners Policy - Form B. A side-by-side comparison of the policies' provisions is provided; Texas Homeowner Property Coverage Comparison and Texas Homeowner Liability Coverage Comparison. HO Homeowners 4 Contents Broad Form. This form is issued to a tenant (non-owner) of a dwelling or an apartment situated in any building; or an owner-occupant of a dwelling, cooperative unit or of a building containing an apartment not otherwise eligible for a Homeowners Policy Form 3 or 5. The residence premises occupied by the insured must be used exclusively for residential purposes, with specified exceptions, and is not occupied by more than one additional family or more than two boarders or roomers. The breadth of coverage is like that provided to Coverage C- Personal Property in Form 3, except under the Additional Coverages, Buildings Additions and Alterations coverage for tenant acquired or made improvements, replaces the Landlords Furnishings coverage not needed by tenants. This form is analogous to the Texas Homeowners Tenant Policy - Form B. HO Homeowners 5 Comprehensive Form. This form is similar to the Homeowners 3 Special Form except that Coverage C - Personal Property is insured on an open perils basis. This form is analogous to the Texas Homeowners Policy - Form C. HO Homeowners 6 Unit-Owners Form. This form is issued to an owner of condominium or cooperative unit used for residential purposes. The breadth of Coverage C - Personal Property is like the Form 4 except there is no Additional Coverage for Landlord Furnishings or Building Additions and Alterations. Instead, all building and structural items in the unit or on the premises containing the unit for which the unit owner is solely responsible, are covered under Coverage A - Dwelling for a basic limit of $5,000. This limit can be increased to the unit owner's exposure need. This form is analogous to the Texas Homeowners Condominium Policy- Form B.

2 Texas Homeowner Page 2 HO Personal Property Replacement Cost Loss Settlement - Texas. Provides replacement cost loss settlement on contents Coverage C. HO Foundation Coverage - Texas. This endorsement provides coverage for settling, cracking, shrinking, bulging, or expansion of foundations, floor slabs or footings that support the dwelling caused by seepage or leakage of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system. The coverage includes the cost of tearing out and replacing any part of the building necessary to repair the system from which the water or steam escaped. The loss to the system from which the water or steam escaped is not covered. The endorsement limits coverage to 15% of the amount of insurance for Coverage A - Dwelling on the date of the loss. Central also offers options for 5% and 10% on forms and HO Limited Fungi Coverage-Texas. Central does not offer this ISO form, but we do offer this coverage on form Form provides a basic limit up to $5,000 for the cost of testing and remediation and for any increase in expenses for Loss of Use due to such testing and remediation. Additional limits of 10%, 25%, 50% and 100% of the Coverage A limit of liability are also provided. HO Water Back Up And Sump Overflow - Texas. This endorsement provides coverage for loss resulting from water, or water-borne material, which backs up through sewers or drains or which overflows from a sump. The limit of liability available under this option is $5,000. The basic Limit of $5,000 may be increased to a maximum of $100,000. However, if the back-up or overflow results from the events described in the Water Damage exclusion in the endorsement, it is not covered. HO Windstorm or Hail Percentage Deductible (All Forms Except HO and HO 00 06). This endorsement provides a higher deductible for loss to covered property caused by windstorm or hail. The deductible is equal to a stated percentage of the limit of liability that applies to Coverage A - Dwelling. The percentage amounts in Central s program are.50%, 1%, 1.5%, 2%, 2.5%, 3%, 4% and 5%. Ed. Note: There is also a higher Windstorm or Hail deductible option that is based on "fixed dollar" amounts of $500 and $1,000. This deductible option is declared in the deductible section of declarations page, eg: $1,000 to Windstorm or Hail; $250 All other Perils. Since no policy provisions are altered by the "fixed dollar" provisions, no endorsement is needed.

3 Texas Homeowner Page 3 HO Coverage B. Other Structures Away From The Residence Premises. Under Forms HO and HO 00 03, the policy form provides additional insurance, on a "blanket" basis, of up to 10% of the Coverage A - Dwelling limit for other structures located on the residence premises. This endorsement extends the "blanket" amount to apply to structures located away from the residence premises, e.g. boathouse, dock, garage. Coverage is subject to ACV loss settlement and other conditions. HO Additional Interest (Residence Premises). In addition to the Mortgagee(s) shown in the Declarations or elsewhere in the policy, this endorsement names additional persons or organizations which also have an interest in the residence premises. HO Additional Insured (Residence Premises). This endorsement covers the interest of an additional insured relating to the residence premises. HO Other Members Of Your Household. This endorsement provides coverage to a person who is a member of the named insured's household but does not fall under the definition of insured in the policy. HO Additional Insured. Student Living Away From The Residence Premises. The new homeowners forms include a full-time student under age 24 away at school within the definition of "insured" This endorsement is used to broaden that definition by removing the age and fulltime student restrictions. HO Residence Held In Trust. This endorsement provides Section I - Property and Section II - Liability coverage for grantors, beneficiaries and trustees related to a residence held in trust. HO Incidental Farming Personal Liability. This endorsement, sometimes called the "Hobby Farm" endorsement, provides Section II - Liability coverage when farming, conducted on the residence premises, is incidental to the use of the premises as a dwelling, and the income derived from the farming operations is not the insured's primary source of income. The endorsement also provides Section II - Liability coverage for the liability of the insured whose incidental farming activities are conducted at locations specified in the endorsement which are away from the residence premises.

4 Texas Homeowner Page 4 HO Farmers Personal Liability. This endorsement provides Section II - Liability coverage when the insured has a farm away from the residence premises and farming is not the insured's primary occupation. The coverage may be extended to include employers liability including medical payments, for farm employees of an insured. HO Increased Limits On Business Property. This endorsement allows the $2,500 limit of liability for business property on the residence premises to be increased to $10,000 in increments of $2,500. HO Premises Alarm Or Fire Protection System. This endorsement acknowledges the application of a premium credit for the installation of an alarm system or automatic sprinkler system. HO Specified Additional Amount Of Insurance For Coverage A - Dwelling (Forms HO and HO Only). This endorsement provides additional insurance under Coverage A -Dwelling only when loss to the dwelling building exceeds the limit of liability shown in the policy declarations. HO Loss Assessment Coverage. This endorsement increases the limit in the policy form from $1,000 to the amount stated in the endorsement and enables coverage to be extended to additional locations. HO Loss Assessment Coverage For Earthquake. This endorsement provides loss assessment coverage resulting from earthquake. HO Structures Rented To Others (Residence Premises). This endorsement provides Section I - Property and Section II - Liability coverages when a structure on the residence premises is rented to others for dwelling purposes. HO Permitted Incidental Occupancies (Residence Premises). This endorsement provides expanded Section I - Property and basic/limited Section II - Liability coverage for a business operated on the residence premises. HO Replacement Cost Loss Settlement For Certain Non. Building Structures On The Residence Premises. This endorsement provides for certain types of structures not subject to rapid and/or significant wear and tear (e.g. metal fences, masonry walls, patios or walks not made of wood or wood products.)

5 Texas Homeowner Page 5 HO Other Structures On The Residence Premises. Increased Limits. This endorsement provides coverage for each structure, located on the residence premises, described on the endorsement for the additional limit of liability specified for that structure. HO Building Additions And Alterations. Other Residence. This endorsement provides Section I - Property coverage for additions and alterations at residences, other than the residence premises, not owned by an insured. HO Personal Property At Other Residences. Increased Limits. This endorsement increases the limit for personal property usually located at other residences in the policy form from 10% of Coverage C to the amount stated in the endorsement. HO Building Additions and Alterations. Increased Limit (Form HO 00 04). This endorsement increases the limit for additions and alterations in the policy form from 10% of Coverage C to the amount stated in the endorsement. HO Livestock Collision Coverage. This endorsement may be attached to a policy with either the HO Incidental Farming Personal Liability or HO Farmers Personal Liability coverage to insure against loss resulting from death of covered livestock from specified causes. HO Credit Card, Electronic Fund Transfer Card or Access Device, Forgery and Counterfeit Money Coverage. Increased Limit. This endorsement increases the limit applicable to Credit Card, Electronic Fund Transfer Card or Access Device, Forgery And Counterfeit Money coverage in the policy form from $500 to the amount stated on the endorsement. HO Earthquake. This endorsement extends coverage to insure against loss resulting from Earthquake. HO Assisted Living Care Coverage. This endorsement provides personal property, additional living expense and personal liability coverage to a person regularly residing in an assisted living care facility. HO Scheduled Personal Property Endorsement (Copy of Page 1 of HO 04 61). This endorsement is attached to the insurer's paper or electronic copy of the daily reports to record the items and amounts scheduled.

6 Texas Homeowner Page 6 HO Coverage C Increased Special Limits Of Liability. Endorsement HO 04 65, which provides named perils coverage accommodates increases in the Special Limits of Liability that apply to certain categories of personal property. e.g. jewelry, furs, money, silverware, firearms and electronic apparatus. HO Windstorm Or Hail Exclusion - Texas. This endorsement excludes loss caused directly or indirectly by windstorm or hail and may be used only when a risk eligible for such coverage is written in the Texas Catastrophe Property Insurance Pool. HO Special Computer Coverage - Texas. This endorsement provides open perils coverage to computers and related equipment. HO Coverage C Increased Special Limits Of Liability - Texas. Endorsement HO 04 73, which provides open perils coverage, accommodates increases in the Special Limits of Liability that apply to certain categories of personal property. e.g. jewelry, furs, money, silverware, firearms and electronic apparatus. HO Ordinance Or Law Increased Amount of Coverage. This endorsement increases the limited amount of Ordinance of Law coverage provided in the policy form from 10% of Coverage A (or Coverage C of HO 00 04) to a percentage amount stated in the endorsement.. HO Specific Structures Away From The Residence Premises. This endorsement provides insurance on a scheduled basis for structures away from the residence premises. The limit for each structure is stated on the endorsement. HO No Section II Liability Coverages For Home Day Care Business, Limited Section I - Property Coverages For Home Day Care Business. This endorsement, which is attached to all policies, informs the policyholder that a home day care business is not covered under Section II - Liability and only has limited business property coverage under Section I - Property. HO Refrigerated Property Coverage. This endorsement insures covered property stored in a freezer subject to a maximum amount of $500 and a special deductible of $100. HO Sinkhole Collapse. This endorsement insures against loss by Sinkhole Collapse under Section I - Property coverage.

7 Texas Homeowner Page 7 HO Owned Motorized Golf Cart Physical Loss Coverage. This endorsement provides open perils coverage for owned golf carts. It also allows the insured to select or decline collision coverage. HO Functional Replacement Cost Loss Settlement (Form HO Only). This endorsement provides building loss settlement exclusively on a functional replacement cost basis if, at the time of a loss, the amount of insurance on the damaged building is 80% or more of the functional replacement cost of the building immediately before the loss. Functional replacement cost means the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique or custom construction materials and methods. HO Extended Theft Coverage For Residence Premises Occasionally Rented To Others. This endorsement provides coverage for loss by theft when all or part of the residence premises usually occupied by the insured is occasionally rented, in whole or in part, to others, or is regularly or occasionally rented to roomers or boarders. HO Landlord's Furnishings. The basic policy form HO 00 02, HO and HO provide coverage for landlord's furnishing up to $2,500 per apartment. This endorsement increases that limit. HO Special Personal Property Coverage. Form HO Only - Texas. In Form 4, Coverage C - Personal Property is insured on a named perils basis. This endorsement extends such coverages to an open perils basis. Together with Form 4, this endorsement is analogous to Texas Homeowners Tenants Policy - Form C. HO Unit-Owners Rental To Others. This endorsement is used with Form 6 to provide Coverage C - Personal Property coverage, subject to certain theft exclusions, and Section II - Liability coverage when the residence premises is regularly rented or held for rental to others. HO Unit-Owners. Modified Other Insurance And Service Agreement Condition. Form 6 provides that if there is other insurance in the name of a corporation or association of property owners covering the same property, payment for a covered loss will be excess over the amount recoverable under such loss. If the Association does not recover under its policy, for any reason, there is no payment to the insured. This endorsement is used with Form 6 to alter the Other Insurance and Service Agreement Condition provide for payment of a covered loss in excess of the amount due from the other insurance whether the corporation or association of property

8 Texas Homeowner Page 8 owners can collect on it or not. HO Unit-Owners Coverage C Special Coverage - Texas. In Form 6, Coverage C - Personal Property is insured on a named perils basis. This endorsement extends such coverages to an open perils basis. Together with Form 6, this endorsement is analogous to Texas Homeowners Condominium Policy - Form C as it relates to personal property. HO Unit-Owners Coverage A Special Coverage - Texas. In Form 6, Coverage A - Dwelling is insured on a named perils basis. This endorsement extends such coverages to an open perils basis. Together with Form 6, this endorsement is analogous to Texas Homeowners Condominium Policy - Form C as it relates to dwelling coverage. HO Special Loss Settlement - Texas. The policy provides building loss settlement on a replacement cost basis if, at the time of loss, the amount of insurance on the damaged building represents at least 80% of the full replacement cost of the building immediately before the loss. This percentage amount may be modified to 50%, 60% or 70% of replacement value without affecting the loss settlement provisions. If this option is selected, the Coverage A limit representing 50%, 60% or 70% of replacement value is to be shown in the policy declarations. HO Scheduled Personal Property Endorsement Texas Provides that this schedule covers property separately described and specifically insured. HO Personal Property Replacement Cost Loss Settlement - Texas. Provides replacement cost loss settlement on contents Coverage C. HO Actual Cash Value Loss Settlement Windstorm Or Hail Losses To Roof Surfacing (All Forms Except HO 00 04) This endorsement amends the replacement cost loss settlement condition in the policy form to an ACV basis when roof surfacing is damaged by windstorm or hail. HO Incidental Low Power Recreational Motor Vehicle. This endorsement provides Section II - Liability coverage for certain types of low power recreational motor vehicles with a maximum attainable speed of 15mph and subject to other conditions. HO Permitted Incidental Occupancies. Other Residences. This endorsement provides basic/limited Section II - Liability coverage for a business is operated from an insured's residence, other than the residence premises.

9 Texas Homeowner Page 9 HO Personal Injury - Texas. This endorsement provides Section II - Liability coverage for personal injury to others, such as false arrest, libel or invasion of privacy. HO Owned Snowmobile. This endorsement provides Section II - Liability coverage, subject to certain limitations, when a snowmobile described in the endorsement is used off an insured location. HO Additional Residence Rented To Others (1, 2, 3 or 4 Families). This endorsement provides Section II - Liability coverage when a structure on the residence premises is rented to others for dwelling purposes. HO Business Pursuits. This endorsement provides Section II - Liability Coverage arising out of business activities of an insured described in the endorsement. Coverage is excluded if the insured owns the business, is a partner or maintains financial control in the business. HO Watercraft. This endorsement provides Section II - Liability coverage for Watercraft up to 26 feet in length and powered by outboard engines or motors exceeding 25 horsepower; or craft powered by any inboard or inboard-outdrive engine or motor. Sailboats 26 feet or more in overall length, with or without auxiliary power, can also be covered. HO Exclusion Of Farm Employees Illegally Employed. This endorsement excludes Section II - Liability coverage for bodily injury to a farm employee employed in violation of the law by the insured. HO Exclusion Of Residential Property Clause - Texas. This endorsement deletes the residential property clause from the form.