HOMEOWNER FORMS COMPARISON OF 1991, 2000 & 2011 VERSIONS

Transcription

1 PAGE 1 HOMEOWNER FORMS COMPARISON OF 1991, 2000 & 2011 VERSIONS TOPIC HOW HO-91 HANDLES IT HOW HO2000 HANDLES IT HOW THE 2011 HO REVISION HANDLES IT Risks of direct physical loss on personal property Other Structures valuation Other structures, business use Who is covered? HO-15 added to HO-3 ACV valuation for other structures that are not buildings Excludes coverage for any other structure used in whole or part for business Covers named insured, spouse & resident relatives HO-5 Comprehensive form (HO-15 withdrawn) Endorsement HO Replacement cost settlement for certain non-building structures for 2% premium surcharge Provides coverage for another structure used to store business property owned solely by the insured Can add HO to provide coverage for live-in situations Definition of Business Trade, profession or occupation Added four exceptions to the definition: 1. One or more activities, for which no insured receives more than $2,000 in total compensation for 12 months before inception date of policy; 2. Volunteer activities for which no money is received 3. Providing home day care

2 PAGE 2 services for which no compensation is received, other than the mutual exchange of such services; OR 4. The rendering of home day care services to a relative of an insured. Extension for relative s property/liability in assisted living No way to extend Can add HO Assisted Living Care Endorsement Valuation of scheduled property Property valued on ACV or RC only Fine arts settled on agreed value basis Agreed value for scheduled property endorsement HO Permits an agreed value for any scheduled property Perils available for HO-4 Named perils only Special Personal Property coverage for HO-4 policy HO changes perils to risks of direct physical loss except what s excluded Golf cart liability Provides liability for an owned golf cart on an insured location and while on a golf course playing golf Provides liability inside a golfing facility AND it s either parked or stored there or being used to play golf, used for other activities permitted in the golfing facility, travel to/from where motor vehicles or golf carts are parked/stored or cross public roads at designated points to access other parts of

3 PAGE 3 the golfing facility PLUS inside a private residential community if the roads are subject to the authority of the community and if the community has designated such roads for use by golf carts. The community must contain the insured s residence. Golf cart physical damage Not available Available under form HO Business Liability for under insured under 21 Not available Liability now applies for an insured under 21 engaged in a part time or occasional self employed business with no employees such as baby sitting, cutting grass. Securities special limit $1,000 $1,500 Watercraft special limit $1,000 $1,500 Trailers special limit $1,000 $1,500 Theft of jewelry special limit $1,000 $1,500 Business personal property away from premises special limit $250 $500 $1,500 Theft of firearms special limit $2,000 $2,500 but added related equipment to limitation of coverage Electronic apparatus in motor vehicles special limit $1,000 $1,500 Changed name from electronic apparatus & accessories to portable electronic equipment Added $250 sublimit for antennas, tapes, wires, records,

4 PAGE 4 Electronic apparatus not in motor vehicles, off premises and used for business special limit Coverage D limit HO 2 & 3 Coverage D limit HO 4 Coverage D limit HO 5 Coverage D limit HO 6 Debris removal trees Limit Debris removal for felled trees discs and other media in or on a motor vehicle $1,000 $1,500 Deleted 20% of Cov A 30% of Cov A 20% of Cov C 30% of Cov C n/a 30% of Cov A 40% of Cov C 50% of Cov C $500 $1000 ($500 for any one tree applies) Applies only if tree falls on the Applies if tree falls on the dwelling dwelling as well as if the tree blocks vehicle access to driveway or handicap access into the residence Personal Injury endorsement No loss assessment coverage Includes $1,000 of loss assessment coverage Liability damage to property $500 $1,000 of others Vandalism Exclusion Permitted vacancy was 30 days Permitted vacancy now 60 days but added wording stating that any ensuing loss caused in the course of vandalism in a vacant home is not covered.

5 PAGE 5 Low powered recreational vehicle liability coverage Coverage limited to nonowned or if owned, on premises only Add Low Powered Recreational Vehicle Endorsement HO for owned off premises coverage Revised exclusion in policy form to include exception for owned battery-operated, low-speed toy vehicles used off the insured location Vehicle must be designed as a toy for use by children under age seven, powered by one or more batteries and not built or modified to exceed a speed of five miles per hour on level ground. Trailer Section II Damage to property of others trailers Covered while trailer is hitched to an auto & not moving Trailers not motorized are covered as long as damage did not arise out of an auto No longer covered Excludes any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle. This endorsement (HO 24 13) has now been revised to exclude scooters. Trusts No good way to cover Residence Held In Trust endorsement #HO HO withdrawn. New endorsement, HO for trusts where the former owner is trustee & continues to live in the house and is requesting policy. Policy is issued in name of grantor (named insured) rather

6 PAGE 6 Personal property used in business Away at school theft Host liquor liability Limited coverage to personal property used at any time or in any manner for any business purpose Theft exclusion for insured away from school more than 45 days Provided by form only excluded claim for owned, operated, rented or loaned vehicle to an insured Rewords the limitation to apply to personal property used primarily for business purposes. Theft exclusion for insured away from school increased to 60 days Excludes host liquor by excluding if vehicle involved was owned, maintained, occupied, operated, loaded or unloaded by any person as well as entrustment of a vehicle, failure to supervise and vicarious liability related to a motor vehicle. than trust. Definition of insured is revised to include the trust but only for Building, Other Structures, Liability & Medical Payments to Other coverage. Broadening coverage for personal property of a student while at school. The number of days that the student must be in residence prior to a theft loss has been increased to 90 days. Vehicles used to service the residence Section I & II Coverage applied if vehicle ever used to service insured residence Requires that it be used SOLELY to service the insured s residence. If the insured uses it off premises, coverage is taken away for all damage done by or to the vehicle Language under Section I & II has been revised to delete an insured s residence and replace it with a residence. Coverage is provided if the insured uses the vehicle on a neighbor

7 PAGE 7 no matter where it is being used property. Student away at school Covered subject to 10% of coverage C Added wording that states a child away at school is an insured only if enrolled as full time student (by school s definition) and under the age of 24. An endorsement is available to increase the age but child must still be a resident of household when not a school. Water and steam Damage from artificially generated electrical current Cost of water to fill pool after a loss or cost of utility bill from broken water main Covered damage to personal property caused by power surges but excluded tubes & transistors Excluded under property not covered. Excludes tubes & transistors plus electronic components or circuitry that are part of appliances, fixtures, computers & home entertainment units. Water damage Excludes water which backs up did not mention sewerage Expands exclusion to include water borne material that backs up Intentional Loss Coverage provided when an innocent spouse submitted a claim for damage done by other spouse No insured is entitled to coverage even insureds who did not commit act Expected or Intended Some courts found coverage No coverage if resulting BI or Expands coverage for not only

8 PAGE 8 Freezing of a plumbing system HO 3 Eligibility Personal Property located in a self-storage facility Earth movement exclusion Change in definition of insured when someone else was injured when intending to injure a person Exclusion applies only when building was unoccupied or vacant and insured had not left heat on or drained the system Applies to one or two family dwellings (owner occupied) No restrictions personal property limit available. Limitation only applied to property usually located at another residence Included other person under age 21 and in care of any person named above PD is of a different kind, degree or quality than initially expected or intended; is sustained by a different person, entity, real or personal property. Removes vacancy or unoccupancy wording exclusion now applies even while insured is at home Applies to up to four family dwellings (owner occupied) Deductible provisions Deductible listed on dec. page Deductible provisions introduced into the policy & removed from dec. page bodily injury resulting from use of reasonable force to protect persons or property but for Property Damage as well. Adds a limitation of 10% of coverage C limit or $1,000 whichever is greater for personal property located in a self-storage facility. Limit can be increased by endorsement. Reinforces the exclusion by stating that the exclusion applies regardless of cause (whether caused by nature or otherwise caused) To clarify intent, now reads other persons under 21 and in your care or the care of a resident of your household who is your relative Revised to state than when multiple deductibles apply to a loss, only the higher deductible

9 PAGE 9 applies. Vermin Excluded but not defined Deletes the word vermin and adds a provision to exclude nesting, infestation or discharge or release of waster products or secretions which applies to any animal (reduction in coverage) Controlled Substance Exclusion Exception for legitimate use of prescription drugs by order of licensed physician Collapse Perils insured against Other Insurance provision of HO amended Risk of direct physical loss wording Wording was revised to replace licensed physician with health care professional Reworded to provide coverage for abrupt collapse - just a clarification in wording Taking out the word risk now reads direct physical loss Loss covered by unit-owners policy and not covered by association policy because of application of deductible, the unit-owners policy is primary Transition endorsement N/A N/A New endorsement that can be added to the HO 2000 policy to implement the revisions to that form with the 2011 form change Loss Assessment Coverage endorsement revised Replacement Cost Non- Building Structures Limit of $1,000 for loss assessments due to association deductibles N/A Endorsement introduced but limited in-ground or semi-in- Eliminates the $1,000 limit for loss assessments due to association deductibles. Revises endorsement HO to provide RC for swimming

10 PAGE 10 Water Back-up and Sump Pump Discharge of Overflow endorsement ground swimming pools, hot tubs & therapeutic baths to ACV valuation only pools and hot tubs walls & floors made of reinforced masonry, cement, metal or fiberglass $5,000 $5,000 Title changed to include the word Limited. Revised wording to clarify that water/waterborne material must originate within dwelling insured resides in. Deletes reference to a special deductible. Stated Limit of $5000 removed with higher options available for purchase up to $25,000 Home Day Care Endorsement Available Withdrawn and replaced with new policy-writing support form HO P 004 Limited Coverage for Theft of Personal Property Located in a Dwelling Under construction Endorsement Canine Liability Exclusion Endorsement Personal Injury coverage (Aggregate Limit of Liability) N/A N/A New optional endorsement HO available N/A N/A New endorsement HO to exclude coverage for specifically described dogs N/A N/A New endorsement HO adds aggregate to this coverage