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TEXAS Personal Lines Manual & Residential Property Forms Insurance Council of Texas
Texas Personal Lines Manual Residential Property Forms
TEXAS PERSONAL LINES MANUAL H O M E O W N E R S TABLE OF CONTENTS HOMEOWNERS MANUAL I. General Instructions... 3 A. Benchmark... 3 B. Flex Bands... 3 II. Eligibility... 3 A. Owner Occupant... 3 B. Tenant Occupant... 3 C. Incidental Occupancies... 3 D. Farm Property... 3 E. Additional Insureds... 3 Ill. Policy Coverages... 4 A. Section I - Property Coverages... 4 B. Section II - Liability Coverages... 4 C. Required Additional Coverages-Section II... 4 D. Basic Limits of Liability... 4 IV. Additional Coverages & Endorsements... 5 A. Section I Mandatory Offer Endorsements... 5 B. Section I Optional Endorsements... 6 C. Section II Optional Endorsements... 8 D. Section I & II Optional Endorsements... 8 V. General Requirements... 9 A. Policy Period... 9 B. Declarations Page... 9 C. Cancellation... 9 D. Deductibles... 9 E. Transfer or Assignment... 10 F. Consumer Bill of Rights... 10 G. Refusal to Renew... 10 VI. Rating Rules... 10 A. Rating Classifications... 10 B. Determination of Basic Premium... 11 C. Optional Homeowners Credits... 12 D. Interpolation... 13 E. Rounding of Premium Rule... 13 F. Specifically Rated Risks... 13 G. Change in Policy Form... 13 H. Limits of Liability in Excess of Premium Charts (Section II)... 13 I. Additional Amounts or Coverages... 13 J. Change in Hazard... 14 K. Reduction in Homeowners Premium - Home Security Devices... 14 L. Reduction in Homeowners Premium - Automatic Sprinkler System... 14 M. Rate and Premium Computation Rule... 14 N. Mandatory Roof Covering Credits... 15 VII. Rating Examples... 18 VIII. Property Protection Program... 27 A. General... 27 B. Eligibility... 27 C. Optional Endorsements... 29 D. Rating Rules... 30 IX. Texas Property Insurance Rating Territories... 31 SECOND REPRINTING 1 EFFECTIVE JANUARY 1, 2002 COPYRIGHT -ICT SERVICES, INC. - 2002
H O M E O W N E R S TEXAS PERSONAL LINES MANUAL TABLE OF CONTENTS HOMEOWNERS MANUAL cont'd X. Rate Tables and Premium Charts... 34 A. Homeowners Rate Tables... 34 B. Homeowners, Tenants and Condominium Deductible Adjustment Charts... 40 C. Tenant Homeowners Rate Tables... 44 D. Premium Chart Nos. 5-12... 50 E. Premium Chart No. 13... 51 F. Premium Chart Nos. 14, 20,21 and 22... 52 G. Premium Chart Nos. 22a-24... 53 H. Premium Chart Nos. 25-26... 54 I. Premium Chart No. 27... 55 J. Premium Chart No. 28 and 35... 56 K. Premium Chart Nos. 36-39... 57 XI. Texas Homeowners Policy Endorsements and Forms... 58 EFFECTIVE FEBRUARY 1, 1998 2 FIRST REPRINTING COPYRIGHT -ICT SERVICES, INC. - 2002
TEXAS PERSONAL LINES MANUAL H O M E O W N E R S I. GENERAL INSTRUCTIONS The rules, rates and premiums contained herein shall govern the writing of the Homeowners Policy. The rules and the rates approved by the Texas Department of Insurance for each coverage shall govern in all cases not specifically provided for in these rules. II. A. Benchmark: All rates and/or premiums contained in this manual shall be considered benchmark rates and/or premiums. B. Flex Bands: The flex band approved by the Texas Department of Insurance for residential risks subject to rating under this manual are as follows: 1. Homeowners, excluding tenants, and condominiums: (minus) - 30% to (plus) +30. 2. Homeowners, tenants, and condominiums: (minus) - 30% to (plus) +30. The percentages of flexibility filed by individual insurers shall be applied as a final calculation to each coverage or peril for which a separate premium is shown with the following exception: Flex rating may not be applied to scheduled property which is rated from the Personal Inland Marine Manual. ELIGIBILITY A. Owner Occupant A Homeowners Policy with Forms HO-A, HO-B or HO-C attached may be written only for the owner-occupant of a dwelling or townhouse unit used exclusively for private residential purposes (except as provided in Rule C, below) and which contains not more than two families and with not more than two boarders or roomers per family. NOTE: Whenever the term dwelling is used in this Homeowners Section it also includes individually owned townhouse units. Owner Occupancy applies to: the owner or his/her mother, father, son or daughter, grandparent or grandchild, or any combination thereof. 1. Owner Occupant or Non Occupant - A Homeowners Policy may be written using Form HO-CON-B or HO-CON-C to insure the unit owner in a condominium project to include only the boundaries of the apartments which are the interior surfaces of the perimeter walls, ceilings, and the exterior surfaces of the balconies and terraces, excepting common elements. 2. A Homeowners Policy may not be issued using forms HO-A, HO-B or HO-C to provide coverage on an individually owned condominium unit. 3. A Homeowners Policy written using Forms HO-A, HO-B, or HO-C may be amended to include coverage for Dwellings which shall be occupied within 90 or 120 days after inception of the policy for dwelling purposes by attaching Amended Definition of Residence Premises Endorsement No. HO-305. B. Tenant Occupant A Homeowners Policy with Tenant Form B or C attached may be issued only to: 1. The tenant (non-owner) of a dwelling or an apartment and/ or townhouse situated in any building; or 2. The owner-occupant of a dwelling, or of a building containing an apartment and/or townhouse; 3. The tenant (non-owner) of a dwelling located on a farm or ranch, providing the appropriate charge for liability is made as provided in Rule IV.B.4, or Rule III.E.2; provided the residential premises, occupied by the insured, is used exclusively for residential purposes (except as provided in Rule II.C), and is not occupied by more than one additional family or more than two boarders or roomers. (See Rule VI.B.2 for instructions regarding tenant coverage). C. Incidental Occupancies Incidental office, private school or studio occupancy is permitted when the rules of the Dwelling Manual permit such occupancy within a dwelling without an additional charge in the fire rate. (See Rule IV.B.2 for required additional charges for Section II). D. Farm Property A policy shall not be issued covering any property under Section I which is subject to rating as Farm and Ranch or Farm and Ranch Owners Property. E. Additional Insureds 1. Section I (Designated Premises)-In the event the occupant of the dwelling is a mother, father, son, daughter, grandparent or grandchild, or any combination thereof, of the owner of the property, Section I & II coverages may be provided for the occupants by attachment of HO-301 with an additional premium as shown in Premium Chart No. 35. In the case of property subject to administration or distribution as an asset of an estate and occupied by an heir, the Homeowners Policy may be issued in the name of the occupant and the representative of the estate added as an additional insured on the endorsement. A Homeowners Policy covering property being sold under Contract of Sale may be issued in the name of the buyer and the seller may be added by endorsement as an additional insured. 2. Co-owner Occupants-When a two-family dwelling is occupied by co-owners, each occupying separate and independent premises within the building, it is permissible to issue a Homeowners Policy to one of the two co-owner occupants of the dwelling and endorse the policy, using HO-301 to provide Section I or Section II coverage for the other co-owner. A separate Tenant Homeowners Policy may be issued to the second co-owner occupying the other apartment in the dwelling, in which event HO-301 should provide Section I Property Coverage only and specify that Section I Property Coverage applies to Coverage A (Dwelling) only. When a single-family dwelling is occupied by co-owners, not related, each may be named as insureds and Endorsement HO-301 attached for Section II Liability Coverage, naming one as additional insured and charging additional premium as provided in Premium Chart No. 35. ORIGINAL PRINTING 3 EFFECTIVE FEBRUARY 1, 1998 COPYRIGHT - ICT SERVICES, INC. - 2002
H O M E O W N E R S TEXAS PERSONAL LINES MANUAL III. 3. Occupant-Section II-Section II coverage may be provided for any occupant by naming the occupant as an additional insured. Attach Endorsement HO-301 and refer to Premium Chart No. 35. 4. Relative Occupied Condominium-It is permissible to issue a HO-CON-B or HO-CON-C Policy in the name of both owner and relative by attaching Endorsement HO-301, showing owner as additional insured non occupant. 5. A Homeowners policy may be issued in the name of the occupant, and the trust and trustee added as an additional insured (Endorsement HO-301), on property held by a living trust and occupied by a trustee or a beneficiary of the trust. POLICY COVERAGES The following is a general description of the coverage provided by the basic Homeowners forms. The policy forms, endorsements and appropriate rules of this manual should be consulted for details. A. Section I-Property Coverage 1. Form HO-A covers dwelling, other private structures on the premises, and personal property on and away from premises against loss by fire, extended coverage, vandalism and malicious mischief and theft. 2. Form HO-B covers dwelling and other private structures on the premises against all risks of physical loss with certain exceptions. In addition, Form HO-B covers personal property on and away from the premises against loss by fire, extended coverage, vandalism and malicious mischief, theft and certain other named perils. 3. Form HO-C covers dwelling, other private structures on the premises and personal property on and away from premises against all risks of physical loss with certain exceptions. 4. Extensions of Coverage (Forms HO-A, HO-B and HO-C) provides Loss of Use (Additional Living Expense and Rental Value), and Consequential Loss Coverage against the policy perils. Trees, Shrubs, Plants and Lawns are covered against certain named perils. Also included is Coverage for Reasonable Repairs, Property Removal and Automatic Removal. 5. Form HO-BT for tenants covers personal property on and away from premises against loss by fire, extended coverage, vandalism, and malicious mischief, theft and certain other named perils. 6. Form HO-CT for tenants covers personal property on and away from the premises against all risks of physical loss with certain exceptions. 7. Form HO-CON-B for condominium unit owners covers personal property on and away from premises against loss by fire, extended coverage, vandalism and malicious mischief, theft and certain other named perils. 8. Form HO-CON-C for condominium unit owners covers personal property on and away from the premises against all risks of physical loss with certain exceptions. B. Section II-Liability Coverage 1. Coverage C- Personal Liability- Covers payment on behalf of the insured all sums, subject to the stipulated limit, which the insured is legally obligated to pay as damages because of bodily injury or property damage arising out of the residence premises or personal activities; including liability for damage to premises and house furnishings used by or in the care, custody or control of the insured caused by fire, explosion and smoke (Fire Legal Liability). 2. Coverage D- Medical Payments to Others- Covers medical and related expenses, subject to the stipulated limit, arising out of accidents to persons other than the insured and residents of the premises. 3. Additional Coverages-Additional Coverages are provided for Claim Expenses, Imperative Medical Expenses to Others and Damage to Property of Others. 4. Coverage C- Personal Liability and Coverage D- Medical Payments to Others, specifically excludes coverage for bodily injury to any person eligible to receive any benefits voluntarily provided or required to be provided by an insured under any workers compensation law or occupational disease law. This policy, including coverages provided under Endorsement Form HO-210 does not provide workers compensation coverage and the insured as an employer does not become a subscriber to the workers compensation system when purchasing this policy. C. Required Additional Coverages-Section II 1. Additional Residences-Policies shall be written to include under Section II a premium charge for all premises where the named insured or their spouse maintains a residence. See Premium Chart 28. Location and additional premium must be shown on the declarations page of the policy under Other Residential Premises. NOTE: This rule does not apply to additional residences insured under a separate Texas Homeowners Policy or Personal Liability Policy. D. Basic Limits of Liability 1. The basic limits of liability under Section I are: a. Forms HO-A and HO-B: (1) Coverage A (Dwelling) $8,000 Minimum (2) Coverage B (Personal Property) 40% of Coverage A (Dwelling) with 10% of this amount, but not less than $1,000, applying to personal property away from the premises. NOTE 1. The limit of liability for Coverage B (Personal Property) may be increased above 40%, or it may be reduced to not less than 30% of Coverage A (Dwelling) (but not less than $3,200) at premium adjustment shown in the Premium Charts. NOTE 2. The limit of liability for Coverage B (Personal Property) on an owner occupied duplex may be reduced to not less than 20% of Coverage A. EFFECTIVE FEBRUARY 1, 1998 4 COPYRIGHT - ICT SERVICES, INC. - 2002 ORIGINAL PRINTING
H O M E O W N E R S TEXAS PERSONAL LINES MANUAL X. RATE TABLES AND PREMIUM CHARTS HOMEOWNERS - TABLE A Annual Base Premiums - Deductibles No. 1 and No. 2 at 1% of Coverage A (Minimum Deductible $100) Territory Form HO-A Form HO-B Form HO-C 1 $95 $121 $138 2 110 139 163 3 112 144 167 4 89 115 133 5 83 105 123 6 64 81 95 7 49 63 74 8 90 114 130 9 186 239 271 10 100 128 146 11 90 116 131 12 72 92 107 13 62 80 92 14 79 103 120 15C 97 126 145 15N 158 213 226 16C 95 123 143 16S 86 111 129 16N 120 160 174 17 107 137 159 18 136 183 197 19C 124 159 185 19N 151 201 215 20 135 180 195 HOMEOWNERS - TABLE B Protection Class / Construction Factors Public Type of Construction Protection Abestos Clad Class Brick Brick Veneer & Stucco Frame 1 0.86 0.90 0.91 1.08 2 0.86 0.90 0.91 1.08 3 0.94 0.98 0.99 1.18 4 0.96 1.00 1.01 1.20 5 1.00 1.05 1.06 1.26 6 1.05 1.10 1.11 1.32 7 1.10 1.15 1.16 1.38 8 1.15 1.20 1.21 1.44 8B 1.17 1.22 1.35 1.70 9 1.18 1.23 1.49 1.95 10 1.20 1.25 1.52 1.98 EFFECTIVE DECEMBER 31, 2001 34 EFFECTIVE NOVEMBER 1, 2001 COPYRIGHT - ICT SERVICES, INC. - 2002 FOURTH REPRINTING
H O M E O W N E R S TEXAS PERSONAL LINES MANUAL TENANT HOMEOWNERS - TABLE A TEXAS TENANTS FORMS HO-BT AND HO-CT OR CONDOMINIUM FORMS HO-CON-B AND HO-CON-C Annual Base Premiums - Deductible No. 3 at 1% of Coverage B (Minimum Deductible $100) Dwellings & Townhouses Apartments** Other Buildings Condominiums Territory Form B Form C Form B Form C Form B Form C Form B Form C 1 $41 $62 $61 $92 $69 $100 $55 $84 2 32 48 44 66 48 72 43 65 3 32 48 45 66 48 72 44 65 4 24 36 33 49 35 54 32 48 5 40 61 55 83 61 90 55 82 6 29 43 39 59 43 64 39 58 7 37 55 49 75 55 83 49 74 8 29 43 42 63 46 69 39 58 9 34 50 48 72 52 80 45 68 10 29 43 42 62 45 69 39 58 11 35 52 51 78 57 85 47 71 12 29 44 39 59 44 65 39 58 13 25 37 32 49 36 54 32 48 14 32 48 43 64 48 71 42 63 15C 29 43 39 58 43 64 38 57 15N 31 46 47 72 53 79 45 67 16C 27 41 37 57 41 61 37 56 16S 25 37 33 51 37 55 33 51 16N 28 41 43 64 48 71 41 61 17 34 50 46 69 50 76 46 68 18 39 56 59 88 65 97 55 83 19C 30 44 40 60 44 66 40 59 19N 30 46 48 72 52 78 45 67 20 27 41 42 63 46 68 39 58 **Also applies to HO-BT and HO-CT Policies written on Tenant Occupied Condominiums rated under the Condominium Schedule. EFFECTIVE NOVEMBER 1, 2001 44 COPYRIGHT - ICT SERVICES, INC. - 2002 FOURTH REPRINTING
TEXAS PERSONAL LINES MANUAL H O M E O W N E R S TENANT HOMEOWNERS - TABLE B Protection Class / Construction Factors Public Type of Construction Protection Asbestos Clad Class Brick Brick Veneer & Stucco Frame 1 0.91 0.90 1.05 1.15 2 0.91 0.90 1.05 1.15 3 0.99 0.98 1.15 1.26 4 1.01 1.00 1.17 1.28 5 1.06 1.05 1.23 1.35 6 1.11 1.10 1.29 1.41 7 1.16 1.15 1.35 1.48 8 1.21 1.20 1.40 1.54 8B 1.23 1.22 1.42 1.56 9 1.24 1.23 1.43 1.57 10 1.26 1.25 1.46 1.60 TENANT HOMEOWNERS - TABLE C Amount of Insurance Factors Coverage B Amount of Coverage B Amount of Dwelling Insurance Dwelling Insurance Amount Factor Amount Factor $4,000 0.59 $23,000 1.76 5,000 0.65 24,000 1.83 6,000 0.72 25,000 1.91 7,000 0.79 26,000 1.98 8,000 0.86 27,000 2.06 9,000 0.93 28,000 2.14 10,000 1.00 29,000 2.21 11,000 1.06 30,000 2.29 12,000 1.11 31,000 2.36 13,000 1.17 32,000 2.44 14,000 1.22 33,000 2.52 15,000 1.26 34,000 2.59 16,000 1.32 35,000 2.67 17,000 1.37 36,000 2.75 18,000 1.42 37,000 2.82 19,000 1.47 38,000 2.90 20,000 1.53 39,000 2.97 21,000 1.60 40,000 3.05 22,000 1.68 For Each Additional $1,000 in Coverage B Amount (Over $40,000): Add 0.08 to the $40,000 Amount of Insurance Factor to determine the appropriate Amount of Insurance Factor. FIRST REPRINTING 45 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT -ICT SERVICES, INC. - 2002
H O M E O W N E R S TEXAS PERSONAL LINES MANUAL PREMIUM CHART NO. 5 Residential Glass Unscheduled Residence Glass Coverage may be provided by attaching HO-105 at a one year premium of $5.05, each premises to be charged separately. Scheduled Glass Show the type, size, ornamentation, and location in building and value for each item of glass. The premium per $100 of insurance is $5.05. PREMIUM CHART NO. 6 Jewelry, Watches and Furs - Increased Limits When it is desired to increase the limit for jewelry, watches and furs, attach HO-110 and charge the one year rate per $100 of insurance, regardless of deductibles, shown below: Form HO-A $1.01 HO-B & HO-BT 1.01 HO-C & HO-CT 2.01 HO- CON-B 1.01 HO-CON-C 2.01 PREMIUM CHART NO. 7 Additional Limit on Business Personal Property Business Personal Property may be increased from $2500 at a one year rate of $0.37 per $100 of insurance by attaching Endorsement HO-111. PREMIUM CHART NO. 8 Money/Bank Cards, & Bullion/Valuable Papers-Increased Limits Additional Limits for these items may be obtained at a one year premium per $100 of: Form Money/Bankcards Bullion/Valuable Papers (Endorsement HO-112) (Endorsement HO-113) HO-A $ 1.01 $ 1.01 HO-B & HO-BT 2.01 1.01 HO-C & HO-CT 2.01 2.01 HO-CON-B 2.01 1.01 HO-CON-C 2.01 2.01 PREMIUM CHART NO. 9 Radio and Television Antenna Specific coverage for television and radio antennas, including satellite dishes and lead-in wiring, may be provided by attaching endorsement HO-120 at a one year premium of $3.35 per $100 of insurance. PREMIUM CHART 10 Greenhouses Windstorm, hurricane and hail coverage for greenhouses may be provided by attaching Endorsement HO-121 at a one year premium per $100 of: Territory 2,3,4,16C, 5,6,7,12, 15N,16N, 1,8,9,10, 16S,17,19C 13,14,15C 18,19N,20 11 Plain Glass $8.28 $7.32 $9.67 $6.72 All Other $0.18 $0.16 $0.73 $0.43 PREMIUM CHART 11 Cloth Awnings Windstorm, hurricane and hail coverage for cloth awnings may be provided by attaching Endorsement HO-122 at a one year premium per $100 of: Territory 2,3,4,16C, 5,6,7,12, 15N,16N, 1,8,9,10, 16S,17,19C 13,14,15C 18,19N,20 11 $3.49 $3.09 $9.75 $8.98 PREMIUM CHART NO. 12 Physicians, Surgeons, and Dentists Outside Coverage Attach Endorsement HO-125 and charge the following one year premium per $100: Premium per $100 Loss Deductible Form HO-B, Form HO-C, Clause No. 2 or 3 HO-BT, HO-CT, HO-CON-B HO-CON-C $100 or $250 Ded. $ 1.01 $ 1.01 ½ of 1% Ded. 1.01 1.01 1% Ded. 1.01 1.01 $500 Flat 1.01 1.01 $1,000 Flat 1.01 1.01 Greater than 1% 1.01 1.01 EFFECTIVE NOVEMBER 1, 2001 50 COPYRIGHT - ICT SERVICES, INC. - 2002 THIRD REPRINTING
TEXAS PERSONAL LINES MANUAL D W E L L I N G TABLE OF CONTENTS DWELLING SECTION I. General Instructions... 3 A. Benchmark... 3 B. Flex Bands... 3 II. Eligibility... 3 A. Eligible Property... 3 B. Property not Eligible... 3 Ill. Policy Coverages... 3 A. Forms... 3 B. Perils... 3 IV. Endorsements... 3 Mandatory Offer Endorsements... 4 A. Windstorm, Hurricane and Hail Exclusion Agreement Endorsement No. TDP-001 & TDP-001A... 4a B. Reimbursement for Replacement of Personal Property Endorsement No. TDP-002 (TDP-3 only)... 4a C. Exclusion of Residential Community Property Clause Endorsement No. TDP-003... 4a D. Additional Named Insureds Endorsement No. TDP-007... 4a E. Agreed Amount Endorsement No. TDP-008... 4a F. Residence Glass Coverage Endorsement No. TDP-009... 4a G. Loss Payable Clause Endorsement No. TDP-010... 4a H. Vacancy Clause Endorsement No. TDP-011... 4a I. Miscellaneous Property Schedule Endorsement No. TDP-012... 4a J. Loss Assessment Property Coverage Endorsement No. TDP-013... 4a K. Contract of Sale (Dwellings only) Endorsement No. TDP-015... 4a L. Fair Rental Value Endorsement No. TDP-017 (TDP-1 Only) Fair Rental Value Endorsement No. TDP-018 (TDP-2 Only)... 4a M. Premium Surcharge - Claims - Endorsement No. TDP-020... 4b N. Windstorm, Hurricane and Hail Deductible - Endorsement No. TDP-021... 5 O. Increased Cost of Construction-Building Laws-Forms TDP-026 & TDP-027... 5 V. General Requirements... 5 A. Policy Period... 5 B. Declarations Page... 5 C. Cancellation... 5 D. Deductibles... 5 E. Blanket Insurance... 6 F. Public Housing Authority... 6 G. Property Located in Texas & Other States... 6 H. Transfer or Assignment... 6 I. More Than One Policy... 6 J. Refusal to Renew... 6 VI. Rating Rules... 6 A. Rating Classification... 6 B. Determination of Premium by Peril... 7 C. Additional Premium Modification... 8 D. Change in Policy Form... 9 E. Additional Amounts or Coverage... 9 F. Minimum Premium... 9 G. Rounding of Premium Rule... 9 H. Rate & Premium Computation Rule... 9 I. Interpolation of Premium... 10 J. Change in Hazard... 10 K. Mandatory Roof Covering Credits... 11 VII.Property Protection Program... 18b A. General... 18b B. Eligibility... 18b C. Optional Endorsements... 20 D. Rating... 21 SECOND REPRINTING 1 EFFECTIVE JANUARY 1, 2002 COPYRIGHT -ICT SERVICES, INC. - 2002
D W E L L I N G TEXAS PERSONAL LINES MANUAL VIII. Texas Property Insurance Rating Territories... 22 IX. Rate Tables and Premium Charts... 24 A. Fire Rate Tables... 24 B. Deductible Adjustment Percentage Schedules... 29 C. Extended Coverage Rate Tables... 31 D. Extended Coverage Territory Multipliers... 32 E. Additional Extended Coverage Base Rates and Territory Multipliers... 33 F. Vandalism/Malicious Mischief Premium Chart... 34 G. All Risk Premium Chart... 35 H. Premium Chart Nos. 4-9... 36 I. Premium Chart Nos. 11,12... 37 J. Premium Chart Nos. 13,17,18... 38 X. Texas Dwelling Policy Endorsements and Forms... 39 EFFECTIVE FEBRUARY 1, 1998 2 ORIGINAL PRINTING COPYRIGHT -ICT SERVICES, INC. - 2002
TEXAS PERSONAL LINES MANUAL D W E L L I N G I. GENERAL INSTRUCTIONS III. POLICY COVERAGES The rules, rates and premiums contained in this manual shall govern the writing of the Texas Dwelling Policy. II. A. Benchmark: All rates and/or premiums contained in the Dwelling Manual shall be considered benchmark rates and/or premiums. B. Flex Bands: The flex band approved by the Texas Department of Insurance for residential risks subject to rating under the Dwelling Manual is (minus) -30% to (plus) +30%. The percentages of flexibility filed by individual insurers shall be applied as a final calculation to each coverage or peril for which a separate premium is shown. ELIGIBILITY A. Eligible Property A dwelling policy may be issued to provide insurance for the following residential property and their contents: 1. One or two family dwelling. 2. Duplex. 3. Individually owned townhouse unit. 4. Garage apartment. 5. Mobile or trailer home - stationary with wheels removed and on blocks. 6. Outbuildings and structures used in connection with the occupants listed above. 7. Land and outside site improvements, including, but not limited to landscaping (excluding trees, shrubs, and plants), drives, parking areas, walks, curbs, gutters, and/or underground utilities located outside the perimeter of any building or structure. 8. Residential dwelling property used in part for business purposes if: a. Total area used for business purposes does not exceed 500 square feet. b. Total area used for office, studio, school, or church is not more than 50% of the total area of the building. B. Property Not Eligible 1. Business operations which exceed 500 square feet of the total area of the building. 2. Offices, studios, schools, or church operations which exceed 50% of the total floor area of the building. 3. Houseboats, boat docks, or boat houses which are built on pontoons or floating type supports. 4. Individually owned townhouse units when insured by the townhouse association. 5. Condominium units. 6. Apartment houses containing three or more apartment units. 7. Dwellings in the course of construction. IV. A. Forms Coverage may be provided on a Texas Dwelling Policy using the following coverage forms: 1. Texas Dwelling Policy Form 1 (TDP-1) provides coverage on a named peril basis for dwellings and personal property. 2. Texas Dwelling Policy Form 2 (TDP-2) provides coverage on a broad named peril basis for dwellings and personal property. 3. Texas Dwelling Policy Form 3 (TDP-3) provides coverage on an all risk of physical loss basis for dwellings, subject to certain policy exclusions and broad named perils for personal property. B. Perils The following is a general description of the Perils Insured Against for each specific form referenced in A. above: Perils Insured Against TDP-1 TDP-2 TDP-3 Fire or Lightning YES YES YES Extended Coverage Meaning Smoke, Windstorm, Hurricane or Hail, Explosion, Aircraft, Vehicles, Riot or Civil Commotion Optional* YES YES Vandalism or Malicious Mischief Optional** YES YES Collapse of Building, Accidental Discharge of Water or Steam, Freezing, Breakage of Glass, Falling Objects, Vandalism and Malicious Mischief NO YES YES All Risks with Certain Exceptions NO NO YES (coverage A-Bldg. only) * May only be written with the perils of Fire and Lightning ** May only be written with Extended Coverage. NOTE 1: Perils in addition to fire and lightning must be written for same amount of insurance as the peril of fire. NOTE 2: Perils in addition to extended coverage must be written at the same deductible as the peril of extended coverage and are subject to the extended coverage deductible adjustment percentage schedule. ENDORSEMENTS When additional coverages or endorsements are added to the Texas Dwelling Policy, the endorsement must be attached to the policy. In addition the endorsement number, description, limit of liability (if applicable), and premium charge (if applicable) must be shown on the declarations page under Other Coverages and Endorsements. FIRST REPRINTING 3 EFFECTIVE JANUARY 1, 2002 COPYRIGHT -ICT SERVICES, INC. - 2002
D W E L L I N G TEXAS PERSONAL LINES MANUAL Mandatory Offer Endorsements Mold, Fungi or Other Microbes Coverage - All applicants offered a Texas Dwelling Policy shall also be offered at time of application for insurance the Mold, Fungi or Other Microbes Coverage endorsement. Coverage is available with limits of liability for 25%, 50% and 100% of Coverage A (Dwelling), and Coverage B (Personal Property), Loss of Use, and Fair Rental Value, if applicable. All coverage limits shall be offered to each applicant. Insurers may file to offer a limit of liability selection option in lieu of the 25% and/or 50% selection options subject to prior approval by the Commissioner. However, the 100% limit of liability selection option shall be offered in conjunction with the approved selection option(s). An insurer may not condition the sale of a Texas Dwelling Policy based on an insured's selection option. Exception: An insurer may decline a selection option to purchase the Mold, Fungi or Other Microbes Coverage endorsement if the denial is based upon sound underwriting principles reasonably related to an actual or anticipated mold or other fungi loss exposure for each risk. TDP-004 is applicable to TDP-1 and TDP-2 TDP-005 is applicable to TDP-3 Example: TDP-3 policy with a 50% limit of liability for Mold, Fungi or Other Microbes Coverage: Policy limits of $100,000 Coverage A (Dwelling), $60,000 Coverage B (Personal Property), and $20,000 Loss of Use will have mold, fungi or other microbe limits of $50,000 Coverage (A) Dwelling, $30,000 Coverage B (Personal Property) and $10,000 Loss of Use for loss caused by mold, fungi or other microbes. *NOTE: Current insureds shall be offered the Mold, Fungi or Other Microbes Coverage endorsement upon the first policy renewal after the effective date and implementation of this rule without having to make a request. CONSUMER NOTICE REQUIREMENTS Insurers shall provide a clear explanation of selection options available to each applicant that outlines the available coverage and the premium charge associated with each option. The actual selection of each applicant must be documented with a signed explanation and selection of mold, fungi or other microbes coverage notice. The following sample language will satisfy these requirements: For each selection option contained in this notice, remediation means to treat, contain, remove or dispose of mold, fungi or other microbes beyond that which is required to repair or replace your covered property physically damaged by water or steam. Remediation also includes any testing to detect, measure or evaluate mold, fungi or other microbes and any decontamination of covered property. OPTION 1: You have the option to purchase a policy for $ that provides coverage for ensuing mold, fungi or other microbial losses caused by or resulting from a sudden and accidental discharge, leakage or overflow of water or steam if the sudden and accidental discharge, leakage or overflow of water or steam is covered under the policy. Sudden and accidental includes a physical loss that is hidden or concealed for a period of time until it is detectable. Ensuing mold, fungi or other microbial losses covered under this policy include reasonable and necessary repair or replacement of covered property. However, this policy does not provide coverage for the cost of remediation, including testing of ensuing mold, fungi or other microbes or certain increases in expenses, such as additional living expenses or debris removal, due to the remediation or testing for mold, fungi or other microbes. OPTION 2: You have the option to purchase a policy for $ with a 25% limit of liability for Coverage A (Dwelling) and/or Coverage B (Personal Property) that provides coverage for the cost to remediate (including testing), repair or replace covered property due to loss caused by ensuing mold, fungi or other microbes resulting from water or steam damage if such loss would otherwise be covered. This option also provides 25% of the loss of use limit of liability to pay for additional living expenses or fair rental value if a loss caused by mold, fungi or other microbes that results from a water or steam loss that is covered under your policy makes your residence premises wholly or partially untenantable. OPTION 3: You have the option to purchase a policy for $ that provides the same coverage as option 2, except the limit of liability for Coverage A (Dwelling), Coverage B (Personal Property) and Loss of Use is 50%. OPTION 4: You have the option to purchase a policy for $ that provides the same coverage as option 2, except the limit of liability for Coverage A (Dwelling), Coverage B (Personal Property) and Loss of Use is 100%. Optional Endorsements A. Windstorm, Hurricane and Hail Exclusion Agreement 1. Windstorm, Hurricane and Hail Exclusion Agreement Endorsements. The following endorsements should be used when windstorm, hurricane and hail coverage is to be excluded from a Texas Dwelling Policy, written for property located in an area designated as a catastrophe area, eligible for coverage by Texas Windstorm Insurance Association. EFFECTIVE JANUARY 1, 2002 4 FIRST REPRINTING COPYRIGHT -ICT SERVICES, INC. - 2002
D W E L L I N G TEXAS PERSONAL LINES MANUAL IX. Rate Tables and Premium Charts DWELLING - TABLE A 1-Year Base Fire Rates for Buildings or Contents per $1,000 of Coverage Type of Construction Protection Abestos Clad Class Brick Brick Veneer & Stucco Frame 1 0.38 0.46 1.00 1.50 2 0.38 0.46 1.00 1.50 3 0.52 0.62 1.39 2.04 4 0.61 0.73 1.60 2.37 5 0.63 0.76 1.66 2.48 6 0.76 0.92 2.04 3.00 7 0.87 1.05 2.34 3.44 8 1.02 1.21 2.68 3.98 8B 1.09 1.26 2.81 4.27 9 1.14 1.30 2.93 4.56 10 1.29 1.46 3.30 5.13 * Small Mercantile Occupancy Charge: $1.16 per $1,000 of coverage. DWELLING - TABLE B Low Value Factors* Amount of Coverage Factor $1,000 2.000 1,500 1.800 2,000 1.670 2,500 1.560 3,000 1.460 3,500 1.370 4,000 1.280 5,000 1.160 6,000 1.080 7,000 1.020 7,500 & up 1.000 *The Low Value Factor is an historical multiplier which is applied to the dwelling fire base rate. EFFECTIVE NOVEMBER 1, 2001 24 EFFECTIVE DECEMBER 31, 2001 COPYRIGHT - ICT SERVICES, INC. - 2002 FOURTH REPRINTING
TEXAS PERSONAL LINES MANUAL D W E L L I N G X. TEXAS DWELLING POLICY ENDORSEMENTS AND FORMS Listed below are the applicable forms and endorsements for use with the Texas Dwelling Policy. The abbreviated description of the endorsement following the full title (description) of the endorsement should be used when showing the endorsement description on the declarations page of the policy. Endorsement Description Abbreviated Edition Number Description Date Texas Dwelling Policy Form 1 TDP-1 1-1-02 Texas Dwelling Policy Form 2 TDP-2 1-1-02 Texas Dwelling Policy Form 3 TDP-3 1-1-02 TDP-001 Windstorm, Hurricane & Hail Exclusion Agreement Wind., Hurr., & Hail Excl. 1-1-94 (Form 1 & 2) TDP-001A Windstorm, Hurricane & Hail Exclusion Agreement Wind., Hurr., & Hail Excl. 1-1-94 (Form 3 only) TDP-002 Replacement of Personal Property Repl. of Pers. Prop. 10-2-93 (Form 3 only) TDP-003 Exclusion of Residential Community Property Clause Excl. of Res. Comm. Prop. 7-8-92 TDP-004 Mold, Fungi or Other Microbes Coverage Mold, Fungi or Microbes 1-1-02 (Forms TDP-1 and TDP-2) TDP-004A Dwelling Amendatory Mandatory Endorsement Dw. Amend. Mand. 1-1-02 (Forms TDP-1 and TDP-2) TDP-005 Mold, Fungi or Other Microbes Coverage Mold, Fungi or Microbes 1-1-02 (Form TDP-3) TDP-005A Dwelling Amendatory Mandatory Endorsement Dw. Amend. Mand. 1-1-02 (Form & TDP-3) TDP-007 Additional Named Insured (Personal Property only) Addl. Insd. (Per. Prop.) 7-8-92 TDP-008 Agreed Amount on Dwelling (For Use with Form 3-only) Agrd. Amt. Dwg. 7-8-92 TDP-009 Residence Glass Coverage Res. Glass 7-8-92 TDP-010 Loss Payable Clause Loss Pay. 7-8-92 TDP-011 Vacancy Clause Vacancy 7-8-92 TDP-012 Miscellaneous Property Schedule Misc. Prop. 7-8-92 TDP-013 Loss Assessment Property Coverage Loss Asses. Prop. Cov. 7-8-92 TDP-014 Sworn Statement in Proof of Loss Proof of Loss 10-1-99 TDP-015 Contract of Sale (Applies to Dwellings only) Contract of Sale 7-8-92 TDP-017 Fair Rental Value (Form 1 only) Rental Value (Form 1) 7-8-92 TDP-018 Fair Rental Value (Form 2 only) Rental Value (Form 2) 7-8-92 TDP-020 Premium Surcharge-Claims Premium Surcharge 7-8-92 TDP-021 Windstorm, Hurricane and Hail Deductible Wind., Hurr., & Hail Ded. 7-8-92 (Applicable Only to Extended Coverage Territories 1, 8, 9, 10 & 11) TDP-022 Exclusion of Cosmetic Damage to Roof Coverings Excl. Cos. Dam. Roof Cov. Hail 5-2-98 Caused by Hail TDP-024 Dwelling Amendatory Mandatory Endorsement for Inc. Cost Const. Bldg. Laws 4-1-01 Increased Cost of Construction-Building Laws (Forms 1 & 2) TDP-025 Dwelling Amendatory Mandatory Endorsement for Inc. Cost Const. Bldg. Laws 4-1-01 Increased Cost of Construction-Building Laws (Form 3) TDP-026 Increased Cost of Construction-Building Laws Inc. Costs Const. Bldg. 4-1-01 (Forms TDP-1 and TDP-2 only) TDP-027 Increased Cost of Construction-Building Laws Inc. Costs Const. Bldg. 4-1-01 (Form TDP-3 only) (PPP)TDP-031 Perils of Accidental Discharge, Leakage, or Overflow of Acc. Discharge water 1-1-97 Water or Steam and Freezing (PPP)TDP-032 Perils of Collapse of Building, Breakage of Glass, and Collapse, Breakage & Falling 1-1-97 Falling Objects Objects (PPP)TDP-033 Theft Theft 1-1-97 (PPP)TDP-034 Additional Living Expense Add'l. Liv. Exp. 1-1-97 (PPP)TDP-035 Replacement Cost Coverage A (Dwelling) Replace Cost Cov. A 1-1-97 (PPP)TDP-036 Replacement Cost of Personal Property Replace Cost Per. Prop. 1-1-97 (PPP)TDP-037 Agreed Amount on Dwelling Agrd. Amt. Dwg. 1-1-97 (PPP)TDP-038 Miscellaneous Property Schedule Misc. Prop. Sch. 1-1-97 FOURTH REPRINTING 39 EFFECTIVE JANUARY 1, 2002 COPYRIGHT - ICT SERVICES, INC. - 2002
Residential Property Forms Homeowners & Dwelling
Table of Contents - Residential Property Forms Homeowners Page Number Homeowners Form A HO-A 1 Homeowners Form B HO-B 13 Homeowners Form C HO-C 26 Homeowner Tenant Form B HO-BT 40 Homeowner Tenant Form C HO-CT 50 Homeowner Condo, Form B HO-CON-B 61 Homeowner Condo, Form C HO-CON-C 72 Replacement of Personal Property HO-101 84 Agreed Amount on Dwelling (HO-B & HO-C only) HO-102 84 Residence Glass Coverage HO-105 85 Increased Limit on Jewelry, Watches & Furs HO-110 86 Increased Limit on Business Personal Property HO-111 86 Increased Limit on Money/Bank Cards HO-112 86 Increased Limit on Bullion/Valuable Papers HO-113 87 Television and Radio Antenna HO-120 87 Windstorm Coverages for Greenhouses HO-121 87 Windstorm Coverages for Cloth Awnings HO-122 88 Physician s, Surgeon s & Dentist s Outside Coverage HO-125 88 Personal Computer Coverage HO-126 88 $250 Theft Deductible HO-130 89 Homeowners Amendatory Mandatory Endorsement for Increased HO-134 89 Cost of Construction-Building Laws Increased Costs of Construction - Building Laws (Forms HO-A, HO-B and HO-C only) HO-135 90 Windstorm, Hurricane & Hail Exclusion Agreement (Forms HO-140 90 HO-A, HO-B, HO-C,HO-CON-B, HO-CON-C only) Windstorm, Hurricane & Hail Exclusion Agreement (Forms HO-BT, HO-CT only) HO-140B 91 Exclusion of Residential Community Property Clause HO-142 91 Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail HO-145 92 Scheduled Personal Property HO-160 93 Homeowners Amendatory Mandatory Endorsement (Form HO-A) HO-161A 95 Homeowners Amendatory Mandatory Endorsement (Form HO-B) HO-162A 96 Homeowners Amendatory Mandatory Endorsement (Form HO-C) HO-163A 96 Homeowners Amendatory Mandatory Endorsement (Form HO-BT) HO-164A 97 Homeowners Amendatory Mandatory Endorsement (Form HO-B-CON) HO-165A 98 Homeowners Amendatory Mandatory Endorsement (Form HO-CT) HO-166A 98 Homeowners Amendatory Mandatory Endorsement (Form HO-C-CON) HO-167A 99 Mold, Fungi or Other Microbes Coverage (Form HO-A) HO-161 100 Mold, Fungi or Other Microbes Coverage (Form HO-B) HO-162 101 Mold, Fungi or Other Microbes Coverage (Form HO-C) HO-163 101 Mold, Fungi or Other Microbes Coverage (Form HO-BT) HO-164 102 Mold, Fungi or Other Microbes Coverage (Form HO-B-CON) HO-165 103 Mold, Fungi or Other Microbes Coverage (Form HO-CT) HO-166 103 Mold, Fungi or Other Microbes Coverage (Form HO-C-CON) HO-167 104 Additional Extended Coverage (Form A Only) HO-170 105 Unit Owners Outbuilding & Other Structures Coverage HO-180 105 Sworn Statement in Proof of Loss HO-190 106 Personal Injury Coverage HO-201 108 Office, Private School or Studio Section II Liability HO-205 109 Farmers Personal Liability HO-210 109 Watercraft Liability Coverage HO-215 114 Business Pursuits Liability Coverage HO-220 115 Additional Premises Liability Coverage HO-225 115 Additional Insured HO-301 116 Amended Definition of Residence Premises HO-305 117 Townhouse Loss Assessment Coverage HO-310 117 Neighborhood Loss Assessment Coverage HO-315 117 General Change Endorsement HO-320 117 Premium Surcharge-Claims HO-330 118 Unit Owners Rental to Others HO-380 119 1 COPYRIGHT - ICT SERVICES, INC. - 2002
Table of Contents - Residential Property Forms Homeowners Page Number Unit Owners Rental to Others HO-381 119 Condominium Loss Assessment Coverage HO-382 119 Homeowners Amendatory Endorsement HO-230 116 Exclusion of Coverages (PPP)HO-700 120 Accidental Discharge, Leakage, or Overflow of Water or Steam and Freezing (PPP)HO-702 120 Collapse of Building, Breakage of Glass, and Falling Objects (PPP)HO-703 120 Replacement Cost Coverage A (Dwelling) (PPP)HO-708 121 Replacement Cost for Personal Property (PPP)HO-709 122 Agreed Amount on Dwelling (PPP)HO-710 123 Increased Limit on Jewelry, Watches and Furs (PPP)HO-711 123 Dwelling Texas Dwelling Policy Form 1 TDP-1 1 Texas Dwelling Policy Form 2 TDP-2 8 Texas Dwelling Policy Form 3 TDP-3 15 Windstorm, Hurricane & Hail Exclusion Agreement (Form 1 & 2) TDP-001 23 Windstorm, Hurricane & Hail Exclusion Agreement (Form 3 only) TDP-001A 23 Replacement of Personal Property (Form 3 only) TDP-002 23 Exclusion of Residential Community Property Clause TDP-003 24 Mold, Fungi or Other Microbes Coverage (Forms TDP-1 and TDP-2) TDP-004 25 Dwelling Amendatory Mandatory Endorsement (Forms TDP-1 and TDP-2) TDP-004A 25 Mold, Fungi or Other Microbes Coverage (Form TDP-3) TDP-005 26 Dwelling Amendatory Mandatory Endorsement (Form & TDP-3) TDP-005A 26 Additional Named Insured (Personal Property only) TDP-007 27 Agreed Amount on Dwelling (For Use with Form 3-only) TDP-008 28 Residence Glass Coverage TDP-009 28 Loss Payable Clause TDP-010 29 Vacancy Clause TDP-011 29 Miscellaneous Property Schedule TDP-012 30 Loss Assessment Property Coverage TDP-013 30 Sworn Statement in Proof of Loss TDP-014 31 Contract of Sale (Applies to Dwellings only) TDP-015 32 Fair Rental Value (Form 1 only) TDP-017 32 Fair Rental Value (Form 2 only) TDP-018 32 Premium Surcharge-Claims TDP-020 33 Windstorm, Hurricane and Hail Deductible TDP-021 33 (Applicable Only to Extended Coverage Territories 1, 8, 9, 10 & 11) Exclusion of Cosmetic Damage to Roof Coverings Caused by Hail TDP-022 34 Dwelling Amendatory Mandatory Endorsement for Increased Cost TDP-024 34 of Construction-Building Laws (Forms 1 & 2) Dwelling Amendatory Mandatory Endorsement for Increased Cost TDP-025 35 of Construction-Building Laws (Form 3) Increased Cost of Construction-Building Laws (Forms TDP-1 and TDP-2 only) TDP-026 36 Increased Cost of Construction-Building Laws (Form TDP-3 only) TDP-027 36 Perils of Accidental Discharge, Leakage, or Overflow of Water (PPP)TDP-031 37 or Steam and Freezing Perils of Collapse of Building, Breakage of Glass, and Falling Objects (PPP)TDP-032 38 Theft (PPP)TDP-033 38 Additional Living Expense (PPP)TDP-034 38 Replacement Cost Coverage A (Dwelling) (PPP)TDP-035 39 Replacement Cost of Personal Property (PPP)TDP-036 40 Agreed Amount on Dwelling (PPP)TDP-037 41 Miscellaneous Property Schedule (PPP)TDP-038 41 COPYRIGHT - ICT SERVICES, INC. - 2002 2
Homeowners Forms
RESIDENTIAL PROPERTY FORMS HOMEOWNERS FORM A H O M E O W N E R S We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. In this policy, you and your refer to the named insured shown on the declarations page and the spouse if a resident of the same household. We, us and our refer to the company providing this insurance. In addition, certain words and phrases are defined as follows: 1. Bodily injury means bodily harm, sickness or disease. This includes required care, loss of services and death that results. 2. Business includes trade, profession or occupation. 3. Business day, when used in this policy means a day other than a Saturday, Sunday or holiday recognized by the state of Texas. 4. Insured means you and residents of your household who are: a. your relatives; or b. other persons under the age of 21 and in the care of any person named above. Under Section II Liability, insured also means: c. any person or organization legally responsible for animals or watercraft to which this policy applies. You or a person included in 4.a. or 4.b. above must own the animal or watercraft. A person or organization using or having custody of these animals or watercraft without consent of the owner is not an insured. d. With respect to any vehicle to which this policy applies: (1) any employee of an insured while engaged in the employment of the insured; or (2) any other person using the vehicle on an insured location with your consent. 5. Insured location means: a. the residence premises. b. the part of other premises, other structures and grounds you use as a residence and: COVERAGE A (DWELLING) We cover: 1. the dwelling on the residence premises shown on the declarations page including structures attached to the dwelling. 2. other structures on the residence premises set apart from the dwelling by clear space. This includes struc- AGREEMENT DEFINITIONS SECTION I - PROPERTY COVERAGE (1) which is shown on the declarations page; or (2) which you acquire during the policy period for your use as a residence. c. any premises you use in connection with a premises in 5.a. or 5.b. above. d. any part of a premises: (1) not owned by an insured; and (2) where an insured is temporarily residing. e. vacant land, other than farm land, owned by or rented to an insured. f. land owned by or rented to an insured on which a one or two family dwelling is being built as a residence for an insured. g. individual or family cemetery plots or burial vaults of an insured. h. any part of a premises occasionally rented to an insured for other than business use. 6. Occurrence means an accident, including exposure to conditions, which result in bodily injury or property damage during the policy period. 7. Property damage means injury to, destruction of, or loss of use of property. 8. Residence employee means an employee of an insured who performs duties related to the ownership, maintenance or use of the residence premises, including maintenance or use of a motor vehicle. This includes employees who perform similar duties elsewhere for an insured. This does not include employees while performing duties related to the business of an insured. 9. Residence premises means the residence premises shown on the declarations page. This includes the one or two family dwelling, including other structures, and grounds where an insured resides or intends to reside within 60 days after the effective date of this policy. tures connected to the dwelling by only a fence, utility line or similar connection. The total limit of liability for other structures is the limit of liability shown on the declaration page or 10% of the Coverage A (Dwelling) limit of liability, whichever is greater. This is additional insurance and does not reduce the Coverage A (Dwelling) limit of liability. We do not cover other structures: 1 COPYRIGHT - ICT SERVICES, INC. - 2002
RESIDENTIAL PROPERTY FORMS HOMEOWNERS FORM B H O M E O W N E R S AGREEMENT We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. DEFINITIONS In this policy, you and your refer to the named insured shown on the declarations page and the spouse if a resident of the same household. We, us and our refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows: 1. Bodily injury means bodily harm, sickness or disease. This includes required care, loss of services and death that results. 2. Business includes trade, profession or occupation. 3. Business day, when used in this policy means a day other than a Saturday, Sunday or holiday recognized by the state of Texas. 4. Insured means you and residents of your household who are: a. your relatives; or b. other persons under the age of 21 and in the care of any person named above. Under Section II Liability, insured also means: c. any person or organization legally responsible for animals or watercraft to which this policy applies. You or a person included in 4.a. or 4.b. above must own the animal or watercraft. A person or organization using or having custody of these animals or watercraft without consent of the owner is not an insured. d. With respect to any vehicle to which this policy applies: (1) any employee of an insured while engaged in the employment of the insured; or (2) any other person using the vehicle on an insured location with your consent. 5. Insured location means: a. the residence premises. b. the part of other premises, other structures and grounds you use as a residence and: (1) which is shown on the declarations page; or (2) which you acquire during the policy period for your use as a residence. c. any premises you use in connection with a premises in 5.a. or 5.b. above. d. any part of a premises: (1) not owned by an insured; and (2) where an insured is temporarily residing. e. vacant land, other than farm land, owned by or rented to an insured. f. land owned by or rented to an insured on which a one or two family dwelling is being built as a residence for an insured. g. individual or family cemetery plots or burial vaults of an insured. h. any part of a premises occasionally rented to an insured for other than business use. 6. Occurrence means an accident, including exposure to conditions, which results in bodily injury or property damage during the policy period. 7. Property damage means injury to, destruction of, or loss of use of property. 8. Residence employee means an employee of an insured who performs duties related to the ownership, maintenance or use of the residence premises, including maintenance or use of a motor vehicle. This includes employees who perform similar duties elsewhere for an insured. This does not include employees while performing duties related to the business of an insured. 9. Residence premises means the residence premises shown on the declarations page. This includes the one or two family dwelling, including other structures, and grounds where an insured resides or intends to reside within 60 days after the effective date of this policy. COVERAGE A (DWELLING) We cover: 1. the dwelling on the residence premises shown on the declarations page including structures attached to the dwelling. 2. other structures on the residence premises set apart from the dwelling by clear space. This includes struc- SECTION I - PROPERTY COVERAGE tures connected to the dwelling by only a fence, utility line or similar connection. The total limit of liability for other structures is the limit of liability shown on the declaration page or 10% of the Coverage A (Dwelling) limit of liability, whichever is greater. This is additional insurance and does not reduce the Coverage A (Dwelling) limit of liability. We do not cover other structures: -13- COPYRIGHT - ICT SERVICES, INC. - 2001