HO-2 (broad form) covers the dwelling, other structures, and personal property on a named perils basis. It can be used by homeowners who desire basic coverage on the home and personal property.
HO-3 (special form) covers the dwelling and other structures on a risk-of-direct-physical loss basis. All direct physical losses are covered except those losses specifically excluded. Personal property, however, is covered on a named perils basis.
HO-3 is designed for homeowners who desire broader coverage than that provided by HO-2.
HO-4 covers the personal property of renters and also provides personal liability insurance; it is designed for renters. Up to 10 percent of the insurance on personal property can be applied to any building additions or alterations by the insured.
HO-5 (comprehensive form) provides open perils coverage ("all-risks coverage") on the dwelling, other structures, and personal property. All direct physical losses are covered except those losses specifically excluded.
HO-5 is designed for insureds who want “all risks” coverage on both the dwelling and personal property.
HO-6 (Unit-Owners Form) covers personal property on a named perils basis. A minimum of $5000 of insurance is also provided on the condominium unit that covers improvements and additions and certain other types of property.
HO-8 is designed for insureds who have older homes with a replacement cost exceeding market value.
Once the insured has selected the amount of insurance on the dwelling (Coverage A), all other Section I coverages are percentages of Coverage A.
The major coverages are listed as follows: a. Coverage A- dwelling b. Coverage B- other structures c. Coverage C- personal property d. Coverage D- loss of use e. Additional coverages
Coverage A- Dwelling. It covers the dwelling and attached structures, as well as materials and supplies used to construct, repair, or alter the dwelling or other structures.
Coverage B- Other Structures. Other structures include a detached garage, tool shed, or horse stable. The amount of insurance is 10 percent of Coverage A.
Coverage C- Personal Property. Personal property is covered anywhere in the world. The amount of insurance under Coverage C is 50 percent of Coverage A, which can be increased if desired.
However, if personal property is usually located at another residence, such as a cabin or vacation home, the off-premises coverage is limited to 10 percent of Coverage C, or $1000, whichever is greater. Special limits apply to items that are particularly subject to theft.
Coverage D- Loss of Use. The Coverage D amount is 30 percent of Coverage A. Three benefits are provided - additional living expenses, fair rental value, and prohibited use.
Additional coverages include: -cost of debris removal; -repairs needed to prevent further damage; limited coverage of trees, shrubs, plants, and lawns; -up to $500 for a fire department service charge; -loss of credit cards, -electronic fund transfer cards, -forgery of checks, and counterfeit money up to $500;
-broad coverage of property removed from premises threatened by a covered peril for up to 30 days; -loss assessment charge up to $1000; -certain collapse losses; -coverage for glass or safety glazing material; -coverage for landlord's furnishings up to $2500; -limited coverage for increased construction costs because of some ordinance or law; -and coverage of grave markers up to $5000.
A deductible of $250 applies to each covered loss. The deductible can be increased with a reduction in premiums.
Under Coverages A and B, all direct physical losses are covered except certain losses specifically excluded.
Under Coverage C, personal property is covered only for certain named perils.
Freezing of plumbing, heating, air conditioning, or automatic fire protection sprinkler system unless heat is maintained or the water supply is shut off and drained. However, if the building has an automatic sprinkler system, the insured must continue the water supply and maintain heat in the building.
Damage to pavements, patios, swimming pools, and similar structures from ice, water pressure, freezing, and thawing
Vandalism, malicious mischief, and glass breakage if the dwelling is vacant for more than 60 consecutive days immediately before the loss
Certain additional exclusions also apply to Coverages A, B, and C. Losses resulting directly or indirectly from any of the following are excluded:
1. Ordinance or law • 2. Earth movement • 3. Water damage, such as flood, • sewer back up, and seepage • 4. Power failure • 5. Neglect of the insured to save and • preserve the property after a loss • 6. War
7. Nuclear hazard 8. Intentional loss 9. Government action 10. Weather conditions that otherwise are excluded 11. Failure to act by any person, group, or government body 12. Faulty, inadequate, or defective planning and design