What Does Your Insurance Policy Mean?
The Insurance Services Office (ISO) Special Homeowners Policy was designed to provide comprehensive personal liability protection and various levels of direct physical loss coverage to
residential property owner/occupants or to personal property (tenants). This package of property and liability coverages allows a typical insured to address the common exposures of owning or
renting a residence.
POLICY CONSTRUCTION
ISO homeowners coverage is provided by issuing the following:
• Applicable Insurer's Declarations
• ISO HO Base Policy Form
• All mandatory state-specific forms and endorsements
PRINCIPAL COVERAGES
Coverage A - Dwelling (inapplicable to HO 00 04 and HO 00 06)—This portion of the policy protects the residence premises and attached structures. Coverage extends to materials or supplies that are located on or next to the residence. However, the material must be meant for constructing or modifying the residence.
Coverage B - Other Structures—Other structures on the insured premises are protected under this coverage part if they are separated from the dwelling by a clear space. However, any business use of such structures bars coverage.
Coverage C - Personal Property—Personal property owned or used by an insured is covered anywhere in the world. Protection may be extended to cover the property of others, a guest or a residence employee if that property is at the residence premises occupied by an insured.
Personal Property Special Limits—Modest sub-limits apply to classes of property that are more susceptible to loss such as money, securities, business property, jewelry, fine art, collectibles, silverware, watches, coins, portable electronics and other similar property.
Coverage D - Loss Of Use Coverage—If a covered loss makes that part of the residence premises unfit for living, the policy provides coverage for certain increases in living expenses and, if any part of the premises is rented out, for any loss of rental income.
The Special Form policy provides several additional coverage's such as Debris Removal; Reasonable Repairs; Trees, Shrubs and Other Plants; Fire Department Service Charge; Property Removed; Credit Card, Fund Transfer Cards; Loss Assessment; Collapse; Glass or Safety Glazing Material; and Landlord's Furnishings
Coverage E - Personal Liability—The policy protects against claims or suits involving an insured for damages arising from his or her ownership or use of the insured residence as well as from other personal incidents of damage or injury involving third parties. The policy also provides a legal defense even if the suit is groundless, false or fraudulent. The insurer has full authority to investigate and settle any claim or suit that it decides is appropriate.
Coverage F - Medical Payments To Others—The insurer will pay the necessary medical expenses incurred within three years from the date of an accident causing bodily injury to a third party. Medical expenses include: medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services.