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Tailoring to Coverage Needs

Summary: The coverages of the standard homeowners forms (Forms HO 00 02, 03, 04, 05, 06, and 08) are designed to provide the kinds of insurance protection that most homeowners will need. But the needs of individual insureds can diverge, and so endorsements are used to tailor coverage to meet these needs. Additionally, insurers may use endorsements to limit coverage, as when the windstorm or hail exclusion endorsement is attached to coastal homeowners policies.

The endorsements discussed here are those under the jurisdiction of Insurance Services Office (ISO). They do not constitute the extent of tailoring possible with respect to homeowners forms. The introduction in the ISO homeowners manual to the program’s general rules state that “in all cases not specifically provided for in this manual,” the rules, rates, forms, and endorsements of individual insurers govern each coverage. This makes it possible for insurers to develop special endorsements as the need arises, assuming, or course, that the proposed risk is considered insurable and that an appropriate premium can be obtained.

Comments relating to individual endorsements below are based on form designations and language of the 2000 ISO homeowners program unless otherwise indicated. (The edition date of the 2000 endorsements is generally 10 00; that of the 1991 endorsements is generally 04 91.) Differences from the 1991 program in language or coverage provisions are noted. Endorsements limited to one or two states have not been included.

For a discussion of condominium forms HO 17 31, open perils on coverage C—unit owners, HO 17 32, unit owners coverage A (building), HO 17 33, unit owners rental to others, and HO 17 34, unit owners modified other insurance and service agreement condition, see [IDL:Homeowners Form HO 00 06—Insurance for Unit Owners] .

The endorsements are discussed in alphabetical order.

Alphabetical Guide to Endorsements: Actual cash value loss settlement HO 04 81Actual cash value loss settlement windstorm/hail loss to roof HO 04 93Additional insured (residence premises) HO 04 41Additional insured—student living away from the residence premises HO 05 27Additional interests (residence premises) HO 04 10Additional limits of liability for coverages A, B, C and D HO 04 11Additional residence rented to others (1—4 families) HO 24 70Assisted living care coverage HO 04 59Building additions and alterations (other residence) HO 04 49Building additions and alterations (increased limit form HO 00 04) HO 04 51Business pursuits HO 24 71Coverage B—other structures away from the residence premises HO 04 91Coverage C increased special limits of liability HO 04 65Coverage C increased special limits of liability (HO 00 04, HO 00 05, HO 00 06) HO 04 66Credit card, electronic fund transfer card, etc. (increased limit) HO 04 53Deferred premium payment HO 04 18Earthquake HO 04 54Extended theft coverage for residence premises occasionally rented to others HO 05 41Farmers personal liability HO 24 73Fire department clause HO 04 85Functional replacement cost loss settlement etc. HO 05 30Home business insurance coverage HO 07 01Home day care coverage endorsement HO 04 97Identity fraud expense coverage HO 04 55Incidental farming personal liability HO 24 72Incidental low power recreational motor vehicle HO 24 13Increased limits on business property HO 04 12Inflation guard endorsement HO 04 46Landlord’s furnishings (forms HO 00 02, HO 00 03, and HO 00 05 only) HO 05 46Limited fungi, wet or dry rot, or bacteria coverage HO 04 26, etc.Livestock collision coverage HO 04 52Loss assessment coverage HO 04 35Loss assessment coverage for earthquake HO 04 36Multiple company insurance HO 04 78No section II—liability coverages for home day care, etc. HO 04 96Ordinance or law increased amount of coverage HO 04 77Other members of your household HO 04 58Other structures on the residence premises (increased limit) HO 04 48Owned motorized golf cart physical loss coverage HO 05 28Owned snowmobile HO 24 64Permitted incidental occupancies (residence premises) HO 04 42Permitted incidental occupancies (other residence) HO 24 43Personal injury HO 24 82Personal property at other residences (increased limit) HO 04 50Personal property replacement cost loss settlement HO 04 90 Premises alarm or fire protection systems HO 04 16Property remediation/limited escaped fuel liability HO 05 72, etc.Property remediation/limited lead and escaped fuel liability HO 05 80, etc.Refrigerated property coverage HO 04 98Replacement cost loss settlement for certain non-building structures etc. HO 04 43Residence held in trust HO 05 43Residence premises—three or four family HO 04 44Residence rental theft HO 04 80Scheduled personal property endorsement HO 04 60; HO 04 61Section II—limited coverage for year 2000 computer etc. HO 04 15Sections I and II exclusions for computer-related damage or injury HO 04 13Sinkhole collapse HO 04 99Special computer coverage HO 04 14Special loss settlement HO 04 56Special personal property coverage (HO 00 03 only) HO 00 15Special personal property coverage (HO 00 04 only) HO 05 24Specific structures away from the residence premises HO 04 92Specified additional amount of insurance for coverage A—dwelling HO 04 20Structures rented to others (residence premises) HO 04 40Theft coverage increase (Form HO 00 08) HO 04 30Three or Four Family Dwelling Premises Liability (HO 00 04) HO 24 74Water back up and sump discharge or overflow HO 04 95Watercraft HO 24 75Windstorm or hail exclusion HO 04 94

Actual Cash Value Loss Settlement

HO 04 81 10 00

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