HO-3

The HO-3 is plainly and simply written as are all forms and endorsements in the homeowners program. The first page of the form contains definitions of words and phrases used throughout.

Section I - Property Coverages

Coverage A - Dwelling.

The coverage provided by this part of the policy is expressed as follows.

We cover:

1. The dwelling on the residence premises shown in the Declarations, including structures attached to the dwelling.

The "dwelling" by definition includes everything attached to it, such as plumbing, heating and cooling equipment, lighting fixtures, permanently affixed wall to wall carpeting, canopies, patio covering and screening and garages. Detached structures are a subject for Coverage B, and property not affixed to the realty is a subject for Coverage C.

Coverage B - Other Structures.

Property on a residence premises defined as other structures includes a garage, private guest house, swimming pool, fence, tool shed, pump, tennis court and greenhouse. Other structures that are buildings should be evaluated at current replacement cost when Coverage A limits are determined.The 10 percent of Coverage A that is Req-Auto.htmmatically provided as a Coverage B limit may not be increased, but specific coverage on scheduled structures may be obtained with an endorsement.Coverage B does not apply to structures on the residence premises that are rented to others.

Coverage C - Personal Property.

The following states the protection provided by this coverage.

We cover personal property owned or used by an Insured.The definitions below are from the policy.

"Insured" means you and residents of your household who are:

1. your relatives; or
2. other persons under the age of 21 and in the care of any person named above.
3. "residence employee" means: an employee of an insured whose duties are related to the maintenance or use of the residence premises, including household or domestic services; or d. one who performs similar duties elsewhere not related to the business of an insured. The 50 percent of Coverage A that Req-Auto.htmmatically applies as a Coverage C limit may be increased to any desired amount. The 50 percent is an arbitrary figure deemed to be appropriate for the majority of homeowners. Insureds who can be persuaded to complete a household inventory may find their actual personal property values total more than 50 percent of their Coverage A limit and may desire a higher Coverage C limit.Under the basic forms, personal property should be evaluated by insureds at actual cash value. Replacement Cost coverage is available as an option by attachment of an endorsement.

Special Limits of Liability

These limits do not increase the Coverage C limit of liability. There is a special limit for each following numbered category below and is the total limit for each loss for all property in that category. Limits vary from company to company.Additional coverage can be purchased by adding an endorsement.1. Money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum coins and medals.
2. Watercraft including their trailers, furnishings, equipment and outboard motors.
3. Trailers not used with watercraft.
4. Grave markers.
5. Jewelry, watches, furs, precious and semi-precious stones.
6. Firearms
7. Silverware, silver-plated ware, goldware, gold plated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter.
8. Property on the residence premises used at any time or in any manner for any business purpose.
9. Property away from the residence premises used at any time or in any manner for any business purpose.
If the maximum HO limit on jewelry and furs is insufficient to cover the insured's exposure on such property, "All risks" coverage may be afforded by scheduling items, giving specific amount on each, by endorsement.- Scheduled Personal Property Endorsement. Silverware, photography equipment, musical instruments, golfer's equipment, fine arts and stamp or coin collections may also be covered under this "all risks" endorsement

Coverage D - Loss of Use.

Coverage for loss of use is explained in the following policy language.

These limits do not increase the Coverage C limit of liability. There is a special limit for each following numbered category below and is the total limit for each loss for all property in that category. Limits vary from company to company.Additional coverage can be purchased by adding an endorsement.1. If a loss covered under the Section makes that part of the residence premises where you reside not fit to live in, we cover at your choice either of the following.
a. Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that you household can maintain its normal standard of living; or
b. Fair Rental Value, meaning the fair rental value of that part of the residence premises where you reside less any expenses that do not continue while the premises is not fit to live in.Payment under a or b will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere.In summary, Coverage D covers extraordinary living expenses of the insured family for the period required to relocate or to repair or rebuild the residence if it becomes uninhabitable because of damage from an insured peril.If a part of the premises covered by the policy is rented or held for rental, the insured is also reimbursed for the fair rental value for the same period.

The 20 percent of Coverage A that Req-Auto.htmmatically applies for Coverage D is usually adequate for the typical insured. The limit may be increased to any desired amount. This might be considered in special situations such as a large family.

Coverage E - Personal Liability.

If a claim is made or a suit brought against an insured for damages because of bodily injury or property damage caused by an occurrence to which this coverage applies,1. The company will pay up to our limit of liability for the damages for which the insured is legally liable. Damages include prejudgment interest awarded against the insured.2. The company will provide a defense at the company's expense by counsel of their choice, even if the suit is groundless, false or fraudulent. They may investigate and settle any claim or suit that they decide is appropriate. Their duty to settle or defend ends when the amount they pay for damages resulting from the occurrence equals the limit of liability.

"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.

Coverage F - Medical Payments to Others.

The insured agreement for Coverage F - Medical Payments to Others reads as follows:

In summary, Coverage D covers extraordinary living expenses of the insured family for the period required to relocate or to repair or rebuild the residence if it becomes uninhabitable because of damage from an insured peril.

We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing bodily injury. Medical expenses means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household.

 
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