Other Residential Insurance and Dwelling Policies Dwelling Policies Mobile home Coverage Flood Insurance Insurance for

typical Property Loss Exposures

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Why Other Insurance Policies when there are HO Series?

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Need for Other Insurance Policies

Unoccupied Owners For those who lives in Mobile Homes or Manufactured homes Those who live on Farms, Ranches Flood Cause of Loss Residential properties that doesnt meet underwriting Guidelines for standard Coverage Unavailability and unaffordability of Insurance Value of the dwelling is far below the Minimum Limit available with Homeowner Policies

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Dwelling Policies
Covers 1-4 Family dwellings whether owner occupied or rented Dwelling in the course of construction Mobile homes at a permanent location House Boats in some states

Certain Incidental business Occupancies, if they are operated by the owner occupied or by a tenant
Dwelling policies are based on the Dwelling forms ( DP-x series) developed by ISO and AAIS

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ISO Dwelling Policies

DP-1 Basic form DP-2 Broad Form DP-3 Special form All Dwelling policy forms dont provide theft coverage Limits are not automatically included

Coverage A - Dwelling
Coverage B - Other Structures
Coverage C - Personal Property Coverage D - Fair Rental Value Coverage E - Additional Living Expenses

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ISO Dwelling Policies

Coverage A- Dwelling
o Covers Dwelling on described location shown in declarations

o It must be principally used for dwelling purposes

o Building Equipment and Outdoor equipment, if not covered under Coverage C, then they are automatically covered under Coverage A

Coverage B- Other Structures

o It is same as like your HO-3 Policy. o Gravemarkers and Mausoleums are excluded. In HO-3 they are covered for $5000

Coverage C Personal Property

o Coverage applies when the property is on described location o No Special Limits to jewellery, furs, firearms etc o Money exclusion for Coverage o Exclude boats other than rowboats and Canoes o Theft is excluded except by burglars o If Insured is a land lord then he can purchase Coverage A and B and he need not choose coverage C. In HO-3 you dont have such option.

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ISO Dwelling Policies

Coverages D and E combined together can resemble Coverage D Loss of Use in HO-3

Coverage D- Fair Rental Value

Coverage E- Additional Living Expenses

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ISO Dwelling Policies

Additional Coverages
o Almost same as homeowner policies except the following are not automatically covered

Loss Assessment
Landlords furnishings Credit Card, transfer Cards, Forger and Counterfeit Money

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ISO Dwelling Policies

Additional Coverages
o Debris Removal Included in Coverage A Limit o Improvements, alterations and additions 10% of Coverage C o Worldwide Coverage 10% of Coverage C Limit Except row boats and canoes o Fair Rental Value and Additional Living Expenses 20% of Coverage A o Reasonable Repairs to protect further loss o Property Removed

30 Days for DP-2 and DP-3 o Trees, shrubs, and other plants Same as homeowner Policies o Fire Department Service charge-Same as homeowner Policies
o Collapse (Coverage C Personal Property Perils; Decay that is hidden from view; Hidden Insects or Vermin Damage; Weight of Contents, equipment, animals or people, weight of rain collecting on roof, use of defective materials or methods of construction o Glass or Safety Glazing Material ( Except - Dwelling is vacant for 60 Days) o Ordinance or Law 10% of coverage A or 10% of coverage B

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ISO Dwelling Policies

Dwelling Policies General Exclusions

o Ordinance or Law except as provided in the other coverages section

o Earthquake
o Water Damage such as Floods and backup of sewers and drains o Power failures that occur off the described location o Neglect on the part of the insured o War o Nuclear Hazard o Intentional Loss o Weather conditions that contribute to any of the preceding excluded causes of loss o Acts or decisions of other persons, groups, organizations, or governmental bodies o Faulty construction, planning, materials or maintenance

Dwelling Policies conditions are same as HO-3 except Section II

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ISO Dwelling Policy

Coverage for liability and theft endorsements Personal Liability Supplement Coverage for Liability Coverage L and M which are same a E and F in HO-3 Residential Theft Coverage - Theft
Broad Theft Coverage

Limited Theft Coverage

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ISO Mobile Home

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ISO Mobile Homes

Exposures are same as owners of Conventional Homes Subject to perils of transportation More Susceptible to windstorm, tornado, and earthquake How Mobile home is covered

o By having mobile home endorsement to HO-2, HO-3

o Having HO-4 without endorsement o Requirements Portability and Year-round Living Width and Area Mobile Home Coverages o Coverage A o Coverage B ( 10% of Coverage A Limit with a min limit of $2000) o Additional Coverages

Property Removed Up to $500

No Ordinance Law

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ISO Mobile Home Other Endorsements

ACV
Transportation/Permission to move Mobile home lien holder's single Interest Property removed Increased Limit Ordinance or Law Coverage

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Flood Insurance

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Flood Insurance
Why flood insurance is not available in standard Insurance? Community eligibility for Flood Insurance
o Application to FIA o FEMA determines eligibility for participation o FIA Notifies the community to join NFIP o Community must join with in 1 yr of notification o SFHA

NFIP ( FEMA )
o Emergency Program

$ 35,000
$1,00,000 $10,000 o Regular Program

- Dwelling - Other Residential Structures - Contents

$ 250,000 - Dwelling $ 2,50,000 - Other Residential Structures $1,00,000 - Contents

o Waiting period of 30 Days to avoid adverse Selection WYO( Write-Your-Own ) Flood Insurance

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Policies for Hard-to-Insure Loss Exposures

FAIR Plans Beachfront and Windstorm Plans

Both are Assigned Risk Plans

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FAIR Plans
FAIR Plans o State Run program to assure property coverage on Buildings, dwellings and
their contents o Proof of non-availability of insurance in the voluntary insurance Market

o Apply to FAIR plan through a licensed agent or broker

o Property Inspection o The insured must comply with the recommendations made in Inspection o Uninsurable Loss Exposures to FAIR Plans

Vacant
Poorly Maintained
unacceptable physical hazards, Violation of law or public policy Not Built with Building and Safety Codes

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Beachfront and Windstorm Plans

Coverage to Risk of heavy windstorm losses
Hurricanes and other Storms
High Tides and Coastal Erosion Losses from tidal waters are excluded ( and covered in Flood) The maximum limits and deductibles vary by state

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