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 doesn’t 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 don’t 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 don’t 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
 Landlord’s 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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