Residential Property Coverages
The forms
HO-2 (broad named perils on both dwelling and contents), HO-3 (open perils on the dwelling, named perils on personal property), HO-5 (open perils on both), HO-4 renters (contents plus liability, no building), HO-6 condominium unit owners, HO-8 modified coverage for older homes. Learn the layout: Coverage A dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others; Section I limits are usually stated as percentages of Coverage A.
Special limits that get tested
Money, securities, jewelry and furs, silverware, firearms, business property at home, and electronics in vehicles all carry internal sub-limits - the schedule endorsement raises them. Ordinance or law is typically limited to 10% of Coverage A; mold to about $10,000; trees, shrubs and debris removal have dollar caps. Loss assessment coverage is critical for condo and HOA clients.
Water, wind and flood
Accidental discharge from a plumbing system is covered; water that enters from outside - surface water, rising water, storm surge - is flood, excluded and written through NFIP or a private flood policy, typically with a 30-day waiting period. Wind and hail are covered, but a named-storm or hurricane deductible (a percentage of Coverage A) may apply and must be disclosed. Flood is never covered by a homeowners policy, even when wind and flood occur together - that simultaneity question is a favorite trap.
Condominium and renters traps
HO-6 covers building items within the unit plus improvements and betterments, and responds after the association's master policy; renters insure contents only but still need liability and loss of use. Business pursuits, rental of the residence and home-sharing usually need endorsements.
Rule of thumb: if water comes from the sky or the ground outside the walls, think flood; if it comes from a pipe inside, think homeowners.