Personal Lines Coverages (Homeowners, Dwelling, Personal Auto)
Homeowners and dwelling
Homeowners forms are packaged: Coverage A dwelling, B other structures (usually 10% of A), C personal property (usually 50% of A), D loss of use, E personal liability, F medical payments to others. Coverages B, C, and D are automatically included percentages of A unless endorsed. HO-2 is broad named peril on the dwelling, HO-3 special (open peril) on the dwelling with broad named peril on contents, HO-5 open peril on both, HO-4 renters, HO-6 condominium, HO-8 older homes (functional replacement cost). Dwelling policies (DP-1, DP-2, DP-3) cover the structure only and are used for rental property or homes ineligible for an HO form.
Trap areas: special dollar sublimits on money, securities, jewelry theft, firearms theft, silverware theft, and business property - schedules are needed for real protection. Standard exclusions include earth movement, water damage (flood needs a separate policy or endorsement), neglect, intentional loss, ordinance or law, and business pursuits. Personal property off premises and property of guests are covered with limits.
Personal auto. The Massachusetts standard policy is numbered in parts: Parts 1–4 are compulsory (bodily injury to others; PIP; bodily injury caused by uninsured auto; damage to someone else's property) and Parts 5–12 are optional (medical payments, optional bodily injury, collision, limited collision, comprehensive, substitute transportation, towing and labor, underinsured auto). PIP pays medical expenses, a percentage of lost wages with a sublimit, replacement services, and funeral costs regardless of fault; tort claims for pain and suffering require crossing the injury threshold. Definitions govern newly acquired autos, temporary substitute autos, and nonowned autos; the named insured's family members are generally insureds.
Worked example: Coverage A is $400,000, so Coverage B is $40,000. A detached garage sustains $60,000 of damage - only $40,000 is available unless Coverage B is increased by endorsement.