Homeowners and Dwelling Policies
The Homeowners program
The HO forms share a structure: Coverage A dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others. In the standard HO-3, B is 10% of A, C is 50%, and D is 30% of A; E and F are stated separately (commonly $100,000 and $1,000).
- HO-2 - broad form, named perils on both dwelling and contents.
- HO-3 - open peril on the dwelling, named peril on personal property. This split is heavily tested.
- HO-4 - tenants; covers contents and liability, not the building.
- HO-5 - comprehensive form, open peril on both.
- HO-6 - condominium unit owners.
- HO-8 - modified coverage for older homes, settling on repair cost or functional replacement.
Special limits and exclusions
Standard special limits include $200 for money, $1,500 for securities and for theft of jewelry, watches, and furs, and $2,500 for theft of firearms. Section II excludes business liability, intentional acts, use of aircraft and most watercraft, and auto liability. Section I excludes earth movement, flood, neglect, and ordinance or law (unless endorsed).
Loss settlement
Dwelling losses are paid at replacement cost if the insured carries at least 80% of replacement cost at the time of loss; otherwise ACV. Personal property is settled at ACV unless a replacement-cost endorsement is added.
Dwelling policies
The DP-1, DP-2, and DP-3 cover the dwelling and personal property of a rented or non-owner-occupied home - but never liability.
Trap: a homeowner cannot "add" liability to a dwelling policy; liability exposure requires a homeowners or a separate CGL form.