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Homeowners Insurance Terms

Homeowners Form – Provides property insurance for dwellings in average to good condition and in which the insured party lives. Also can have up to two renters per family to qualify for homeowners form coverage.

Homeowners Coverage A – Insurance coverage generally applies to the dwelling and attached structures.

Homeowners Coverage B – Insures other structures on the insured property that are not directly attached to the dwelling other than by a fence, utility line or similar connection. Does not apply to land or property used for commercial purposes.

Homeowners Coverage C – Provides limited coverage for personal property owned or used by the insured while anywhere in the world with some exclusions. Insured parties include the named insured and household residents related to the insured or under age 21 and under the care of the insured. Also can apply to visitors’ property for an addition sum.

Homeowners Coverage D – Provides insurance coverage for loss of use of insured property, including lost income an additional living expense.

Homeowners Coverage E – Provides insurance coverage for the costs of additional living expenses, such as the cost of temporary relocation due to damages from a covered peril.

Homeowners Section II Coverage E – Provides personal liability coverage up to policy limits for property damage or bodily injury to others arising out of non-business activities on an insured location.

Homeowners Section II Coverage F – Provides medical payments to others up to policy limits for injuries sustained on insured property.

Additional Coverages – Can be added to homeowners policies to provide coverage for debris removal, reasonable repairs, removed property, trees, shrubs, plants and other potential losses. Also called “endorsements.”

Earthquake Endorsement – Insures property against damages from earthquakes.

Personal Property Replacement Cost Endorsement – Does not factor depreciation when assessing the value of personal items damaged or destroyed by an insured peril.

Scheduled Personal Property Endorsement – Insures individual high-dollar belongings, such as artwork or antiques, value is greater than personal property limits in homeowners insurance policies.

 

Basic Form Coverage – Automatically insures properties against direct physical loss caused by fire, lightning or an internal explosion caused by a water heater, furnace, stove or other object.

Special Form Coverage – Provides broad coverage for dwellings and other structures by stating perils excluded rather than perils covered by the insurance policy. Loss to personal property is covered for the same perils as provided in the broad form.

Broad Form Coverage – Provides the same coverage as the basic form but with additional protections against damages from burglars, weight of ice, snow or sleet, falling objects, accidental discharge or overflow of water or steam, freezing other than when the dwelling is vacant, sudden and accidental damage from an electrical discharge not caused by lightning, and sudden or accidental damage to appliances used for heating water, air conditioning systems or fire suppression systems.

Homeowners Policy – Multi-line insurance policies providing coverage for the dwelling and contents and includes coverage against theft and legal liability.

Homeowners Broad Form – Provides broad form coverage for the dwelling and other structures as well as named-peril coverage.

Homeowners Special Form – Provides special form coverage for dwelling and other structures by stating perils excluded and broad form coverage for personal property.

Tenants Form – Provides tenants with broad form, named-peril coverage.

Comprehensive Form – Provides special form coverage for the dwelling, other structures and personal property.

Unit-Owners Form – Provides broad form, named-peril coverage for owners and occupants of condominiums.

Modified Form – Generally used for older homes, it provides modified named-peril coverage for owners and occupants.

Dwelling Form – Provides property insurance coverage for dwellings that do not have to be occupied by the insured and can be in poor to good condition.  Can be used to insure small rental buildings with no more than four rental units, vacation or rental homes, offices, storage units and similar properties.

Dwelling Basic Form – Automatically insures properties against direct physical loss caused by fire, lightning or an internal explosion caused by a water heater, furnace, stove or other object in a covered building or in a building housing covered personal property.

Dwelling Basic Form Extended-Coverage Perils – Can be added by paying an additional premium for protection against damages caused by wind and hail, aircraft, riot or civil commotion, vehicles, volcanic eruption, smoke and internal or external explosions not caused by a steam boiler. Additional coverage also can be purchased for protection against vandalism and malicious mischief.

Dwelling Broad Form – Provides the same coverage as the basic form but with additional protections against damages from burglars, weight of ice, snow or sleet, falling objects, accidental discharge or overflow of water or steam, freezing other than when the dwelling is vacant, sudden and accidental damage from an electrical discharge not caused by lightning, and sudden or accidental damage to appliances used for heating water, air conditioning systems or fire suppression systems.

Dwelling Special Form – Provides broad coverage for dwellings and other structures by stating perils excluded rather than perils covered by the insurance policy. Loss to personal property is covered for the same perils as provided in the Broad Form.

Dwelling Form Coverage A –  Provides insurance coverage for the dwelling as well as attached structures and any equipment used to build, repair or maintain the building and property.

Dwelling Form Coverage B – Provides coverage for other structures used with the dwelling, including a detached garage, pool, sheds, well or other structures separated from the dwelling by a clear space or is connected to the dwelling only by a fence, utility line or similar connection. Coverage does not apply to land or structures used for business, farming or other commercial activity other than rental housing.

Dwelling Form Coverage C – Provides limited coverage for personal property usual to the occupancy of a dwelling and owned or used by the insured and family members as well as property owned by guests or servants while at the dwelling and if the insured requests the coverage. Exclusions include pets and other animals, airplanes, powerboats, vehicles, stamps and tickets, credit cards, currency, precious metals, accounts and data.

Dwelling Form Coverage D – Used by landlords to insure against indirect losses to rental properties, such as lost rental income, caused by a peril for which the landlord was insured.

Dwelling Form Coverage E – Provides additional living expense coverage when added to Broad Form or Special Form coverages.

Dwelling Form General Exclusions – All Dwelling Form policies do not provide insurance coverage for losses caused by local ordinance or law, Earth movement, including earthquakes, sinkholes, landslides, mudslides and other types of Earth movement, external water damage, power failure, neglect, acts of war, nuclear hazards, intentional losses and loss of lawns, plants, shrubs or trees.