Education
ProgramS
A Few Important
Homeowners Issues...
sponso
red
by
10/21/2015
A few important
Homeowners Issues
with
Irene Morrill, CPCU, CIC, ARM, CRM, LIA, CRIS, CPIW
Vice President of Technical Affairs
Massachusetts Association of Insurance Agents
This program is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the
understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert
assistance is required, the services of a competent professional person should be sought.
With special thanks to the Insurance Services Office, Inc. , and Automobile Insurers Bureau for advance information, continued support, and
permission to use their forms and information.
“Vacancy” or “residence premises”
We are trying to see how to adequately protect our
agency from a issue with Vacancy Clause on a
homeowner's policy.
Example: We have a client who has
purchased a new home, they have
moved into the new home & have
their old home up for sale.
We explained the vacancy clause to them but they
say the husband is going to stay in a house without
any furniture in it.
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10/21/2015
“Vacancy” or “residence premises”
Is there any kind of sign off or forms that we should
have the client sign to protect us in this kind of
issue?
We want to make sure we are protecting our E & O.,
“Vacancy” or “residence premises”
Vacancy is a problem for fire/lightning in MA, and
glass breakage, freezing pipes and vandalism in all
states.
I do NOT believe the man is sleeping on a HARD
FLOOR without anything else in the house ..
And some companies are stating …doesn’t belong
on HO if YOU don’t LIVE there …NO Coverage A, B,
D, E … period …
I would contact my carrier ..
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10/21/2015
“what is a residence premises”
“An elderly widow had some health problems and went
to a nursing home with every intention of returning to
her home when her health improved.
Her home was looked after by her nonresident children
and they cut the grass, shoveled the snow, etc.
“what is a residence premises”
Her home address was still her legal address, her voting
address was still her home address, and legally her home
address was still the address of the home she was temporarily
not residing in.
After several months, there was a fire which was a total loss.
Her home was destroyed.
She has carried an HO-5 homeowners policy with the same
agent and carrier for many years.
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10/21/2015
“what is a residence premises”
Her insurance carrier paid the contents loss
but denied the dwelling claim because they insisted that the
home she owned and was temporarily away from was not her
‘residence premises.’
“what is a residence premises”
I think this is crazy and would liken this situation to one where a
person called into the military is gone from their primary residence
for a short time.
The real issue then is:
when an elderly person is temporarily away from their home
with every intention of returning, how can the carrier deny
the property claim by stating that the home which was
insured and at which the loss occurred was not the insured’s
residence premises?”
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10/21/2015
“what is a residence premises”
In this policy, "you" and "your" refer to the
"named insured" shown in the Declarations and
the spouse if a resident of the same household.
"We", "us" and "our" refer to the Company
providing this insurance.
You … is the named insured …
person(s) on dec page
HO-2000/HO-2011 –
all forms
(HO-91 similar)
“what is a residence premises”
11.
"Residence premises" means:
a. The one family dwelling where you reside;
b. The two, three or four family dwelling
where you reside in at least one of the
family units; or
c. That part of any other building where you
reside;
and which is shown as the "residence
premises" in the Declarations.
"Residence premises" also includes other
structures and grounds at that location.
HO-2000/HO-2011 – HO-2, 3, 4, 5
(HO-91 similar)
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10/21/2015
“what is a residence premises”
11. "Residence premises" means the unit where
you reside shown as the "residence premises" in
the Declarations.
HO-2000/HO-2011 – HO-6
(HO-91 same …different #)
“what is a residence premises”
This definition creates a problem … where YOU reside …
if YOU don’t live there ….
Then …
we don’t have a “residence premises” …
is what some companies are saying … and some courts
agreeing to
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10/21/2015
“what is a residence premises”
IIABA white paper states:
One school of thought, supported by a body of case law,
is that the
“where ‘you’ reside” stipulation means that, if “you” no longer
resides in the dwelling, it isn’t a “residence premises,”
and thus there is no Coverage A, B or D since each hinge on the
existence of a “residence premises.”
“what is a residence premises”
What does “reside” mean?
Webster defines “reside” to mean “to dwell permanently or
continuously,” and defines “residence” to mean “the
place where one actually lives as distinguished from one’s domicile
or a place of temporary sojourn.”
The American Heritage dictionary defines “reside” to mean “to live
in a place permanently or for an extended period.”
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10/21/2015
“what is a residence premises”
What does “reside” mean?
Black’s Law defines “reside” to mean “live, dwell, abide,
sojourn, stay, remain, lodge. To settle oneself or a thing
in a place to be stationed, to remain or stay, to dwell
permanently or continuously, to have a settled abode for a
time, to have one’s residence or domicile; specifically to be
present in residence, to have an abiding place….”
“what is a residence premises”
What does “residence” mean?
Black’s Law defines “residence” to include a:
“Place where one actually lives or has his home; a person’s dwelling
place or place of habitation; an abode; house where one’s home is;
a dwelling house.
Personal presence at some place of abode with no present
intention of definite and early removal and with purpose to
remain for undetermined period,
not infrequently, but not necessarily combined with design to stay
permanently.
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10/21/2015
“what is a residence premises”
IIABA white paper states:
In fact, one argument says that since the Coverage C limit is a
percentage of the Coverage A limit and Coverage A no longer
exists, then the Coverage C limit vanishes.
WOW …nasty!!!!
We choose to disregard this viewpoint since a specific limit is
typically shown on the Declarations page and Coverage C applies
on a worldwide basis without restriction to a “residence premises.”
“what is a residence premises”
Coverage dependent on “residence
premises”
If there is no “residence premises” Coverages
A, B and D … no longer … apply!!!
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10/21/2015
“what is a residence premises”
Coverage dependent on “residence
premises”
If there is no “residence premises” Coverages A, B
and D … no longer … apply!!!
“what is a residence premises”
If “you” don’t live there …
and the issue of “residence premises” is
invoked …
Do you think there should be Coverage E …
What about when house is being sold and
realtor and prospective buyers are there?
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10/21/2015
“what is a residence premises”
If “you” don’t live there …and the issue of
“residence premises” is invoked …Coverage E?
“what is a residence premises”
If “you” don’t live there …and the issue of
“residence premises” is invoked …Coverage E?
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10/21/2015
“what is a residence premises”
Does the concept of "vacancy" apply –
does it even need to be considered
Often …we THINK the issue is “vacancy” ….
but vacancy is the LEAST of your worries!!!
Vacancy can be
no nothing
lacks intention to return
lacks amenities minimally necessary for
human habitation
“what is a residence premises”
If the home is considered “vacant” … ASSUMING the issue
of “residence premises” is not invoked … the client has a
problem with
Glass breakage (30 or 60 days depending on
ISO HO edition)
Perils of
Fire/lightning in MA and RI
VMM
Freezing of pipes
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10/21/2015
In nursing home case …I’m sure house is furnished …
but …is there REALLY an “intention to return”….
named insured no longer resides there
In relocation – how long before furnishings moved …
and “vacant” … too
Plus …if you KNOW this about the risk …
shouldn’t you be talking to the insurance
company …
“what is a residence premises”
Relocation and the homeowner
“We just learned this morning that one of our homeowner
insureds was transferred suddenly several months ago.
He literally got the word on a Friday to start work the next
Monday morning at the company’s office 500 miles away.
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10/21/2015
“what is a residence premises”
Relocation and the homeowner
“He’s been living at an extended stay hotel while a realtor has
been trying to sell his house but with the current market that
could take a long time.
He finally thought to call us and ask about his insurance.
We think he needs to move his coverage from an HO policy to a
dwelling form. What do you think?”
“what is a residence premises”
Relocation and the homeowner
IN both situations …if ‘YOU” are NOT going to live there …
YOU probably need to change the policy – how soon …will depend
on
1) How strictly company interprets “residence premises”
2) What/who is still at/in your house
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10/21/2015
“what is a residence premises”
Relocation and the homeowner
This is an increase in hazard for the insurance company … and in
MA can be a valid reason for MID-TERM cancellation
“what is a residence premises”
Relocation and the homeowner
We have a fiduciary responsibility to the insurance company
who we represent to bring this to their attention
We also owe a professional responsibility to the client …for the
same …bringing it to company’s attention …MIGHT buy us
some time … or not
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10/21/2015
“what is a residence premises”
Foreclosures
“We have a client that has an HO-3. She has moved out of the
house and into another apartment and did not purchase an HO-4.
The HO-3 is still in force and the home is in the process of
foreclosing.
Foreclosures
“what is a residence premises”
When moving out of the dwelling insured under the HO-3, she put
some of her items in storage.
My question is how would the policy respond if she had a personal
property loss at either her new apartment or a personal property loss
at the storage location?
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10/21/2015
“what is a residence premises”
Foreclosures
Looks like a potential problem to me …
she really needs an HO-4 – for contents and liability …
And
is there REALLY any coverage on the dwelling under the HO-3 per
the “residence premises” issue …
that is something to discuss with the company … plus they might
want to get off the risk …
and foreclosure would allow them to cancel mid-term
“what is a residence premises”
Foreclosures
Says the IIABA white paper:
This is another example of how obscure this issue is to most
agents.
In this question, the focus was on Coverage C for personal
property, not Coverage A on the dwelling.
Foreclosure and repossession are one thing, but a total
uncovered loss is another and would obviously create a far
worse financial obligation for the mortgagor.
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10/21/2015
Foreclosures
“what is a residence premises”
Says the IIABA white paper:
according to one school of thought (apparently held by multiple
adjusters) and several court decisions,
if someone moves out of their home while a foreclosure
progresses, coverage ceases at the point they move out with the
conscious intent not to return.
“what is a residence premises”
Foreclosures
Says the IIABA white paper:
Keep in mind too that “non-residency” does not necessarily mean
“vacancy.”
It is conceivable that a dwelling could be fully furnished yet no one
resides there.
If that logic is accepted, then coverage could vanish long before the
moving van shows up.
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10/21/2015
“what is a residence premises”
Foreclosures
S0 … will the fact that the named insured doesn’t
live there affect the mortgagee’s coverage?????
K. Mortgage Clause
1. If a mortgagee is named in this policy, any loss
payable under Coverage A or B will be paid to the
mortgagee and you, as interests appear.
…..
2. If we deny your claim, that denial will not apply to a
valid claim of the mortgagee, if the mortgagee:
“what is a residence premises”
Foreclosures
The mortgagee has no greater rights under the policy than the
insured,
absent fraud by the insured that otherwise voids the policy or neglect
by the insured, e.g., in filing proof of loss.
Mortgagee ONLY gets coverage …where the policy would normally
apply
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10/21/2015
“what is a residence premises”
Foreclosures
But …again … Foreclosure… is a MAJOR exposure
Why make the company have to “fight” with the issue of “residence
premises” ….
once you know the issue …
let them know and then they can issue legal notice of cancellation …
and hopefully not have to pay ANY claims.
“what is a residence premises”
IS IT FAIR …. To use definition … as exclusion …
Isn’t it just descriptive language …NOT a “warranty” of
occupancy
or
a condition of coverage
Hidden exclusion in definition … unlike exclusions shown in
Section II
Reasonable expectation of insured
Eligibility v. coverage
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10/21/2015
“what is a residence premises”
IS IT FAIR …. To use definition … as exclusion …
Court cases covering …
PLRB (property loss research bureau) wrote an article a few
decades ago stating language shouldn’t be interpreted
“literally” to deny claims
Insured could have meth lab in basement …blow up house and
be covered!!!
Onerous … hidden nature of limitation ..
New 2015 HO amendatory endorsement
Revising the definition of “residence premises”
HO 06 48 10 15 – HO-2/3/4/5
HO 17 48 10 15 – HO-6
Where you reside … on INCEPTION date of the policy period shown
In declarations
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10/21/2015
New 2015 HO amendatory endorsement
Revising the definition of “residence premises”
How long …. Have YOU been out …on renewal …oops with this
language …if agent not “privy” to what the “YOU” is doing
New 2015 HO amendatory endorsement
Revising the definition of “residence premises”
On renewal …does one need DP?
Vacant home policy?
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10/21/2015
New 2015 OPTIONAL HO broadened coverage
endorsement
HO 06 49 10 15 – HO-2/3/4/5
HO 17 47 10 15 – HO-6
Temporarily remove
the requirement of
residence …
Must put in inception
and termination date
Maybe significant
renovations?
New 2015 OPTIONAL HO broadened coverage
endorsement
HO 06 49 10 15 – HO-2/3/4/5
HO 17 47 10 15 – HO-6
Premium bearing
endorsement …for
EACH 30 days
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10/21/2015
Renewal questionnaire … form
ISO renewal
notification/questionnaire
For those of us NOT talking to
clients on renewal…
great tool … to get us to talk
about all SORTS of things
Response …then underwriting
discretion
Renewal questionnaire … form
IIABA …has asked ACORD to
change HO application to ask this
This ISO form and/or ACORD …
Identify closing issues …major
renovations … not moving in right
away
24
10/21/2015
Insured location
definition…
What does it
include …or not
Insured location definition ….
how broad?
Is the "custom house rented for your daughter's wedding
an "insured location"?
Is swimming pool at homeowners' association that your
insured lives in an "insured location"?
Are the beach rights that came with your insured's home
an "insured location"?
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10/21/2015
Insured location definition ….
how broad?
While riding an ATV at beach that insured has legal
beach rights to ... but is NOT adjacent property ...is
insured riding owned motor vehicle on "insured
location"?
Is dock space that the insured rents to keep his 35
foot yacht at an "insured location"?
Insured locations and the HO policy
Response …
I know ..
we are all thinking of the insured location definition
…
ISO has not changed it over the last two editions …
HO-91, HO-2000 and HO-2011 have same
wording …
just different numbering system
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10/21/2015
Insured locations and the HO policy
Insured locations and the HO policy
(the only difference between the HO-91 and
HO-2000/2011 definition of residence premises
is the mention of 3 and 4 families instead of
using an endorsement)
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10/21/2015
Insured locations and the HO policy
So …
do any of the above insured locations
definitions fit?
If not ON the residence premises …you
have a problem.
Insured locations and the HO policy
Grounds is defined as:
The land surrounding or forming part of a house or another building. Often used in the
plural: a guesthouse on the grounds of the mansion.
grounds, the gardens, lawn, etc., surrounding and belonging to a building.
Curtilage
–nounLaw.
the area of land occupied by a dwelling and its yard and outbuildings, actually enclosed or
considered as enclosed.
n. Law
The enclosed area immediately surrounding a house or dwelling.
[Middle English, from Old French courtillage, from courtil, diminutive of cort, court;
see court.]
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10/21/2015
Insured locations and the HO policy
The further away you get …the less likely ….even
if it is YOUR land …
that it will be “residence premises” …
then you need another part of the definition to
help
Insured location definition ….
how broad?
Is the "custom
house rented for
your daughter's
wedding an
"insured location"?
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10/21/2015
Insured location definition ….
how broad?
Is swimming
pool at
homeowners'
association that
your insured
lives in an
"insured
location"?
Insured location definition ….
how broad?
Are the beach
rights that came
with your
insured's home
an "insured
location"?
30
10/21/2015
Insured location definition ….
how broad?
While riding an ATV
at beach that
insured has legal
beach rights to ...
but is NOT adjacent
property ...is insured
riding owned motor
vehicle on "insured
location"?
Insured location definition ….
how broad?
Is dock space that
the insured rents to
keep his 35 foot
yacht at an
"insured location"?
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10/21/2015
Insured locations and the HO policy
Vacant land IS covered as an insured location … but
what does THAT mean
If there is a fence around the land … is it still
vacant?
If there is a road on the land …is it vacant
Insured locations and the HO policy
Vacant land IS covered as an insured
location … but what does THAT mean
Oops …not any real information …
what does “vacant” need
32
10/21/2015
Insured locations and the HO policy
Vacant land,"
according to the courts, means land that is
unoccupied and unused and/or which has
no structures on it.
According to Travelers Indemnity Co. v.
Holman, 330 F.2d 142, 5th Cir. Tex. (1964),
"vacant land" requires that the property be
unoccupied, unused and "in its natural
state."
Insured locations and the HO policy
In De Lisa v. Amica Mutual Ins. Co., 59 A.D.2d 380, 399
N.Y.S.2d 909 (1977), a child was injured in an abandoned
structure on land owned by the insured.
The court ruled that "vacant land" meant that there was
no structure or building on the land, so there was no
coverage.
In O'Connor v. Safeco Ins. Co., 352 So. 2d 1244, Fla.
Dist. Ct. App. 1st Dist. (1977), property was determined not
to be vacant because a surfaced road went through it.
33
10/21/2015
Insured locations and the HO policy
MA court case:
Citation: 426 Mass. 379 (1998)
Parties:
CITATION INSURANCE
COMPANY vs. BRENDA GOMEZ &
others1;ISU ANDERSON AND BAKER
INSURANCE SERVICES, INC., thirdparty defendant.
Concrete bunker …not vacant – kid lost
finger on bunker door
Insured locations and the HO policy
SO …
what about the “dockominiums” or beach
rights …
beach probably not vacant …and obviously
… a “dock” is something!
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10/21/2015
Insured locations and the HO policy
What does Used by … mean?
What does “in connection with” mean?
Depends on the court…. And the case
Insured locations and the HO policy
In 1996 in State Farm Fire & Casualty vs.
Comer , the U.S. District court for
Mississippi said it failed to see how a
pasture located several miles from the
defendant’s home
"could be used in connection with the
residence premises."
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10/21/2015
Insured locations and the HO policy
But in Erie Insurance vs. Szamatowicz (2004), a
warehouse some 20 miles from the residence
premises
was an insured location, and therefore there was
liability coverage for the insured homeowner
when a guest, injured at the insured’s birthday
party, sued.
The insured had leased the warehouse with the
vague intention of developing it in the future,
and because of the large number of invited
guests, decided to host his birthday party there.
Insured locations and the HO policy
The North Carolina appellate court looked
at an earlier case involving an all-terrain
vehicle ( Nationwide vs. Prevatte , North
Carolina App. 1992) and said
it had rejected a similar argument for
geographic constraints "absent express
language in the policy to that effect."
Therefore, the warehouse could indeed be
an insured location.
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10/21/2015
Insured locations and the HO policy
But a court in another jurisdiction from Erie looked
at Prevatte and rejected its outcome.
Despite the fact that the insured homeowner
regularly used the adjoining premises (owned by the
insured’s mother) for burning trash and loading or
unloading trucks,
the U.S. District Court for Oregon said the usage
was not sufficient to "transform the adjacent land"
into an insured location.
Insured locations and the HO policy
The property was not used routinely,
nor
did the insured have an easement for usage. This case is
SAFECO vs. Clifford
But note that the policy does not make either of these
requirements;
it simply states the "insured location“
is a
premises used "in connection with" a premises as described.
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10/21/2015
Insured locations and the HO policy
Many courts dismiss the "used in connection with"
language as inapplicable
without elaborating on what the language does (or
doesn’t) mean.
Insured locations and the HO policy
In Illinois Farmers Insurance Co. vs. Coppa (1993),
the Minnesota court of appeals said "‘insured
location’ was not meant to describe adjacent, nonowned land on which an ATV might be used
and it was not reasonable to expect
that every field or pathway in the neighborhood
leading to the insureds ’ residence was property ‘used
in connection with’ that residence."
So saying, the court did not say what "insured
location” was meant to describe, only what it wasn’t.
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10/21/2015
Insured locations and the HO policy
In another case, the operator of an all-terrain vehicle
owned by the insured was fatally injured on a
roadway.
The Pennsylvania Superior Court determined that
because the roadway was privately owned by a
residential development,
it followed that it was private property used in
connection with the insured residence ( Uguccioni
vs. United States Fidelity and Guaranty Co. , 1991).
Insured locations and the HO policy
This decision ignores the meaning
of the word premises, apparently
simply equating it with private
property.
39
10/21/2015
Insured locations and the HO policy
Appeals court of Massachusetts in
Massachusetts Property Insurance
Underwriting Assoc. vs. Wynn (2004)
In an action brought by an insurer seeking a
declaration that its insured's homeowner's
insurance policy did not obligate the insurer to
defend or indemnify an action for negligence
arising from a collision of all-terrain vehicles
on a beach located in proximity to the insured
premises,
Insured locations and the HO policy
the judge granted summary judgment in favor of
the insurer, where the language in an exception
under the policy to an exclusion from coverage for
motorized land conveyances designed for
recreational use off public roads and owned by an
insured and on an insured location
was not ambiguous and could not be read to cover
accidents occurring in a place other than the
insured location, as long as the vehicle was garaged
on the insured location
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10/21/2015
Insured locations and the HO policy
moreover, the beach, despite being used regularly
in connection with the nearby residence, could not
be considered part of the insured location,
where the beach did not adjoin the insured
property
and was not owned by
the homeowner,
was not integral to the use of the insured property
as a residence
So …how lucky do you feel today???
Insured locations and the HO policy
Can you add it to the dec page
for Section II insured
location???
41
10/21/2015
Insured locations and the HO policy
What about the custom
house?
What about association
pool?
Insured locations and the HO policy
Custom house … is an insured
location….
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10/21/2015
Insured locations and the HO policy
Association common areas, pool?
Back to …what is a premises used in
connection with??
Who is an
insured …
or not
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10/21/2015
Just WHO is an “insured” ….
HO-91
HO-2000
HO-2011
Just WHO is an “insured” ….
Just what IS a “resident relative”?
Is my mother-in-law who lives with me?
YES
Is my step-sister from California who is staying
with me for the summer? NO
Is a live-in boyfriend?
He’s 30
NO
He’s 20
NO
44
10/21/2015
Just WHO is an “insured” ….
Just what IS a “resident relative”?
Can be in the military and still be an
“insured”
A 32 year old captain in the US Army
(Ohio court case Prudential v. Koby)
In the Ohio case of Prudential v. Koby, a 32-year old captain in the U.S.
Army was ruled to have held dual residency at his home as well as that
of his parents.
The court stated, “…there was no requirement that, in order for a
person to be a resident of the named insured’s household, such residence
must be the sole or exclusive residence of the person.”
Just WHO is an “insured” ….
Just what IS a “resident relative”?
Don’t necessarily have to be LIVING there at
the time of loss …
Children of divorced parents CAN be found
“insureds” under BOTH policies (HO and
Auto)
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10/21/2015
Just WHO is an “insured” ….
Just what IS a “resident relative”?
From a HO standpoint …good to be an
“insured” when need
1)
contents coverage
2)
Liability/defense for BI/PD to others
Just WHO is an “insured” ….
Just what IS a “resident relative”?
From a HO standpoint …BAD to be an
“insured” when INJURED at the residence
premises or BY another “insured” because under
BOTH the HO-91 and HO-2000
MP
ONLY
applies to
NON-residents
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10/21/2015
Just what IS a “resident relative”?
From a HO standpoint …BAD to be an
“insured” when INJURED at the residence
premises or BY another “insured” because under
BOTH the HO-91 and HO-2000
No BI to an “insured”
Just what IS a “resident relative”?
The issue of “students” is where the HO-91 and HO2000/HO-2011 … part ways
HO-91
HO-2000/HO2011
Students have historically been
considered “resident relatives” under
the HO-91 whether living in a dorm
room or off campus apartment while
mom & dad are supporting!
47
10/21/2015
Just what IS a “resident relative”?
The issue of “students” is where the HO-91 and HO2000 … part ways
HO-2000/HO-2011
The HO-2000 adds language …
Is it a LIMITATION ….
Or
A means to “guarantee” insured
status?
Just what IS a “resident relative”?
“insured”… or not
Enrolled in school FULL time
as defined by school
NOT the student
Resident of household BEFORE
going to school
does that mean in
September
HO-91 does NOT have these
restrictions
or
as a freshman?
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10/21/2015
Just what IS a “resident relative”?
Then …
Once 24 …
Happy birthday ….
You’re a non-insured
student!
HO-91 doesn’t have AGE
restriction
Add back insured status for student over 24 –
resident of HH before going to school
49
10/21/2015
Just what IS a “resident relative”?
Whether HO-91 OR HO-2000/HO2011 …. good to know what college
living arrangements are …
Same apartment more than
one year …why not an HO-4 –
It’s better to have TWO policies …
than NONE!!
Open perils contents
I have an insured with an HO3 who had an ice dam
loss, he has been told by the company that they will
pay for damage to the inside of the structure but
not to contents.
The company is saying that contents coverage
would be excluded under Windstorm or Hail
because "this peril does not include loss to the
property contained in a building caused by rain
(etc.) unless the building is damaged".
The insured was told his wall to wall carpet would
be covered as part of the dwelling but not his
oriental carpet.
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10/21/2015
Open perils contents
I would think the contents might be covered from an ice
dam loss under weight of ice, snow, or sleet (although
now that I read the policy I'm getting some grey areas).
How do you normally see ice dam damage covered?
Open perils contents
I know that for the last few years we had a lot of snow …and
there were a LOT of “ice dam” …
And this is one of the situations where the difference
between HO-3 and HO-5 becomes evident
I agree with the company adjuster …but I HATE that they
point to the windstorm peril.
What should be said …is that none of the 16 named perils
covers ice dam situations.
I suppose they point to the windstorm peril because it talks
about “interior rain, snow” … etc.
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10/21/2015
Open perils contents
Ice dam requires "all risk
perils" as none of the
named perils "does the
trick"
Nice try ...but it is not
the "weight" of the ice
and snow that caused
the loss ..
Open perils contents
Other reasons for contents named perils
1)
rain entering through open windows damaging furniture
2)
Power surge damage to electric contents
3)
Scorching, melting (not fire!)
4)
Losing
5)
Dropping/breaking of many household articles
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10/21/2015
OIL
and
the
HO
policy
Property Remediation for Escaped Fuel Coverage Endorsement
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Doesn’t the unendorsed HO policy cover oil
spill loss?
HO-91 and HO-2000 HO-3 exclude
under Section I loss to A and B
Property Remediation for Escaped Fuel Coverage Endorsement
Doesn’t the HO policy cover oil spill loss?
The ISO HO policy HO-91 or
HO-2000/HO-2011 for Section II …
NO exclusions
Though ….SOME companies HAVE
added an exclusion as of 7/1/2010
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Clean up …can cost … a lot
Simple leak …$15,000
Larger …$250,000
My friend …$1.5 million
Property Remediation for Escaped Fuel Coverage Endorsement
WHAT does endorsement …do
Get the “good” with the bad … Affects Section I and Section II
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
WHAT does endorsement …do
The minimum coverage required is $50,000 per
occurrence for first-party property claims,
subject to a deductible not to exceed $1,000,
and $200,000 per occurrence for third-party
liability claims and defense costs.
Limits for property remediation coverage may
be increased to $100,000;
limits for escaped liquid fuel liability coverage
may be increased to $300,000.
Property Remediation for Escaped Fuel Coverage Endorsement
WHAT does LAW require?
Does NOT require that the company
offer ANY more than:
$50,000 Section I
$200,000 Section II
(ISO filed for $300,000
maximum
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
What if insured Section II Personal
injury liability limit is $500,000???
Oh well …company is NOT
required to “match” the Section II
limit …
Property Remediation for Escaped Fuel Coverage Endorsement
Section I coverage IS “per occurrence”
This endorsement is
Per aggregate
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Section I coverage includes:
Loss to A,B, C
Reasonable repairs
to stop leakage
Clean up
Testing
Property Remediation for Escaped Fuel Coverage Endorsement
Section I coverage also includes:
Loss to trees shrubs plants
Add’l living expense
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Like the mold endorsement …
ALL section I covered loss is subject to
the per occurrence limit
Property Remediation for Escaped Fuel Coverage Endorsement
Bad news … regarding Section II….
The limit on the Dec page does NOT apply to BI/PD
due to escaped liquid fuel – only get limit on
endorsement
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Bad news … regarding Section II….
Loss PER occurrence
Property Remediation for Escaped Fuel Coverage Endorsement
Get loss assessment for share of
occurrence due to fuel system
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10/21/2015
Property Remediation for Escaped Fuel Coverage Endorsement
Section II Condition involving Coverage F
duties of insured person and claim
payment are removed
Property Remediation for Escaped Fuel Coverage Endorsement
Limit of Liability provision for HO Section II
NOT APPLY …only get limit in endorsement
… maximum
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10/21/2015
Thank you for attending…
A few
Homeowners
issues
Irene Morrill [email protected]
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