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?4U ... Questions for You ...
Homeowners
sponsored by
10/27/2014
?4U
Homeowners
with
Irene Morrill, CPCU, CIC, ARM, CRM, LIA, CRIS, CPIW
Vice President of Technical Affairs
Massachusetts Association of Insurance Agents
Vermin …what is it
One of my insureds opened his newly built in
ground pool last week and noticed that he had
some holes in the liner.
The appraisal company looked at the damages
and said it was from a raccoon.
The appraiser also told my insured that this was a
good thing since a raccoon is a mammal, and
therefore would be covered (which sounds crazy
to me).
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10/27/2014
Vermin …what is it
The adjuster at the insurance company (Safety
Insurance), contacted our insured and told him a
raccoon is considered vermin and therefore would
not be covered. Is this correct?
I find it hard to believe that there is no way to have
coverage in the event that an animal does damage to
your swimming pool liner?
Vermin …what is it
When I spoke with the insured he had looked
around on-line and found a few cases where the
insurance company was forced to pay for the
damages since the term “vermin” is so broad.
What do you think?
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10/27/2014
Vermin …what is it
Only in Massachusetts is a raccoon vermin …thanks
to a MA court case Hingham v. Reavey
I wonder how the judge did in science when back in
school.
Under the HO-9 and HO-2000 filings the Coverage
A/B exclusion for vermin is rewritten
HO-91 and HO-2000
Vermin …what is it
What does “vermin” mean …in ISO national policy it
is NOT defined …so the dictionaries are used
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10/27/2014
Vermin …what is it
noun, plural vermin.
1. noxious, objectionable, or disgusting animals
collectively, especially those of small size that appear
commonly and are difficult to control, as flies, lice,
bedbugs, cockroaches, mice, and rats.
2. an objectionable or obnoxious person, or such
persons collectively.
3. animals that prey upon game, as coyotes or weasels.
Vermin (colloquially varmint[1] or varmit) are pests or
nuisance animals, especially those that threaten human
society by spreading diseases or destroying crops and
livestock. Use of the term implies the need for
extermination programs. Since the term is defined in
relation to human activities, which species are included
vary from area to area and person to person.
The term derives from the Latin vermis (worm), and was
originally used for the worm-like larvae of certain
insects, many of which infest foodstuffs.[2] The term
'varmint' (and 'vermint') has been found in sources from
ca. 1530-1540s.[1][3]
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10/27/2014
Vermin …what is it
Generally …”vermin” is not considered to be raccoons
or skunks …but things like mice and smaller…
Unfortunately … due to the court case in MA we have an
amendatory endorsement adding a definition of
“vermin” which is VERY comprehensive
Vermin …what is it
In MA … HO-91 and
HO-2000 re-defines
“vermin” to include
raccoons, skunks, etc.
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10/27/2014
Vermin …what is it
HO-2011 changes exclusion to the below:
Good news …vermin removed
Bad news … add exclusion for nesting/infestation and
discharge/release of waste products/secretions
So no skunk secretion …possibly raccoon damage
Host liquor coverage …or not
I have an insured who is currently insured with MPIUA
– HO3, who is going to be having a wedding on their
premises and is concerned about coverage.
I did call MPIUA but was unable to get a straight
answer, they only advised me that the insured should
obtain a 1 day event policy? There will be
approximately 200-240 people attending, but no liquor
sales.
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10/27/2014
Host liquor coverage …or not
Would you be able to tell me if there would be
coverage afforded under their Homeowners policy
(form is 10/00) for such an event?
Host liquor coverage …or not
First … drinking and getting injured on the premises …
Covered under HO policy?
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10/27/2014
Host liquor coverage …or not
If a guest drinks too much and injures
him/herself by falling down the stairs or
falling while walking home and sues me,
will my HO policy respond?
It’s an open bar
They pay for their drinks
Host liquor coverage …or not
There is NO host liquor
exclusion in the
HO-2000/2011 or the
HO-91 policy.
This is the HO-2000/2011
language but HO-91
similar
Section II Coverage E
covers ALL BI/PD unless
excluded
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10/27/2014
Host liquor coverage …or not
This says coverage for :
direct actions
vicarious liability and/or negligent supervision
contractual liability and/or assumption
Host liquor coverage …or not
If there is no exclusion, then the HO
policy will respond to BI and PD
arising when an “insured” is legally
responsible.
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10/27/2014
Host liquor coverage …or not
HO-2000/2011
(HO-91 similar)
As long as not selling liquor …not a problem …
selling liquor could be a “business” and then you
would be in trouble
Host liquor coverage …or not
NO ISO HO edition has any
reference to alcohol
And therefore …no exclusion
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10/27/2014
Host liquor coverage …or not
If a guest drinks too much, drives his/her
car home and on the way injures
him/herself or someone else and I get
sued, will my HO policy respond?
It’s an open bar
They pay for their drinks
Host liquor coverage …or not
The HO 2000/HO-2011 edition could be a
problem
If guests drink too much and DRIVE and cause
injury to themselves or others the
HO-2000/HO-2011 “motor vehicle liability
definition” and corresponding Coverage E/F
exclusion could preclude coverage
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10/27/2014
Host liquor coverage …or not
The HO-2000/HO-2011 definition of motor vehicle
applies to ANY motor vehicle owned or used by
ANYONE.
Host liquor coverage …or not
The HO-2000/HO-2011 motor vehicle
Exclusion excludes the definition …
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10/27/2014
Host liquor coverage …or not
MA court case in 2011 with Fairplan and
the ISO HO-2000 denied auto related host liquor coverage
under the HO
policy
Host liquor coverage …or not
Possible solution to lack of host liquor
coverage in HO-2000/
HO-2011 edition?
Buy one-day event policy
Look to MAP and cross your fingers
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10/27/2014
Host liquor coverage …or not
The HO –91 edition – same answers as to the
non-driving question
No host liquor exclusion
No business activity
No exclusion = COVERAGE!!!!!
Host liquor coverage …or not
The HO –91 edition – motor vehicle exclusion only
applies to a vehicle OWNED by; rented to; loaned to;
operated by an “insured”
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10/27/2014
Renting a moped in Bermuda …or not
What if my insured borrows or rents a
moped,
On vacation … in Bermuda?
Renting a moped in Bermuda …or not
Don’t count on HO coverage …
for BI/PD
or
damage TO it …
under the HO-91, HO-2000 or HO-2011
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10/27/2014
Renting a moped in Bermuda …or not
All of these
vehicles are
designed for ON
road use …
So … the HO-91
won’t be
applicable for
BI/PD to others
Renting a moped in Bermuda …or not
HO-2000/HO-2011
states no coverage
for anything subject
to registration on
public roads OR
property …
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10/27/2014
Renting a moped in Bermuda …or not
And like the HO-91 would
the HO-2000 and HO-2011
ONLY provide coverage
for certain recreational
vehicles designed for OFF
road use ….
Renting a moped in Bermuda …or not
There will be NO Section II
Additional Coverage for damage
TO any of the rented moped…
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10/27/2014
Renting a moped in Bermuda …or not
The HO-91 only provides section II additional
coverage for Damage to property in one’s care
of the vehicle is designed for off road use.
Renting a moped in Bermuda …or not
And …
ditto for the
HO-2000 and
HO-2011…
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10/27/2014
Renting a moped in Bermuda …or not
PS…
No Coverage C
for these motor vehicles under either
the HO-91 or HO-2000/2011… as not
designed for off-road use
Renting a moped in Bermuda …or not
NO Coverage C
4. Property Not Covered
We do not cover:
c. "Motor vehicles".
….
(2)
We do cover "motor vehicles" not required to be
registered for use on public roads or property which are:
(a)
Used solely to service an "insured's" residence; or
(b)
Designed to assist the handicapped;
HO-2000 (HO-2011 and HO-91 similar)
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10/27/2014
Renting a Segway on vacation
My insured came into the office and was telling me
what they had done on vacation. They mentioned
renting segways and going on a Segway excursion …
Nothing happened …but if it had … what would their
HO policy do?
Renting a Segway on vacation
The Segway PT is a two-wheeled, self-balancing, batterypowered electric vehicle invented by Dean Kamen. It is
produced by Segway Inc. of New Hampshire, USA. The
name Segway is derived from the word segue, meaning
smooth transition. PT is an abbreviation for personal
transporter.
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10/27/2014
Renting a Segway on vacation
HO-91
Renting a Segway on vacation
Segway is designed for off road use as it is battery
operated.
Under the HO-91 policy could provide coverage for
BI and PD to others as it is NOT SUBJECT TO
MOTOR VEHICLE REGISTRATION!!!
The need for motor vehicle registration could vary
by state so be careful about advice to clients.
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10/27/2014
The damage TO the Segway is excluded
under the Coverage E limit by the C/C/C
exclusion in the policy in the HO-91
Renting a Segway on vacation
However, under the Additional coverages
section of Section II in the HO-91 policy
there could be $500 maximum for the
replacement value of loss to property of
others “caused” by an insured
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10/27/2014
Renting a Segway on vacation
HO-91
Renting a Segway on vacation
There would be NO HO-91 Section I
Contents coverage due to the exclusion
for motor vehicles found under Coverage C
Property Not Covered. We do not cover:
3. Motor vehicles or all other motorized land conveyances.
This includes:
b. Electronic apparatus …..
We do cover vehicles or conveyances not subject to motor
vehicle registration which are:
a. Used to service an "insured's" residence; or
b. Designed for assisting the handicapped;
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10/27/2014
Renting a Segway on vacation
Would the answer be any different if
they had been on vacation in St. Marten
and caused a similar accident with a
rented segway?
Renting a Segway on vacation
No,
the answer is the same because the HO policy
provides world wide coverage under both
liability and contents.
The issues would still be the same.
If the Segway is NOT subject to motor vehicle
registration, then liability coverage would be
provided for BI and PD to others.
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10/27/2014
Renting a Segway on vacation
Would any of the answers be different
if Bud and Irene had the HO-2000 or
HO-2011 instead of the HO-91?
Renting a Segway on vacation
The short answer is …
no …
same answer for all questions…
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10/27/2014
Renting a Segway on vacation
Additional definitions added to HO 2000 and HO-2011
1. "Aircraft Liability", "Hovercraft Liability", "Motor Vehicle Liability" and
"Watercraft Liability", subject to the provisions in b. below, mean the
following:
a. Liability for "bodily injury" or "property damage" arising out of the:
(1) Ownership of such vehicle or craft by an "insured";
(2) Maintenance, occupancy, operation, use, loading or unloading of
such vehicle or craft by any person;
(3) Entrustment of such vehicle or craft by an "insured" to any person;
(4) Failure to supervise or negligent supervision of any person
involving such vehicle or craft by an "insured"; or
(5) Vicarious liability, whether or not imposed by law, for the actions of
a child or minor involving such vehicle or craft.
Renting a Segway on vacation
Additional definitions added to HO 2000/HO-2011
7. "Motor vehicle" means:
a. A self-propelled land or amphibious vehicle; or
b. Any trailer or semitrailer which is being carried on,
towed by or hitched for towing by a vehicle
described in a. above.
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10/27/2014
Renting a Segway on vacation
HO 2000/HO-2011
SECTION II – EXCLUSIONS That very broad definition … is ….excluded!
A. "Motor Vehicle Liability"
1. Coverages E and F do not apply to any "motor vehicle
liability" if, at the time and place of an "occurrence", the
involved "motor vehicle":
a. Is registered for use on public roads or property;
b. Is not registered for use on public roads or property, but
such registration is required by a law, or regulation
issued by a government agency, for it to be used at the
place of the "occurrence"; or…
Renting a Segway on vacation
HO 2000/HO-2011
SECTION II – EXCLUSIONS
A. "Motor Vehicle Liability"
….
2. If Exclusion A.1. does not apply, there is still no coverage
for "motor vehicle liability" unless the "motor vehicle" is:
…..
…..
d. Designed for recreational use off public roads and:
(1) Not owned by an "insured"; or
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10/27/2014
Renting a Segway on vacation
HO 2000/HO-2011
HO-2000 and
HO-2011…
Pays the
additional
coverage limit
of $1000 to
rented
Segway if
damaged
Renting a Segway on vacation
HO 2000/HO-2011
NO Coverage C
4. Property Not Covered
We do not cover:
c. "Motor vehicles".
….
(2) We do cover "motor vehicles" not required to be
registered for use on public roads or property which are:
(a)
Used solely to service an "insured's" residence; or
(b)
Designed to assist the handicapped;
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10/27/2014
Renting a Segway on vacation
If your client rented an ATV or dirt bike
OR A GOLFCART …
same discussion as Segway as these are
designed for off road use
Docks and the HO policy
We have several clients who live on the water.
They have docks for their own boats.
I assume there is liability coverage if someone
is injured on their doc if they are on it with the
insured permission. W
What if the insured rents the doc space out to 1
or more people for the summer for a fee?
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10/27/2014
Docks and the HO policy
Does that constitute some sort of business
pursuit?
Would the policy need to be endorsed? Should
they obtain a commercial policy to be safe?
Can you let me know your thoughts?
Docks and the HO policy
It makes sense to me the ISO HO definition of
"insured location" should consider a dock an
insured location .... either "premises" used in
connection with my residence ...or that
premises occasionally rented for non-business
use.
If it is owned or rented to an insured and does
not fit the definition of "insured location" then it
there is NO coverage for BI/PD or MP to others
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10/27/2014
Docks and the HO policy
All HO editions have the same
definition of “insured location”
Is it a “premises used by you in
connection with your residence
premises”?
Docks and the HO policy
What is a “premises”
Here are two definitions:
A. Black's Law (9th): "The part of a deed that describes the land being
conveyed... A house or building, along with its grounds."
B. Merriam-Webster: "A tract of land with the buildings thereon; a
building or part of a building usually with its appurtenances (as
grounds)."
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10/27/2014
Docks and the HO policy
What is a “premises”
If the dock is attached to the insured’s residence premises …then it
should fit the definition.
A little email with underwriter …or on deck page … adding the
discussion could help
Docks and the HO policy
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10/27/2014
Docks and the HO policy
f the dock is not attached to
residence premises … then one could
have a problem with “insured
ocation” definition …and then I
WOULD definitely want it mentioned
on policy declarations page
Docks and the HO policy
If it is rented to OTHERS ..that becomes a
business and then there is DEFINITELY no
coverage ...
And … would a carrier add an endorsement?
If its ON the residence premises … HO 04 42
Incidental Occupancies could help …but IS it
ON the residence premises????
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10/27/2014
Docks and the HO policy
My largest client who just bought his family’s
home in Squantum. Oooh how the rich
live. Gorgeous waterfront property insured with
MPIUA.
He received a permit to build a
Dock/float. From there spend $200,000 in
construction fees to complete this pier.
Docks and the HO policy
My initial thoughts are that he would have only
“broad form” perils available and to increase
Part B to $200,000? If someone were to run into
from the water at night and leave the scene I
guess he’s on his own?
Can you help me?
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10/27/2014
Docks and the HO policy
The ISO HO policies only cover other structures
ON the residence premises … is a dock
completely on the premises?
Is a float …an other structure off premises …or
contents … that I would ask my carrier.
Docks and the HO policy
If dock is an other structure it has open perils
coverage subject to ACV loss payment …
and might need the HO 04 92 Specified Other
Structure off the residence premises
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10/27/2014
Docks and the HO policy
For other structure OFF
the residence premises
Need this endorsement
to buy coverage
Docks and the HO policy
If contents it receives named perils …unless
change to open perils …
and if replacement cost endorsement added to
policy …that is good …
but I would ask my carrier how they intend to
interpret this critter before the loss …could a
windstorm cause damage???
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10/27/2014
Swimming pools and the HO policy
Is a “standard above ground 4 ft deep” large
swimming pool considered “personal property”
under contents coverage?
Swimming pools and the HO policy
It depends.
Some companies say Contents as can take it
down and move it
Others say other structure as needs pump,
electricity …ask the particular company … ask
ALL your companies …
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10/27/2014
Swimming pools and the HO policy
If it is other structure …good news under HO-3
get “open perils”
But … it is NOT a building and will only receive
ACV loss settlement … under ANY edition of HO
policy
Swimming pools and the HO policy
If it is considered Coverage C …
It gets named perils …but with the HO-5 one
can have open perils on contents (Or under
HO-91 the HO-3 plus HO 00 15 endorsement)
Then . …since the HO 04 90 Replacement Cost
endorsement for contents is ALWAYS added
one can get R/C loss settlement
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10/27/2014
Swimming pools and the HO policy
If the ice from the top of the pool covering falls
into the pool and rips the liner is that a covered
cause of loss?
Swimming pools and the HO policy
It depends on
1. whether company is “straight ISO”
2. Is this above ground or inground?
3. If above ground … does company see
this as Coverage B or Coverage C
4. What are perils for Coverage C … if
consider above ground contents
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10/27/2014
Swimming pools and the HO policy
If 16 named perils for contents …
what caused “ice to fall” …falling ice …not
named peril …
weight of ice and snow not covered unless
contents inside
Swimming pools and the HO policy
If considered Coverage B … (or added open
perils to contents - Some companies use the
following ISO exclusion to deny coverage:
HO-2000/2011
HO-91
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10/27/2014
Swimming pools and the HO policy
If this is the exclusion I would argue “weight of
SNOW caused loss … since that is NOT
excluded
HO-2000/2011
HO-91
Swimming pools and the HO policy
The insured's inground swimming pool liner
has puckered areas, cracks, and tears. Per the
insured's pool maintenance company, this was
caused by the extremely cold winter - ground
water froze and came into contact with the liner,
causing the cracks and tears. It's an estimated
$5k - $6k in damage.
Do you think this would be covered?
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10/27/2014
Swimming pools and the HO policy
Unfortunately … the same exclusions will
probably be utilized to deny claim …
As well as
Property in storage and the HO policy
I was searching the MAIA site for H04 contents
stored in a storage unit and was getting error
messages.
I am reading the policy and researching
insured location and residence premises. It
looks like I have coverage @ 10% of contents
limit. Is this correct?
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10/27/2014
Property in storage and the HO policy
I can ONLY speak to ISO policies
The ISO HO-91 and ISO HO-2000 give complete
Coverage C limit to property off premises …
including in storage. The only time in those
policy editions when there is an overall
limitation of coverage is when property is
usually located at ANOTHER insured’s
RESIDENCE …say a camp or second home.
Property in storage and the HO policy
HO-91 …only has
overall limit of 10%
ONLY if stuff is usually
located at another
insured’s residence …
Stuff in storage is NOT
limited
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10/27/2014
Property in storage and the HO policy
HO-2000 …only has overall
limit of 10% ONLY if stuff is
usually located at another
insured’s residence …
Stuff in storage is NOT limited
Property in storage and the HO policy
In the ISO HO-2011 edition …which only one
company that I know of uses … is there a
SECOND overall 10% limitation … for Selfstorage facilities …
If your company is not ISO …or “modifies” ISO
language ..you would have to look at Coverage
C language.
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10/27/2014
Property in storage and the HO policy
HO-2011 has
another overall
10% limitation for
stuff at a selfstorage facility
Property in storage and the HO policy
HO 06 14
Increased Amount
of Insurance For
Personal Property
Located in a SelfStorage Facility
Endorsement is
available
45
10/27/2014
Property in storage and the HO policy
Should a self-storage facility be an “insured
location” for liability … I believe that was ISO’s
attention …otherwise …where you would find
liability coverage.
It could be considered in ALL ISO editions:
Property in storage and the HO policy
But …
company interpretation sometimes puts a
“geographic limitation” … not that ISO does …
I’d ask my HO carrier.
46