1. Damage to the Property of Others
Section II – Additional Coverages

2. Damage to the Property of Others
Additional Coverages under Section II – Liability: Protections/coverages that would not neatly fall under Coverage E or F or that need to be clearly defined in relation to the Property section. Four additional coverages apply… lets go over them now

3. 1. Damage to the Property of Others
Pays damage to others’ property if insured causes it
Subjected to the following exclusions:
Pays nothing covered by Section 1
No coverage for intentional damage by adults or teenagers (13 or over)
No coverage for insured’s property
No coverage for property of residents or tenants
Insurer will pay up to $1,000 per occurrence for Damage to someone’s Property caused by its insured.

4. 2. First Aid
Covers all incurred costs necessary for the first aid of another
Does not pay for first aid for the insured

5. Claims Expenses
Covers financial loss due to the demands of the claims process, including:
The cost to investigate a claim
Expenses incurred by the insured (including lost wages up to $250/day)
Interest on judgments that accrue after the judgment
Premiums for bonds required in a suit defended by the insurer

6. Loss Assessment
Pays up to $1000 for assessments of property association members
Kicks in when:
Injury or damage is not excluded under section two
The liability is for an act committed by an elected director or officer, not a paid employee of the association
No coverage for assessments charged by a governmental body

7. Liability Coverage Exclusions – Coverage E
REMEMBER: Coverage E covers Personal Liability
EXCLUDES:
Bodily injury and property damage to the insured (1st party)
Bodily injury to the persons covered by Workers Compensation insurance
Damage to property rented by insured, occupied or used by insured, or held in insured’s custody and care

8. Liability Coverage Exclusions – Coverage E
Liability for contracts
However this is covered when relating to ownership, maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence
Unless damage is caused by fire, smoke, or explosion, Coverage E does not cover property rented to, occupied by, or in the care, custody, and control of the insured.
Contractual Liability is excluded. It is covered, however, if the liability on the contract relates to ownership, maintenance, or use of an insured location, or if the insured assumed the liability of others prior to the occurrence.

9. Coverage F – Medical Payments Exclusions
The insured person
Anyone who lives on residence premises regularly
Anyone eligible for Worker’s Comp or Disability for the occurrence
Harm to a resident employee who is not in the course of employment, or is not at premises at time of occurrence
Harm from nuclear reaction

10. Exclusions to E & F
Intentional or malicious harm to third party by insured
Harm from war
Disease transmitted from insured to 3rd party
Sexual molestation or abuse by insured
Drug use, sale, manufacture, possession

11. Vehicle Exclusions Harm or damage caused by insured’s automobile use
Exceptions: vehicle for property maintenance, handicapped persons, or those in storage. Recreational vehicles are covered under certain conditions
Aircraft
Watercraft
If owned by insured, motor is 25hp or greater
If rented by insured, motor is 50hp or greater
Rented or owned, sailboats 26ft or greater

12. Business Exclusions Third party losses due to insured’s business
Third party losses from insured’s failure to render business services
Failure to render professional services
Example:
A glass repair technician is sued by client for a job not well done. The insured’s homeowner policy excludes coverage of a suit of this type.

13. Section II Conditions Liability for contracts
However this is covered when relating to ownership, Liability for contracts
However this is covered when relating to ownership, maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence
maintenance, or use of insured location, or if insured had assumed others’ liability before an occurrence

14. Sections I or II Cancellation and Non renewal Assignment
Concealment/misrepresentation
Subrogation
Liberalization
Statement of waiver or change

15. Liberalization, Voluntary Coverage, and Lawsuits Against the Insurer
Applies to changes made up to 60 days before the policy inception
Payment of claim – Coverage F - Medical Payments to Other
* voluntary coverage if a claim is paid, it is not admission of insurer’s liability
Lawsuit against insurer:
All section II terms must be met
No one can join insurer in lawsuit against insured
No suit pertaining to Coverage E can be brought until obligation of insured is agreed to

16. Homeowners Endorsements
8 typical endorsements
Sinkhole collapse
Sewer backup
Earthquake
Hurricane
Ordinance or law
Personal property replacement cost
Inflation guard
Scheduled personal property

17. Changing coverage perils
Endorsements can add coverage for
Sinkhole collapse
Sewer backup – up to $5000 (deductible applies)
Earthquake
Ordinance or law (up to $5000)
Hurricane damage can be removed (if a state program already provides this coverage).

18. Changing limits and valuation
For increased premium, endorsements can add:
Replacement cost valuation rather than ACV
Inflation guard to automatically increase limit
Scheduled personal property such as jewelry, furs, collectibles

19. Review Coverage E – Personal liability – Coverage includes
medical bills
Lost wages
Pain & suffering
Inconvenience
Property damage
COVERAGE F – Medical Payment
Coverage for medical expenses of third parties that are injured on your property