1. Homeowners Insurance: Named Perils & Endorsements

2. Part 1: Named Perils Coverage

3. Overview Peril vs hazard What is a named peril?

4. Fire or Lightning Direct physical loss caused by: Flame Smoke Soot Damage caused by firefighters

5. Class Discussion Point Scorching caused by a fire

6. Windstorm or Hail Policy does not define windstorm Force of wind or hail causes opening in structure Exclusions

7. Explosion Not defined in policy form Large scale, rapid, bursting “out”

8. Class Discussion Point Freezing, bursting pipe Gun discharge

9. Riot or Civil Commotion Definition Differentiating from vandalism

10. Aircraft Definition Includes self-propelled missiles and spacecraft What’s covered Direct physical contact not required

11. Vehicles Covers damage caused by vehicles Exclusion Damage caused by vehicle owned or operated by occupant of insured premises

12. Smoke Definition Coverage Sudden and accidental discharge Fire need not be present

13. Class Discussion Point Soot from burning candles

14. Vandalism or Malicious Mischief Restrictions on vacant buildings Intentional acts excluded? Definition of malicious mischief Legal vs common meaning

15. Theft Exclusions Committed by insured Dwelling under construction Rented to someone who is not an insured Secondary residence College students

16. Falling Objects Damage caused by falling object Actual object not covered Damage to roof or outside wall

17. Class Discussion Point Toppling water tower

18. Weight of Ice, Snow, or Sleet What’s covered Exclusions Awnings Fences Patios

19. Accidental Discharge or Overflow of Water What’s covered Hidden mold, fungus, wood rot Exclusions Loss to system from which water escaped Surface water

20. Class Discussion Point Hose accidentally left on

21. Sudden & Accidental Tearing Apart Refers to heating systems, air conditioning or automatic sprinkler system (for fire protection.)

22. Freezing Plumbing, heating, air conditioning, automatic fire protective sprinkler system or household appliance. Reasonable care

23. Sudden and Accidental Damage – Artificially Generated Current Definition of artificially generated Exclusions

24. Volcanic Eruption Developed in response to Mount St. Helens eruption. Coverage for airborne shock waves, volcanic ash, lava flow Excludes land shock waves, earthquakes, tremors Debris removal

25. We will now take a short break before proceeding to Part 2 on Common Endorsements.

26. Part 2: Common Endorsements

27. Topics In this section we will cover these main topics: 1.Why endorsements are used 2.Common endorsements to the Homeowners Policy

28. Introduction What is an endorsement? Why are they used?

29. Endorsements Modifying the Insured

30. Insuring a Personal Trust “You” and “Your” Endorsement HO 05 43 AAIS personal trust endorsements

31. Relative in Assisted Living Facility Specific to named relative and facility Coverage limited for certain items Additional living expenses

32. Additional Interest or Insured Endorsements for non- mortgagee Additional interest vs. additional insured Premises liability coverage

33. Endorsements Modifying Coverage A

34. Dwelling Under Construction – Theft Only AAIS form allows coverage Specific dollar amount of coverage

35. Unit Owners Special Coverage Named perils basis Endorsement for open perils coverage

36. Water Back Up and Sump Discharge or Overflow Up to $5,000 provided Deductible Loss due to mechanical breakdown of sump pump covered, but loss to pump itself is not.

37. Endorsements Modifying Coverage B

38. Increased Limit – Other Structures Other/related private structures coverage may be increased Endorsements do not increase coverage B

39. Other Structures Away from Premises Structure may be insured in two ways: Other structures away from premises endorsement Schedule individual structures through Specific Structures endorsement

40. Endorsements Modifying Coverage C

41. Computer Coverage Computer hardware, software, operating systems, networks Electronic parts

42. Open Perils Coverage for Personal Property Tenant may attach to policy Does not cover breakage resulting from earthquake

43. Scheduling Personal Property Clients need to be educated! Can broaden scope of coverage to an open perils basis: Jewelry Furs Cameras Musical Instruments Fine Art

44. Scheduling Personal Property Agreed value basis Coverage C exclusion Settled losses Coverage for fine arts

45. Other Modifying Endorsements

46. Personal Property Replacement Cost Loss settlement provisions for: Personal property Awnings Carpeting Household appliances Outdoor equipment Recovery limited to smallest of five defined amounts

47. Personal Property Replacement Cost Four categories of property not eligible for replacement cost coverage Losses with replacement values of more than $500

48. Home Day Care Subordinate to homeowners forms primary coverage Exclusions and policy limits

49. Additional Residence – Rented to Others Rental premises can be covered under homeowners policy Liability coverage for other locations usually indicated on declarations

50. Farmers Liability Liability arising out of incidental farming activities Liability arising away from insured premises

51. Personal Injuries Extends coverage for injuries arising out of: False arrest Wrongful eviction Invasion of privacy Malicious prosecution Libel, slander, defamation Exclusions

52. Miscellaneous Endorsements

53. Identity Theft Respond to costs incurred with identity fraud Pays reasonable and necessary attorney fees Loss of earnings

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