When you have finished this chapter, you should be able to

  • Interpret loss-settlement provisions
  • Recognize significant exclusions and limitations in the homeowners Section I coverage
  • List and describe the optional coverages available to broaden the homeowners forms

In this chapter, we continue our review of home-owners forms, turning to a discussion of the perils against which coverage is provided under the forms. As we noted in the last chapter, there are differences in the perils for which the forms provide coverage. In this chapter, we will examine those differences more closely.




The differences in the homeowners policies are designed to accommodate the insurance needs of different property owners. Thus, there are separate forms of dwelling owners, tenants, and condominium unit-owners. In addition to the differences traceable to the different status of insureds, some forms differ with respect to the scope of their coverage, as determined by the perils against which protection is provided.

In reviewing the differences among the homeowners forms, we will focus on a single form, homeowners form HO-3. It includes the broad named-peril ...

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