6.2 Policy Coverage Copy

Section 1 – Property Coverage

Form HO-A – covers the dwelling, other private structures on the premises, and personal property on and away from premises against loss by fire, extended coverage, vandalism, and malicious mischief and theft.
Form HO-B – covers the dwelling and other private structures on the premises against all risks of physical loss with certain exceptions. In addition, Form HO-B covers personal property on and away from the premises against loss by fire, extended coverage, vandalism and malicious mischief, theft, and certain other named perils.

Form HO-C – covers the dwelling, other private structures on the premises, and personal property on and away from premises against all risks of physical loss with certain exceptions.

Extensions of Coverage
(Forms HO-A, HO-B and HO-C) provide Loss of Use:

(Additional Living Expense and Rental Value), and Consequential Loss Coverage against the policy perils. Trees, Shrubs, Plants, and Lawns are covered against certain named perils. Also included is Coverage for Reasonable Repairs. Property Removal and Automatic Removal.

Form HO-BT for tenants covers personal property on and away from premises against loss by fire, extended coverage, vandalism, and malicious mischief, theft and certain other named
Form HO-CT for tenants covers personal property on and away from the premises against all risks of physical loss with certain
Form HO-CON-B for condominium unit owners covers personal property on and away from premises against loss by fire, extended coverage, vandalism and malicious mischief, theft and certain other named
Form HO-CON-C for condominium unit owners covers personal property on and away from the premises against all risks of physical loss with certain

SECTION 2 – LIABILITY COVERAGE

Coverage C – Personal Liability
Covers payment on behalf of the insured all sums, subject to the stipulated limit, which the insured is legally obligated to pay as damages because of bodily injury or property damage arising out of the residence premises or personal activities; including liability for damage to premises and house furnishings used by or in the care, custody or control of the insured caused by fire, explosion and smoke (Fire Legal Liability).

Coverage D – Medical Payments to Others
Covers medical and related expenses, subject to the stipulated limit arising out of accidents to persons other than the insured and residents of the premises.

REQUIRED ADDITIONAL COVERAGE – SECTION 2

Additional Residences – Policies shall be written to include under Section 2 a premium charge for all premises where the named insured or their spouse maintains a residence. Location and additional premium must be shown on the declarations page of the policy under Other Residential Premises.

THE BASIC LIMITS OF LIABILITY UNDER SECTION 1 ARE:

Forms HO-A and HO-B:

Coverage A (Dwelling) $8,000 Minimum

Coverage B (Personal Property) 40% of Coverage A (Dwelling) with 10% of this amount, but not less than $1,000, applying to personal property away from the premises.
The limit of liability for Coverage B (Personal Property) may be increased above 40%, or it may be reduced to not less than 30% of Coverage A (Dwelling), (but not less than $3,200) at a premium adjustment

The limit of liability for Coverage B (Personal Property) on an owner occupied duplex may be reduced to not less than 20% of Coverage A.

Forms HO-C:

Coverage A (Dwelling) $12,500 Minimum
Coverage B (Personal Property) 50% of Coverage A
The limit of liability for Coverage B (Personal Property) may be increased above 50%, or it may be reduced to not less than 40% of Coverage A, at premium.
The limit of liability for Coverage B (Personal Property) on an owner occupied duplex may be reduced to not less than 25% of Coverage A.

Form HO-CT:

Coverage B (Personal Property) $7,000.00 Minimum

Form HO-CON-B:

Coverage B (Personal Property including improvements, alterations and additions) $4,000 minimum with 10% of this amount, but not less than $1,000, applying to personal property away from the premises.

Form HO-CON-C:

Coverage B (Personal Property including improvements, alterations and additions) $7,000 minimum.

The basic limits of liability for all policy forms under Section II are:

Coverage C – (personal Liability) $25,000
Coverage D – (Medical Payments to Others) $500

The basic limits of liability for Coverage C and D may be increased for an additional premium.

Additional Coverages & Endorsements
When additional coverage or endorsements are added to the Texas Homeowners Policy, the endorsement must be attached to the policy. In addition, the endorsement number, description, the limit of liability (if applicable), and premium charge (if applicable) must be shown on the declarations page under Other Coverages and Endorsements.

Always check endorsements on policies before conversations with insured’s and before closing a claim.

Section 1 – Mandatory Offer Endorsements

Mold, Fungi or Other Microbes Coverage – All applicants offered a Texas Homeowners Policy shall also be offered at time of application for insurance the Mold, Fungi or Other Microbes Coverage endorsement. Coverage is available with limits of liability for 25%, 50% and 100% of Coverage A (Dwelling), Coverage B (personal Property) and Loss of Use.

All coverage limits shall be offered to each applicant.

Insurers may file to offer a limit of liability selection option in lieu of the 25% and/or 50% selection options subject to prior approval by the Commissioner. However, the 100% limit of liability selection option shall be offered in conjunction with the approved selection option(s).

Section 1 – Optional Endorsements

Replacement Cost for Personal Property-Form HO-101.
Agreed Amount on Dwellings – HO-102
Residence Glass Coverage
Increased Limit on Jewelry, Watches, and Furs. The special limit of liability for the category of Jewelry, Watches, and Furs may be increased from $500 to not more than $5,000 by attachment of Endorsement HO-110 with an additional premium charge for the additional limit above $500.
Increased limits on Business Personal Property: The $2500 special limit of liability for Business Personal Property may be increased by attachment of Endorsement HO-111 with an additional premium charge for the additional limit above $2500.
Increased Limit on Money/Bank Cards: The special limit of liability for the category of Money/Bank Cards may be increased from $100 to not more than $500 by attachment of Endorsement HO – 112 with an additional premium charge for the additional limit above $100.
Increased Limit on Bullion/Valuable Papers: The special limit of liability for the category of Bullion/Valuable Papers may be increased from $500 to not more than $1,000 by attachment of Endorsement HO-113 with an additional premium charge for the additional limit above $500
Television and Radio Antenna: Specific coverage, with no deductible, maybe afforded for radio and television towers, masts and antennas, outside satellite dishes, including lead-in wiring, by attachment of Endorsement HO-120. Coverage is afforded for the property as described and located therein.
Windstorm Coverage for Greenhouses: Windstorm, hurricane and hail coverage may be provided for greenhouses by attachment of Endorsement HO 121. Coverage is provided for the property as described and located therein.
Windstorm Coverage for Cloth Awning: Windstorm, hurricane and hail coverage, with no deductible, may be provided for cloth awnings by attachment of Endorsement HO-122.

Section 2 – Optional Endorsements

Personal Injury Coverage: Personal Injury Coverage may be attached to all Homeowners Policies by attachment of Endorsement HO-201 at the applicable additional premium.
Farmers Personal Liability Coverage: When an insured who is otherwise eligible for a Homeowners Policy or Tenant Homeowners Policy has farm liability exposures, such exposures may be covered by attachment of Endorsement HO- 210 to convert the Personal Liability Coverage to Farmer’s Personal Liability Coverage.
Watercraft Liability Coverage: Watercraft excluded by the terms of section 2 may be covered by Endorsement HO-215 at the applicable additional premium.
Additional Premises Liability Coverage: If the named insured or spouse use or owns an additional one or two family residential premises (dwelling, duplex, apartment unit, condominium unit or townhouse unit) rented to others, such premises may be covered by the attachment of Endorsement HO-225 at the applicable additional premium.

General Requirements of the Homeowner

Policy Period
A policy may be written for a period of up to three years. A three-year policy premium is three times the annual premium.

Declarations Page
The declarations page approved by the Texas Department of Insurance contains the minimum information required for the issuance of a Texas Homeowners Policy. The arrangement of the declarations page is optional, however; the prescribed wording cannot be restricted.
Companies are prohibited from adding any information to a declarations page that would alter or amend the conditions of the policy.

Flat Cancellation
Flat Cancellation is a privilege designed to protect the agent against liability for earned premiums on policies issued in good faith and upon which an earned premium cannot be collected.

Homeowners Policies may be canceled flat for non-payment of premium only when satisfactory evidence of cancellation is sent to the company within 60 days of the inception date of the policy.

Deductible – The insured’s participation in the loss
Deductible Clause No. 1
Applies to windstorm, hurricane and hail losses under form HO- A and to windstorm, hurricane, hail, and wind-driven rain losses under forms HO-B and HO-C.

Deductible Clause No. 2
Applies to losses resulting from perils other than windstorm, hurricane, hail, and wind driven rain.

Deductible Clause No.3
Applies to losses resulting from all perils covered by the policy.

Deductible Clause No.1 & 2 applies to loss under coverage A (dwelling) and coverage B (personal property) under forms HO-A, HO-B, and HO-C.
Deductible Clause No. 3 applies to loss under coverage B (personal property) under forms HO-BT, HO-CT, HO-CON-B, and HO- CON-C.
The minimum deductible is $100.00.
Optional Large Deductibles of 1 1/2%, 2%, 2 1/2%, 3%, 4% or 5% of the limit of liability for Coverage A (Dwelling) may be provided for forms HO-A, HO-B, and HO-C.

Transfer or Assignment

Subject to any necessary premium adjustment, a Homeowners policy maybe TRANSFERRED or ASSIGNED under the following circumstances:

From one insured to another insured in event of transfer of title of the insured property;
From one location to a new location for the same insured if the new location is eligible for a Texas Homeowners Policy.