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Homeowners' changes in form and approval come in ISO's 2022 Multistate archiving




The Insurance Service Office (ISO) has released to Big I & # 39 ;s Virtual University the future homeowners' multi-state archiving, subject to effective start in March 2022. Yes, 2022. Eleven years have passed since ISO & # 39 ;s last large multi-state archive -state archiving, so this is bigger. Within this archiving, ISO introduced:

  • 13 new forms and inscriptions;
  • Revised 120 forms and endorsements; and
  • Revoked 11 forms and approvals.

Download this full article as PDF here.

A noticeable change in these revised forms and statements is not coverage-based but rather design-based. ISO has replaced the well-known format with double columns and chosen to adopt a format with one column. This seems to make it easier to read the form on a computer screen (no longer scrolling up and down).

Many of the changes in this archive can be traced back to the Big I & # 39 ;s Technical Affairs Committee (TAC). Most Big I members are not aware of the contribution of the TAC team. Over the years, many changes have resulted from the TAC team's perseverance and ISO's willingness to hear our thoughts. It is a small team of five members, but the results are fantastic. The 1

2 changes in this filing arising from the TAC are noted as " TAC record ."

New forms and inscriptions

ISO created a new homeowner (HO) form and 13 new certificates. Each new form and approval is introduced within this section.

HO 00 14: Homeowners 14 – Content Comprehensive Form
ISO has introduced a new coverage form for tenants. Tenants now have the option of the traditional HO-4 (Content wide form) or this new HO-14 (Content comprehensive form).

Two major differences between HO-14 and the traditional HO-4 are:

  • The new HO-14 increases coverage on open risk, while HO-4 provides property coverage on a specified risk basis. and;
  • The new HO-14 expands coverage to replacement cost. HO-4 provides coverage for a real cash value but can be supported with HO 04 90 to provide compensation cost coverage.

In addition to these differences, HO-14 offers many coverages not offered by HO-4 or even the other HO forms. These coverage extensions include:

  • Automatic coverage for home activity host activities;
  • Additional coverage for remedying bed bug ($ 500 per insurance period); and
  • Hard Disk Data Recovery ($ 300).

A restriction unique to HO-14 can be found in the "Special Limits" section. Unlike the other HO forms, which list specific dollar amounts for certain property (money, cutlery, firearms, jewelry, etc.), HO-14 extends 10% of the coverage limit to the listed property types. This 10% is a total limit for all property that is lost or damaged in a single incident. The limit of 10% of coverage C applies to:

  • Money, securities, banknotes, accounts, documents, etc .;
  • Theft of jewelery, watches, furs, firearms, cutlery; [19659003] Commercial Property;
  • Antiques, art, paintings and similar articles of rarity or antiquity; and
  • Model or hobby aircraft or personal watercraft not used or designed for the transport of persons or goods.

Please also note that certain properties specifically listed within the specific boundaries of other HO forms are not included in this section for special boundaries in HO-14. Jet skis, other than hobby boats, are completely excluded in HO-14; trailers are not listed or addressed; coverage for antennas, tapes, wires, disks, disks or other media for use with portable electronic equipment is not specifically addressed (no limit is specified and is not included in the list of properties not covered); and portable electronic equipment for motor vehicles are not covered.

Whether this is less than or more than the special limits offered by other HO forms depends on the limit of coverage C. For property not specifically addressed, HO-14 may be broader.

However, HO-14 is narrower than the other HO forms in some respects. On the property side, HO-14 does not extend coverage to or for:

  • Watercraft, other than model or hobby watercraft,
  • Trees, shrubs and plants;
  • Fire Brigade Service Fee;
  • Loss assessment;
  • Collapse;
  • Safety glass;
  • Building additions or alterations;
  • Regulatory or legal requirements; and
  • Grave Markers.

In the area of ​​responsibility, HO-14 does not extend protection for:

  • Motor vehicles, other than vehicles designed to assist disabled and motorized bicycles and motorized scooters;
  • personal watercraft;
  • Loss assessment; and
  • "Resident Employees."

In some ways HO-14 is preferable to HO-4, but in some it is not. Deciding which one to use depends on the specific characteristics of the insured.

Limited coverage for cannabis property – HO 06 01 (TAC article)
The name says it all. Cannabis has "grown" (pun intended) in recent years to become a HO exposure. The current HO program addresses by excluding cannabis only in the area of ​​responsibility by excluding controlled substances. On the real estate side, there was no obvious need to deal with cannabis because it was illegal to own or grow.

As states begin to allow medical and even recreational possession and use of marijuana, ISO feels the need to address exposure. Within the new HO forms, ISO has defined "Cannabis" and specifically excluded it on both the property and liability side, but allows the insured to buy back some coverage.

HO 06 01 Limited coverage for cannabis properties if permitted by the insurer, extends coverage for direct loss of property to "Cannabis" caused by certain named hazards:

  • Fire or lightning;
  • Explosion;
  • Riots or uprisings;
  • Aircraft;
  • Vehicles not owned or operated by a resident of the "residential area";
  • Vandalism or Harmful Accident; or
  • Theft.

Coverage of cannabis liability – HO 24 01 (TAC point)
When HO 06 01 expands property coverage for cannabis, HO 24 01 takes up the liability exposure from cannabis. With this approval, the carrier can extend the protection against bodily injury and damage to property for legal liability arising from the cannabis exposure when used in accordance with the law. Illegal possession, use, sale, etc. are still excluded.

Specified other structure (s) Exclusion – HO 06 21
As ISO explains, this new optional exclusion allows the insurer to exclude property coverage on a particular other structure. The ability to exclude one or more other structures allows the insurer to write an account that they would like to write but for age, condition, use or whatever of another structure on the premises. Examples given in the archive include a dilapidated old shed, garage, barn or silo.

Limited theft – Coverage A and B – Housing under construction – HO 06 67
In the non-approved HO policy, theft is excluded. when / if the home is under construction. The theft exemption applies to all parts of the property coverage (A, B and C). In the last major multi-state filing in 2011, ISO introduced HO 06 07 – Limited coverage for theft of personal property located in a building under construction (revised by this application) to provide theft coverage for personal property in a housing under construction. But there was never an alternative to theft of real estate (coverage A and B) when the property was attached to the home.

This new endorsement enables theft cover for real estate covered by cover A or cover B.

[19659100] Cover B – Other structures away from the premises – Compensation cost loss settlement for buildings – HO 06 91
Currently has insured two alternatives to insure other structures (coverage B) from the residential area, HO 04 91 – Coverage B – Other structures away from the residential area ; and HO 04 92, Specific structures away from the premises . Both approvals extend the protection on an actual cash value (ACV) basis.

As the name of the approval suggests, HO 06 91 changes the valuation method for all building constructions in a room that is not the living room at a replacement cost. With the introduction of this certificate, the name of HO 04 91 is changed to indicate that coverage is provided on an ACV basis ( HO 04 91 – Coverage B – Other structures away from the residential premises – Actual cash loss statement

Specific structures away from the living quarters – Compensation cost loss – HO 06 92
This is the companion to HO 06 91 and the compensation cost version of HO 04 92. It requires structures that must be listed specifically to get coverage.Like HO 06 91, compensation costs only apply to other structures that and as with HO 04 91, with the introduction of this approval, HO 04 92 was renamed to indicate that it provides coverage on an ACV basis.

Widened water back-up and swamp discharge or overflow coverage – HO 06 95
Since at least 1984, ISO has offered a back-up and flooding of water, in the 2000 edition of the homeowners' program revised ISO the approval. HO 04 95 – Limited water backup and emptying of outlet or overflow required that the water originates from within the dwelling.

In response to industry recommendations, ISO HO 06 created 95 – Widened water backup and emptying of outlets or overflows. The new recommendation only requires that the water:

  • be backed up by drains and sewers; or
  • Abundance or discharge from a sump, sump pump or associated equipment.

The requirement "within the dwelling" is removed when this endorsement is attached. Both HO 04 95 and HO 06 95 will remain available for use.

Other Insured Places (HO) – HO 24 02
ISO recognized there are currently no means of specifically identifying or scheduling other owned places or rented by the insured with respect to liability protection. For example, there is no current ability to extend coverage to land where structures other than housing can be found.

To address this gap, ISO introduces Other Insured Sites – HO 24 02 approval. This optional recommendation allows specific locations to be scheduled as "insured locations."

Not owned motorcycle and motorized scooter liability – HO 24 13 (TAC article)
Motorized bicycles, motorized bicycles and motorcycles have become more common in recent years. Rental options such as Lime and Bird have put people on motorized scooters in busy cities without requiring proof of competence. Riders have taken on a liability risk that was not covered by either HO or the personal car policy (PAP).

Within this application, HO 24 13 – Incidental Low Power Recreational Motor Vehicle Liability coverage statement has been revised to provide coverage for owned and non-owned vehicles that meet certain requirements, including motorcycles, motor-assisted bicycles and motorcycles . The revised statement HO 24 13 will read (this is the exception to the exception):

Item A.2.e. is replaced by the following:

  1. Designed for recreational use off public roads and:
    1. Not owned by an "insured"; or
    2. Owned by an "insured" provided that the "occurrence" takes place:
      1. In an "insured place" as defined in definition B.6.a., b., d., e. or h .; or
      2. From an "insured place" but only on the "motor vehicle":
        1. Not built or modified after manufacture to exceed 28 miles per hour on level ground; and
        2. Is not a:
          1. Moped; or
          2. Motorized golf cart, regardless of speed.

In the absence of HO 24 13, the insured has coverage for the use of a non-owned vehicle designed for recreational use off public roads including motorcycles, motorcycles and motorcycles. But there is no coverage for owned vehicles like these when used outside the facility.

Not owned motorcycle and motorized scooter liability – HO 24 03
HO 24 03 excludes coverage when the insured rents or borrows a motorcycle or motorized or motorized assisted bicycle. Protection is still in effect for other types of non-owned and operated vehicles, such as Barbie Jeeps, etc., on and off premises subject to low speed and specific requirements.

Motorized bicycle and motorized scooter liability Exclusion – HO 24 04
As the name suggests, this completely excludes the use of motorized bicycles and scooters whether they are owned or not owned. Since the insured has coverage for non-owned vehicles intended for recreational use off public roads no matter where they are used, the insurer may use HO 24 04 to delete coverage for all vehicles other than those used to assist the disabled while they are active in helping the disabled or parked on the insured premises.

In HO 00 14 (the new comprehensive content form) coverage for motorcycles is explicitly granted for bicycles. This recommendation can be used to remove the grant of coverage.

Personal injury cover (total limitation of liability) – HO 24 49
Provides essentially the same coverage as HO 24 82 – Note on personal injury cover. However, this recommendation makes it possible for the insured to choose a total limit for personal injury claims. This appears to be designed for use with HO 00 14 as it provides coverage for personal injury caused by home sharing activities (which are automatically covered by HO 00 14 but not other HO forms).

Personal Injury Coverage – HO 24 89
Designed for use with HO 00 14. This recommendation provides protection against personal injury but is not subject to an overall limit.

Oops, another new endorsement (although not new))

Although not included in the 2022 submission, ISO introduced a new approval in December 2020, which most in insurance not known – Utility Line Expense Coverage – HO 06 69 .

Tool Services started offering / selling protection for the various tool service lines several years ago. Consumers receive regular direct mail from the electricity grid describing the fact that the insurance does not cover damage to the electricity grid that has been damaged for various reasons.

As agents are often asked about this exposure and lack of coverage, carriers requesting ISOs create an alternative to provide such protection. Agents may now be able to provide this protection as part of homeowners' coverage rather than having the insured have a separate agreement.

This recommendation:

  • Adds "utility line" to the list of defined terms. "Pipeline" means a pipe, wire, line, cable or associated equipment in the residential area, outside a building and below ground level, which provides a connection to a municipal or commercial public utility such as water, sewer, gas, steam, electricity or communications;
  • Provides named hazardous coverages for damage to a "power line" caused by: wear, deterioration or deterioration; rust or corrosion; leakage; constriction or blocking bulge, rupture, explosion or explosion; implosion or collapse disconnection, separation or separation; failure of pressure or vacuum equipment; mechanical failure; electrical faults, including arcs; and trees, shrubs or plants;
  • Provide regulations or law coverage related to the line. Up to 10% of the coverage limit can be used to pay for the increased costs of complying with the building codes for the part of the structure damaged by the electricity grid.
  • Covers the reasonable and necessary costs of excavation, remediation, repair, or restoration of land or structures other than buildings; and
  • Provides up to 10% of the coverage line of the payline for additional cost of living.

Coverage extends to toolbars owned by the insured or not owned by the insured if the insured is responsible for the line due to a municipal service agreement or contract.

The basic coverage limit is $ 10,000 per loss but can be increased to $ 25,000 or $ 50,000. The prices seem to be company-specific and are adjusted based on the age of the home. Newer homes (15 years or older) receive a 25% credit for this coverage. Homes over the age of 45 see that the coverage rate for this coverage has doubled.

Revised forms and inscriptions

ISO revised 120 forms and statements with this archive. While this may sound like a lot of reading may be required, these revisions can be grouped, so this review will not be as bad as it sounds.

Revision definition of "Motor vehicle liability"
In a previous archive ISO revised and extended the definition of motor vehicle liability to include (or exclude) maintenance, coating, operation, use, loading or unloading of such vehicle or craftsmanship of any person . According to some transport companies, the revised wording removed the coverage that the insured should or could reasonably expect.

The current wording can be interpreted as covering the coverage of host situations as it removes the coverage for the use of a motor vehicle by " person . "" Each person "includes someone other than the insured. If a party guest drinks too much and is involved in an accident after leaving the party, the homeowner / insured can be held liable for damage or injury as the host of the party. The current wording will not (or can be interpreted to not ) provide protection for the insured homeowner.

In order to remedy this obvious lack of coverage which the insured had in previous forms and which can or can reasonably be expected of the insured, ISO reorganized the definition. Motor vehicle liability was moved to a separate paragraph to specify that it only applies to motor vehicles used by an insured . The wording "any person" does not apply to cars.

This change was made in all HO forms and HO 34 02 – Approval of exceptions for model or hobby aircraft.

Definition of "Business" Revised to Address Mineral Rights
At present, the HO policy's definition of "Business" does not deal with the leasing of mineral rights. Because homeowners can lease mineral rights to third parties for extraction, ISO has redefined "business" to include such activities. All reference to "business" in the policy will include reference to the leasing of mineral rights.

According to ISO, this is not a change in coverage because leasing of mineral rights was not considered a covered activity before, it was simply not addressed. This review serves to clarify the intention.

All HO forms, HO 06 15 – Trust Coverage approval and HO 24 73 – Farmers Personal Liability Coverage approval are all revised as a result of this change.

Increasing dollar threshold for companies (TAC record)
A current exception to the business exclusion in the HO coverage form is a dollar threshold. The form currently states that the activity must generate more than $ 2,000 in total compensation during the twelve months prior to the insurance period. This threshold has existed for more than 20 years.

ISO increases the threshold to $ 5,000 with this application.

This revision applies to all forms of HO coverage and HO 24 73 – Farmers Personal Liability Coverage approval.

Coverage C Special limits and sub-limits (TAC article)
Certain limits within ISO HO coverage forms have not been increased in 20 or more years. Given the past, these limits have not kept pace with value. To remedy this, ISO makes the following changes.

Coverage C – Personal Property Special Limitations of Liability

Category Current Limit New Limit
Money etc. 200 $ ] $ 300
Securities etc. $ 1500 $ 2000
Jet skis and their trailers $ 1500 $ 2000
Trailers $ 1500 $ 2000
Theft of jewelery etc. $ 1,500 $ 2,000
Theft of firearms etc. $ 2,500 $ 3,000
Theft of cutlery etc. $ 2,500 3 $ 000
Commercial real estate in the residential area $ 2500 $ 3000
Commercial real estate away from the residential area $ 1500 Unchanged
Portable electronic equipment in motor vehicles $ 1500 $ 2000
Antennas, tapes, wires, discs, discs or other media $ 250 $ 300

In addition to the increase in the watercraft limit, there is also a new option to buy increased limits up to $ 5,000 via coverage C Increased special liability limits, HO 04 65 and HO 04 66.

Coverage C – Personal property in other places

Category Current limit New limit
Personal property in other dwellings Larger 10 % of C or $ 1,000 Larger 10% of C or 1 5 $ 00
Personal property in self-storage facility Greater 10% of C or $ 1,000 Greater 10% of C or $ 1,500

Section I (Property) Additional Coverage

Category [19659178] Current limit New limit
Removal of debris / removal of trees $ 500 per tree / $ 1,000 total $ 1,500 per tree / $ 3,000 total
Trees, shrubs and other plants (not HO-8) 5% but not more than $ 500 for a tree 5% but not more than $ 1500 for a tree
Trees, shrubs and other plants – HO-8 5 % but not more than $ 250 for a tree 5% but not more than $ 500 for a tree
Glass or safety glass material for HO-8 $ 100 $ 200
Fire Department Service Fee [19659182] $ 500 Unchanged
Credit card, electronic transfer card or access device, counterfeit and counterfeit money $ 500 [19659171] Removed from base policy – optional endorsement with a base limit of $ 1,000
Loss assessment [19659182] $ 1,000 $ 2,000
Landlord's furnishings (not HO-4, HO-6 or HO-8) [19659181] $ 2500 $ 3000

Section II (Liability) Additional Coverage

Category Current Limit New Limit
Damage to Others's Property $ 1,000 $ 5,000
Loss Assessment $ 1,000 $ 2,000

All six HO forms are revised due to these changes. A further 16 recommendations are being revised as a result of these changes.

Model or hobby aircraft and jet skis (Responsibility is TAC record)
ISO is revising both property and liability protection in connection with model or hobby aircraft and jet skis. On the property side, ISO coverage limits decrease; and on the liability side, ISO expands coverage to include model or hobby watercraft.

Currently, the only property limit applicable to model or hobby aircraft and jet skis is the limit of coverage C. Carriers are concerned as some of these crafts may be very costly. In response, ISO introduces a new classification under the section on special liability limitations within the parts for property coverage. The new forms will limit the coverage for these hobby or model aircraft or jet skis to $ 2,000.

This limit may be increased by approval. Obviously an extra premium is required.

Within the watercraft's exclusion of the current HO cover forms, there is no exception for model or hobby watercraft that exist for hobby or model aircraft. In the next version, ISO will add a specific exception for model or hobby watercraft to match the exception for model or hobby aircraft.

Revision of lack of coverage for motor vehicles in uncovered property (TAC article))
In a previous filing, ISO "coated" exclusive wording regarding auto equipment and parts. Although not intended, the wording was used to exclude damage to and destruction of car parts not attached to the vehicle.

Suppose, for example, that the insured has several car parts stored in the garage, such as a removable top, spare parts, etc. If these are damaged by a fire, the current policy language excludes coverage for these parts. According to ISO, this was not the intention of the wording.

To remedy this "overuse" of the exclusive wording, ISO revises the wording in the 2022 edition to clarify that the exclusion only applies to parts of or on the vehicle. Parts that are not connected to the vehicle are covered like all other personal property.

Virtual, digital or electronic currency
Virtual, digital and electronic currency did not exist functionally when the latest multi-state archiving was done. Although it may have existed in some form, it was not known, used or owned by individuals. Cryptocurrency has gained prominence in recent years.

ISO is now forced to deal with these "fuzzy" currencies and has chosen to do so by excluding them. Virtual currencies have been added to the list of properties not covered.

Additional cost of living (TAC record)
Current policy formulation within coverage D states that the policy will cover additional cost of living ” incurred by you . "You" is the name of the insured, so this wording suggested that the only person and the expenses covered were the named insured.

Worrying was the situation where the named insured has died but other insured are still covered by the insurance (which is granted under the policy provision on "Death"). ISO is revising the provisions on additional living expenses to indicate that it applies to expenses incurred by you and resident relatives or others under the age of 21 and in the care of you or resident relatives.

ISO states that this is an extension of

Credit card, electronic transfer card or access device, counterfeiting and counterfeit money coverage
Coverage for loss from use of these payment methods has been completely removed from the basic form HO (as seen in special border discussion). To obtain full coverage for these losses, the insured must purchase the revised HO 04 53 – Credit card, electronic transfer card or access device, counterfeit and counterfeit money cover endorsement.

The base limit within revised HO 04 53 will be $ 1000 (rather than $ 500 in the current HO form). The limit can be raised to $ 10,000 with the payment of an additional premium.

Renovation, conversion or repair (TAC article)
Current wording in HO excludes coverage for vandalism and harmful accident if the house has been vacant for more than 60 consecutive days. Furthermore, the language in question precludes the loss of glass or safety glass material for the same reason. However, the current language states that these exceptions do not do not apply to a dwelling that is "built."

"To be built" can potentially be seen as and limited to basic construction. This was not the intention of ISO. To clarify and reinforce that "construction" was intended to include properties that were renovated, renovated or repaired, ISO has specifically added this wording. Now the exception is, " A dwelling that is built, renovated, renovated or repaired is not considered vacant ."

Loss Settlement – Deductible (TAC Item)
ISO omformulerad förlustavräkning avseende tillämpningen av självrisken som en del av 2011 års arkivering. Denna omformulering gav några oavsiktliga konsekvenser, särskilt felaktig eller icke-tillämpning av självrisken, särskilt när försäkringsvärde (ofta felaktigt kallas medförsäkring) bestämmelsen tillämpades.

I arkiveringen 2011 avlägsnades ISO. frasen, " efter tillämpning av alla självrisker …." I den kommande ansökan har ISO återinfört den frasen för att klargöra att självrisken tillämpas innan betalning av en förlust, särskilt när försäkring-till-värde-bestämmelsen gäller.

I huvudsak införde ISO formuleringen för att stärka formeln: [19659002] Gjorde / borde x förlust – Avdragsgilla = Förlustbetalning

Ersättningskostnadströskelavsättning
Inom nuvarande HO utgör en av förlustavräkningsvillkoren att om fastighetsförlusten är mindre än 5% av det försäkringsbelopp som utförs och mindre än $ 2500 kommer försäkringsföretaget att betala ersättningskostnad även om fastigheten inte repareras eller byts ut. På samma sätt finns det en liknande bestämmelse som är tillämplig på skydd av personlig egendom när HO 04 90 (personliga egendomsersättningskostnader förlustavräkningsuppgifter) bifogas om att förlusten är mindre än $ 500 kommer transportören att betala ersättningskostnad även om fastigheten inte ersätts

ISO har åtagit sig att höja dessa gränser i den kommande arkiveringen. The real property limit is being increased to $5,000 and the personal property limit is increasing to $1,000 (when the HO 04 90 is attached).

Riding Lawn Mowers Off Premises (TAC Item)
In its 2000 multi-state revisions, ISO revised the motor vehicle exception to give back coverage when the vehicle was used solely to service a residence. The requirement that the mower be used solely to service a residence created a gap in protection; if the insured used a riding mower to mow the grass at their church or a vacant lot, there was no coverage.

To remedy this gap, ISO reworded the exception. Now the exception extends coverage to a riding lawn mower that is being used to mow a lawn. The “residence” requirement is removed.

Watercraft Liability Exclusion and Exceptions Revised (TAC Item)
The watercraft exceptions have long been a problem area within the homeowners’ coverage forms. Distinguishing between and among inboard, outboard, inboard-outdrive, jet pump and other motor types has created confusion. Additionally, the exceptions changed based on whether the craft was owned or not owned. In response to requests from the industry, ISO is revising the watercraft exclusion and exceptions within the form in an attempt to simplify the language.

The new exception language has been simplified. Coverage for watercraft is excluded unless the:

  • Watercraft is a sailing vessel less than 26 feet in overall length (owned or not owned).
  • Watercraft is a sailing vessel more than 26 feet in overall length provided the insured does NOT own it.
  • Watercraft is not a sailing vessel has engines or motors of 25 horsepower or less whether they are owned or non-owned.
  • Watercraft is not a sailing vessel with engines or motors of more than 25 horsepower that are not owned by the insured.
  • The watercraft is newly acquired with outboard engines or motors with 25 horsepower or more provided such engines or motors are reported to the insurer.

Beyond this change to the base form, ISO revised the HO 24 75 – Supplemental Watercraft Liability Coverage as part of this filing to assure the wording and coverages dovetail between the form and the endorsement.

Subrogation Waiver
Current poli cy language allows the insured to waive subrogation against a person only. Although the concept of “person” can include more than just a flesh and blood individual (i.e., a corporation, an association, etc.), ISO was asked to clearly expand the ability of the insured to wave subrogation to more than just flesh and blood persons.

The revised language allows the insured to waive subrogation rights against “…any person or organization….”

Earthquake Deductibles
Evidently there is (or was) confusion regarding the calculation of the earthquake deductibles in the HO 04 36 – Loss Assessment Coverage For Earthquake and the HO 04 54 – Earthquake Coverage endorsements. Currently these endorsements list the percentage deductible applicable to earthquake coverage. ISO has been told that these percentage deductibles confuse insureds who are accustomed to seeing and applying percentage deductibles as a percentage of the claim amount and not the limit.

ISO has sought to remedy this confusion by allowing the dollar deductible to be entered within the endorsements.

Although the industry knows that a 5% (or whatever) deductible represents 5% of the coverage limit, apparently this is confusing to the masses. Now the dollar amount can also be entered.

Home-Sharing Host Activities Endorsements
ISO introduced six home-sharing host activity endorsements in 2016. Each altered coverage for home-sharing activities and each applied and were attached to a different HO coverage form:

Home-Sharing Host Activity Endorsement HO Form to Which Endorsement Applied
HO 06 52 HO-2
HO 06 53 HO-3
HO 06 54 HO-4
HO 06 55 HO-5
HO 06 56 HO-6
HO 06 58 HO-8

In the upcoming 2022 multi-state revision, the wording found within each endorsement is incorporated into the HO coverage forms. As a result, all six endorsements are withdrawn.

After this revision, the various Broadened Home-Sharing Host Activities Coverage Endorsements (HO 06 62, HO 06 63, HO 06 64, HO 06 65, HO 06 66 and HO 06 68) will still be available to expand coverage.

Withdrawn Forms and Endorsements

As part of this filing and due also to many of the changes made in this filing, ISO is withdrawing 11 endorsements.

  • All six Home-Sharing Host Activity Endorsements: Wording of each endorsement is being incorporated into the applicable base form as discussed previously.
  • HO 04 14 – Special Computer Coverage: The need for this endorsement has passed because the coverage is available under other forms.
  • HO 04 62 – Scheduled Personal Property Endorsement: All information can be scheduled on the HO 04 61 Scheduled Personal Property Coverage thus this endorsement is no longer necessary.
  • HO 04 85 – Fire Department Clause: Industry related to ISO this was a public protection class issue and not a coverage issue.
  • HO 12 45 – Change Endorsement: Evidently this endorsement is not used by the carriers, thus it no longer serves its intended purpose.
  • HO 12 76 – Homeowners Rating Information: Evidently carriers no longer require this form.

March 2022 Will Be Here Soon

ISO has made a lot of very good changes within this filing. Many of these are the result of your TAC team’s activity. Although March 2022 sounds like a long way off, it’s closer than it seems. Get ready for the change.

This article also appeared in Big I Virtual University’s Insurance Illustrated newsletter. Insurance Illustrated is a weekly newsletter published by Big I’s Virtual University containing key coverage information and other technical topics important to the insurance industry. Distributed every Friday, Insurance Illustrated is available to anyone who subscribes, and it is FREE. For current coverage and policy related insights from the Big I, subscribe to the Insurance Illustrated newsletter today.

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