2 Hour Webcast
FAIA
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Per DFS requirements, you'll need to sign an affidavit for
us to process your CE.
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Please fax the affidavit to 850-668-2852 OR mail it to PO
Box 12129, Tallahassee, FL, 32317
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OR scan it to a .pdf file and email it to
classroom@faia.com. Electronic Submission.
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Be sure to complete all the required information and sign
it below. The affidavit is located on the FAIA website,
www.faia.com, under Education.
We need this form to be sent within three (3) business
days.
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Overview of ISO Homeowners Program
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HO-3 Special
HO-4 Renter
HO-5 Open Perils
HO-6 Condo
HO-8 Modified
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Before it’s said and done we will have covered:
Section I Property Coverages
Section I Perils Insured Against
Section I Exclusions
Section I Conditions
Section II Liability Coverages
Section II Exclusions
Section II Additional Coverages
Section II Conditions
Section I and II Conditions
Endorsements
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11. "Residence premises" means:
a. The one family dwelling where
you reside;
b. The two, three or four family
dwelling where you reside in at
least one of the family units;
or
c. That part of any other building
where you reside; and which is
shown as the "residence premises"
in the Declarations.
"Residence premises" also includes
other structures and grounds at
that location.
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It includes not one but up to four family
dwelling units where the named insured must
reside in one.
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Coverage A Dwelling includes permanently attached items
such as:
plumbing
heating,
cooking, and cooling equipment
tile
Cabinets
lighting fixtures
Awnings
security alarm
Intercom
central vacuum system
fences
patios and indoor hot tubs or pools.
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2. We do not cover land, including land on
which the dwelling is located.
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2. We do not cover land, including land on which the
dwelling is located.
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69O-167.009 Mortgage Fire Insurance Requirements
Limited
No mortgage lender shall, in connection with any
application for a mortgage loan in this state which is
secured by a mortgage on residential real estate
located in this state, require any prospective
mortgagor to obtain by purchase or otherwise a fire
insurance policy in excess of the replacement value
of the covered premises as a condition for granting
such a mortgage.
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Coverage B insures other
structures on the residence
premises set aside from the
dwelling by clear space.
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We cover other structures on
the "residence premises" set
apart from the dwelling by
clear space. This includes
structures connected to
the dwelling by only a fence,
utility line, or similar
connection.
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Coverage B Exclusions
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“Business” means:
A trade, profession or
occupation engaged in on a
full-time, part-time or
occasional basis;
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5. "Insured" means:
a. You and residents of your household who
are:
Your relatives; or
(2) Other persons under the age of 21 and in your care or the
care of a resident of your household who is your relative;
b. A student enrolled in school full-time, as defined by the
school, who was a resident of your household before moving out
to attend school, provided the student is under the age of:
(1)24 and your relative; or
(2) 21 and in your care or the care of a
resident of your household who is your
relative; or
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An unnamed spouse has insured status
(“you”) so long as he or she is a resident of
the named insured’s household.
If an unnamed spouse leaves, without intent
to return, that person has no status whatever
under the policy.
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With the dwelling having a
stated limit in the declarations,
Coverage B has a limit of 10% of
the Coverage A limit.
This 10% limit applies
collectively to all other
structures at the residence
premises.
The 10% is in addition to
coverage A limit.
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10% for
usually
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b. Self-storage Facilities
Our limit of liability for personal property
owned or used by an "insured" and located
in a self-storage facility is 10% of the limit
of liability for Coverage C, or $1,000,
whichever is greater. However, this
limitation does not apply to personal
property:
(1) Moved from the "residence premises"
because it is:
(a) Being repaired, renovated or rebuilt;and
(b) Not fit to live in or store property in;or
(2) Usually located in an "insured's"
residence, other than the "residence
premises".
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10% in storage unit would not apply in cases such as:
Personal property is located in a warehouse which is
not a self-storage facility.
Personal property is in a self-storage facility because
the main dwelling had suffered a fire loss and
property was removed during the repair process.
A college student in another city stores his/her
property in a self-storage facility over the summer.
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10% in storage unit would not apply in cases
such as:
Personal property is in a moving truck.
Personal property is stored in a neighbor's
garage.
Personal property is in a beach house or
hotel room for a week.
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Review Time
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1. What doesn’t the homeowners policy cover
that shocks a lot of bankers?
A. Wind
B. Land
C. Money
D. Trees
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1. What doesn’t the homeowners policy cover
that shocks a lot of bankers?
A. Wind
B. Land
C. Money
D. Trees
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2. “Residence premises” can include up to
how many family dwelling units if you reside
in at least one.
A. 3
B. 2
C. 4
D. 1
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2. “Residence premises” can include up to
how many family dwelling units if you reside
in at least one.
A. 3
B. 2
C. 4
D. 1
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3. Coverage B-Other Structures usually has a
limit of ______% of the Coverage A Limit.
A. 30%
B. 20%
C. 40%
D. 10%
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3. Coverage B-Other Structures usually has a
limit of ______% of the Coverage A Limit.
A. 30%
B. 20%
C. 40%
D. 10%
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Special Limits
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a. $200 on money, bank notes, bullion, gold
other than goldware, silver other than
silverware, platinum other than platiumware,
coins, medals, scrip, stored value cards and
smart cards.
The limit for items in this category may be
increased with endorsement HO 04 65 (or HO
04 66) from $200 up to $1,000 in increments
of $100.
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b. $1,500 on securities, accounts, deeds,
evidences of debt, letter of credit, notes
other than bank notes, manuscripts,
personal records, passports, tickets and
stamps. This dollar limit applies to these
categories regardless of the medium (such
as paper or computer software) on which
the material exists
The limit for items in this category may be
increased with endorsement HO 04 65 (or HO 04
66) from $1,500 up to $2,500 in increments of
$100.
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c. $1,500 on watercraft of all types, including
their trailers, furnishings, equipment and
outboard engines or motors.
d. $1,500 on trailers or semitrailers not used
with watercraft of all type.
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e. $1,500 for loss by theft of jewelry,
watches, furs, precious and semi-precious
stones.
The theft limit for property in this category
may be increased with endorsement HO 04
65 (or HO 04 66) from $1,500 up to $5,000,
but the limit remains $1,000 per article.
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f. $2,500 for loss by theft of firearms and
related equipment.
The theft limit for firearms may be increased
from $2,500 up to $6,500 with endorsement
HO 04 65 (or HO 04 66).
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g. $2,500 for loss by theft of silverware,
silver-plated ware, goldware, gold-plated
ware, platinumware, platinum-plated ware
and pewterware. This includes flatware,
hollowware, tea sets, trays and trophies
made of or including silver, gold or pewter.
The theft limit for property in g. may be
increased from $2,500 up to $10,000 with
endorsement HO 04 65 (or HO 04 66).
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h. $2,500 on property, on the "residence
premises," used primarily for "business"
purposes.
For item h., the limit for business property on
premises may be increased up to $10,000
with endorsement HO 04 12.
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i. $1,500 on property, away from the
"residence premises", used primarily for
"business" purposes. However, this limit
does not apply to antennas, tapes, wires,
records, disks or other media that are:
(1) Used with electronic equipment that
reproduces, receives or transmits audio,
visual or data signals; and
(2) In or upon a "motor vehicle".
For item h., the limit for business property on
premises may be increased up to $10,000 with
endorsement HO 04 12.
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j. $1,500 on portable electronic equipment
that:
(1) Reproduces, receives or transmits
audio, visual or data signals;
(2) Is designed to be operated by more
than one power source, one of which is
a "motor vehicle's" electrical system;
and
(3) Is in or upon a "motor vehicle".
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k. $250 for antennas, tapes, wires, records,
disks or other media that are:
(1) Used with electronic equipment that
reproduces, receives or transmits audio,
visual or data signals; and
(2) In or upon a "motor vehicle".
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“Motor Vehicle”
a.
A self-propelled land or amphibious
vehicle; or
b.
Any trailer or semitrailer which is being
carried on, towed by or hitched for towing by
a vehicle described in a. above.
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How Deductibles Apply to the Special Limits
Coverage C- $75,000
$250 Deductible
$2,500 jewelry, $500 cash, $1,000 other
personal property totaling $4,000
According to Special Limits only $1,500 can be
collected for jewelry and $200 for cash.
This leaves $1,300 EXCESS
Since this loss exceeds the limits, the $250 can
be applied against the excess and doesn’t reduce
the special limits amount.
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Property Not Covered
Property Not
Covered
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4. Property Not Covered
We do not cover:
a. Articles separately described and
specifically insured, regardless of the limit for
which they are insured, in this or other
insurance;
Articles means specific, identifiable objects,
each described separately and insured
individually.
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b. Animals, birds or fish;
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f. Property of roomers, boarders and other
tenants, except property of roomers and
boarders related to an "insured“;
g. Property in an apartment regularly rented
or held for rental to others by an "insured",
except as provided in E.10. Landlord's
Furnishings under Section I – Property
Coverages;
h. Property rented or held for rental to others
off the "residence premises";
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i. "Business" data, including such data stored
in: (1) Books of account, drawings or other
paper records; or (2) Computers and related
equipment. We do cover the cost of blank
recording or storage media, and of
prerecorded computer programs available on
the retail market;
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j. Credit cards, electronic fund transfer cards
or access devices used solely for deposit,
withdrawal or transfer of funds except as
provided in E.6. Credit Card, Electronic
Fund Transfer Card Or Access Device,
Forgery And Counterfeit Money under Section
I – Property Coverages; or
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k. Water or steam.
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Coverage D applies to the
insured exposure to a
financial loss, apart from the
property damage itself, if the
insured cannot live in the
residence premise due to
damage.
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Coverage D applies only if the damage is the
result of a loss that is covered under Section
I.
Coverage D does not apply if:
1. damage to property simply prevents access
to the residence (bridge down)
2. damaged premises is not the residence
premises (rented vacation
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30%
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1. Additional Living Expense
If a loss covered under Section I makes that
part of the "residence premises" where you reside
not fit to live in, we cover any necessary
increase in living expenses incurred by you so
that your household can maintain its normal
standard of living.
Payment will be for the shortest time required
to repair or replace the damage or, if you
permanently
relocate, the shortest time required
for your household to settle elsewhere.
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2. Fair Rental Value
If a loss covered under Section I makes that
part of the "residence premises" rented to others
or held for rental by you not fit to live in, we
cover the fair rental value of such premises
less any expenses that do not continue while it
is not fit to live in.
Payment will be for the shortest time required
to repair or replace such premises.
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3. Civil Authority Prohibits Use
If a civil authority prohibits you from use of
the "residence premises" as a result of direct
damage to neighboring premises by a Peril
Insured Against, we cover the loss as
provided in 1.Additional Living Expense and
2. Fair Rental Value above for no more than
two weeks.
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4. Loss Or Expense Not Covered
We do not cover loss or expense due to
cancellation of a lease or agreement.
The periods of time under 1. Additional
Living Expense, 2. Fair Rental Value and 3.
Civil Authority Prohibits Use above are not
limited by expiration of this policy.
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There are 12
additional
coverages.
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1. Debris Removal
a. We will pay your reasonable expense for
the removal of:
(1) Debris of covered property if a Peril
Insured Against that applies to the damaged
property causes the loss; or
(2) Ash, dust or particles from a volcanic
eruption that has caused direct loss to a
building or property contained in a
building.
This expense is included in the limit of liability
that applies to the damaged property.
If the amount to be paid for the actual damage
to the property plus the debris removal
expense is more than the limit of liability for
the damaged property, an additional 5% of
that limit is available for such expense.
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Here are the key points to remember about this
section:
1. Removal coverage applies only to the debris of
covered property.
2. If there is no damage to covered property or
the cause of loss is not a peril insured against,
debris removal does not apply.
3. Coverage is not restricted to debris that is
located on the residence premises.
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If a tree is blown down by wind or hail it is
not covered and a tree owned by the
neighbor is not covered property of the
insured but this section makes some
exceptions up to 1,000.
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The tree has to either damage a
covered structure or must block
a driveway or ramp designed to
assist the handicapped.
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2. Reasonable Repairs
a. We will pay the reasonable cost incurred by
you for the necessary measures taken
solely to protect covered property that is
damaged by a Peril Insured Against from
further damage.
b. If the measures taken involve repair to
other damaged property, we will only pay if
that property is covered under this policy
and the damage is caused by a Peril Insured
Against. This coverage does not:
(1) Increase the limit of liability that applies
to the covered property; or
(2) Relieve you of your duties, in case of a
loss to covered property, described in
B.4. under Section I – Conditions.
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This is a “post loss” benefit.
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This is the part of the policy
where agents heard the following:
“I need 4 new pine trees. They
were all blown down during
Hurricane (Insert any one). “
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The aggregate limit is 5% of the Coverage A
limit provided as an additional amount of
insurance with sublimit of $500 for loss to
any one tree, shrub or plant.
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4. Fire Department Service Charge
We will pay up to $500 for your liability assumed
by contract or agreement for fire department
charges incurred when the fire department
is called to save or protect covered
property from a Peril Insured Against. We do
not cover fire department service charges if the
property is located within the limits of the city,
municipality or protection district furnishing the
fire department response.
This coverage is additional insurance. No deductible
applies to this coverage.
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5. Property Removed
We insure covered property against direct
loss from any cause while being removed
from a premises endangered by a Peril
Insured Against and for no more than 30 days
while removed.
This coverage does not change the limit of
liability that applies to the property being
removed.
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Up to 30 days.
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It is not required that the card
have been stolen; any basis on
which it is subjected to
unauthorized use is covered.
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$1,000
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Covered Perils:
Example #1: Sue has an HO-3 policy and is
assessed for fire damage to the HOA
clubhouse. Since fire is a covered peril under
her HO-3 her policy responds less deductible.
Example #2: Sue is assessed for flood
damage to the same clubhouse. Since flood is
not a covered peril under her HO-3 there is
no coverage.
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Assessments
Example, if a clubhouse were damaged by fire
and the HOA made an initial assessment of
$3,500 the homeowners policy pays the
$1,000 limit (assuming it has not been
increased). If, three months later, another
assessment is made for the same fire loss
there is not an additional $1,000 available for
another assessment.
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"an abrupt falling down or
caving in, with the result that
the building or part of the
building cannot be occupied for
its intended use."
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Additional wording to ISO policy :
“of a building or any part of a building”
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damage to, or by, glass is
actually a result, rather
than a cause.
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10. Landlord's Furnishings
We will pay up to $2,500 for your appliances,
carpeting and other household furnishings, in
each apartment on the "residence premises"
regularly rented or held for rental to others by
an "insured", for loss caused by a Peril Insured
Against in Coverage C, other than Theft.
This limit is the most we will pay in any one
loss regardless of the number of appliances,
carpeting or other household furnishings involved
in the loss.
This coverage does not increase the limit of liability
applying to the damaged property.
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The insured must reside in one unit; however,
the others may be rented.
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Gurn’s O&L problems:
$200,000 house sustained $50,000
of damage in the fire.
$50,000 would put the house back
just as it was, but contractor says it
will take an additional $25,000 to
bring the house up to code.
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12. Grave Markers
We will pay up to $5,000 for grave markers,
including mausoleums, on or away from the
"residence premises" for loss caused by a
Peril
Insured Against under Coverage C.
This coverage does not increase the limits of
liability that apply to the damaged covered
property.
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Review Time
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1. The 2011 ISO Homeowners gives how
much coverage for personal property located
in a storage unit?
A. 50%
B. 100%
C. 10%
D. 30%
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1. The 2011 ISO Homeowners gives how
much coverage for personal property located
in a storage unit?
A. 50%
B. 100%
C. 10%
D. 30%
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2. How much coverage is given on securities,
accounts, deeds ect?
A. 500
B. 1500
C. 2500
D. 0
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2. How much coverage is given on securities,
accounts, deeds ect?
A. 500
B. 1500
C. 2500
D. 0
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3. Which of the following is not an Additional
Coverage?
A. Trees, shrubs, and other plants
B. Credit Card
C. Boats
D. Fire Department
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3. Which of the following is not an Additional
Coverage?
A. Trees, shrubs, and other plants
B. Credit Card
C. Boats
D. Fire Department
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The state of Florida has taken a very strong
position on the issue of unauthorized
entities. An unauthorized entity is an
insurance company that is not licensed by the
Florida department of financial services.
Agents and brokers have responsibility for
conducting reasonable research to ensure
that they are not writing policies or placing
business with unauthorized entities. Lack of
careful screening can result in significant
financial loss to Florida residents due to
unpaid claims and/or theft of premiums.
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Agents may be held liable when representing
these unauthorized entities. It is the agents
and brokers responsibility to give fair and
accurate information regarding the
companies they represent. Any question
about the authorized status of a company can
be checked by calling the Florida department
of financial services at 877-693-5236 or for
out of state agents, 800-413-3089 .We urge
all agents and brokers to adhere to this
admonition.
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For more information on unauthorized
entities go to FAIA’s website at www.faia.com
and under the Education section you will find
a handout that you can download.
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
Per DFS requirements, you'll need to sign an affidavit for
us to process your CE.

Please fax the affidavit to 850-668-2852 OR mail it to PO
Box 12129, Tallahassee, FL, 32317

OR scan it to a .pdf file and email it to
classroom@faia.com. Electronic Submission.


Be sure to complete all the required information and sign
it below. The affidavit is located on the FAIA website,
www.faia.com, under Education.
We need this form to be sent within three (3) business
days.
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Thanks for attending!
Jeff Odom
jodom@faia.com
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