BROWN O'HAVER Adjusters For THe Insured

Untitled Document

Insurance Dictionary

Untitled Document

Name

Email

Inquiry


Code

A B C D E F G H I J L M N O P R S T U W

HAZARD -A situation that increases the probability of a loss occurring arising from a peril. For example, slippery floors, unsanitary conditions, shingled roofs, congested traffic, unguarded premises, and uninspected boilers are all hazards.

HO-1 (Basic Fire Policy): This policy covers the dwelling, other structures such as garages, and personal property against fire, lightning, vandalism, malicious mischief, theft, and glass breakage. Loss of use and additional coverages are also included in all of the homeowners forms.

HO-2 (Broad): This policy covers the perils of HO-1 plus falling objects; weight of ice, snow, or sleet; accidental discharge from a plumbing, heating, air conditioning or sprinkler system (water from flood is excluded) or household appliance; tearing, cracking, burning, or bulging of a steam or hot water heating system; freezing of a plumbing; heating, air conditioning or sprinkler system or a household appliance; damage from artificially generated electricity; and volcanic eruption. Coverage for a number of the HO-1 perils (vehicles, smoke, glass breakage) is broadened in this form.

HO-3 (Special): This policy covers the dwelling and other structures on an all-risk perils basis. Personal property coverage includes the broad named perils insured under form HO-2, plus the peril of damage by glass or safety glazing material. Coverage on personal property may be added by attaching a separate endorsement.

HO-4 (Broad Coverage for Contents) Policy: This policy is designed primarily for tenants, and covers personal property and limited coverage for building additions, alterations, and improvements made by the insured. The named perils coverage on personal property is the same as that of HO-2.

HO-5 (Special) Policy: This policy is similar to the HO-3 policy but covers replacement cost of structures, without deduction for depreciation, and offers structure payments in excess of policy limits . Although this coverage is greater and the policy is generally better than an HO-3 policy, State Farm, in all it's policies, reserves its option to repair or replace the destroyed property. The contract of insurance actually can become a contract of construction, and the insurer can come onto a property to rebuild as a general contractor without input from the homeowner. Such a situation may result in hard feelings and/or legal action. In our adjusting experience, State Farm has enforced this provision on HO-5 policies, to the policy holder's detriment. Therefore, we suggest you consider this when deciding whether or not your insurer will be State Farm.

HO-6 (For Condominium Unit Owners) Policy: This policy is especially for residential condominium unit owners.

HO-8 (Modified Coverage): This policy is for homes not considered eligible for replacement cost coverage.

HOLD HARMLESS AGREEMENT - A contract under which the legal liability of one party for damages is assumed by the other party to the contract. This agreement does not apply nor govern the right an injured person to bring claim against both parties. It simply is an agreement between tow individuals that if one is forced to make payment, the other will reimburse him for the damages suffered.

HOME OFFICE - The place where an insurance company maintains its chief executive and general supervisory departments.

HOMEOWNERS POLICY - This is a Property and Liability Insurance contract that provides insurance against these perils.

HOUSEKEEPING - Maintenance, the general care, and cleanliness of the property that is insured.

A B C D E F G H I J L M N O P R S T U W

Untitled Document