SINGLE FAMILY DWELLING OWNER OCCUPIED
Category: Personal Risks
Description of operations: An owner-occupied single-family dwelling provides living accommodations for an individual, a couple, one or more adults raising children, or a multi-generational family. The individuals living in the dwelling may be related by blood, marriage, or other arrangement such as adoption, foster parenthood, guardianship, or domestic partnership. The household may own one or more pets. Owner occupied means that the property owner(s) live on the property and do not lease or rent out the premises to others. The on-premises exposure includes the land and all structures on that land, such as a garage, storage shed, or swimming pool. Off-premises exposures include activities of the dwelling owner(s) and all members of the household, including students who live away from home as long as they are in school and are younger than 24 years of age.
Property exposure includes the dwelling, its contents, and any related non-business structures and their contents located on the premises. The most significant controllable hazards are fire and theft. The major uncontrollable hazards are windstorm, hail, snow and ice, flood, and earthquake. The age of the structure, its construction, and its maintenance can contribute to the potential for loss. Fire hazards include electrical wiring, heating, cooling, and cooking equipment. Fire department response time is longer in rural areas, contributing to the severity of loss. The location of the property, type of contents, and adequacy of locks and alarm systems are important when evaluating theft exposures. The property's location is the key to assessing its vulnerability to natural disasters such as wind, hail, snow and ice, flood, or earthquake. The premises should be built to current code. Vegetation should be trimmed and away from the structures. If the owner(s) has business-related property on the premises, a home business endorsement may be needed.
Inland marine exposure includes any antiques, collectibles, electronics, fine arts, firearms, furs, jewelry, musical instruments, silverware, and other types of property subject to sublimits and exclusions within the homeowners policy. As these items are often attractive theft targets, security features such as locks, alarms, storage arrangements, and off-premises and transit exposures should be reviewed. For unique or high-valued items, a current appraisal should be available to substantiate any loss. An inventory and picture record is important to document each item’s existence and to aid in its recovery.
Personal liability exposure arises from conditions at the premises and the actions of the members of the household, including pets. The age of any children, the social and civic organizations, and sports that the family participates in can all impact the loss potential. In addition, the type and breed of any pet(s) should be considered. Pools, trampolines, tree houses, playground equipment, non-licensed motorized vehicles, and similar recreational items must be secured to prevent young children from gaining unsupervised access.
Automobile exposures are from household members driving owned, rented, or borrowed vehicles or from loaning their vehicles to others outside the household. All drivers must be identified, licensed, and have acceptable MVRs. The type of vehicle, ownership, the principal driver, garaging location, miles driven, and type of driving must be considered when evaluating the exposure. Age and experience of each driver must be evaluated. Driving courses can assist drivers of any age. The exposure of household residents temporarily living away from the household, such as students away at college, is important to explore because of potential vehicle ownership, state compliance, garaging, and usage changes.
Minimum recommended coverage: Homeowners Policy, Personal Auto Policy, Personal Umbrella Policy
