ISO HOMEOWNERS FORMS ELIGIBILITY

(March 2022)

The eligibility rules for Insurance Services Office's homeowners program vary by type of policy and occupancy. The Homeowners program rules allow insurers to write coverage for:

· Owner occupant–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued to an owner-occupant of a dwelling which is used exclusively as a private residence. The residence can be a 1, 2, 3 or 4 family dwelling.

· Purchasers under contract–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued to a purchaser under contract. The HO 04 41–Additional Insured Residence Premises endorsement should be added to show the titleholder (contract seller) as an additional insured.

· The occupant of a dwelling under a life estate arrangement–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued to the occupant of a dwelling under a life estate arrangement. The term life estate refers to situations where an individual holds full rights to the possession and use of property for the length of his or her natural lifetime. Property, such as homes, possessed by the way of a life estate, reverts back to the original owner (or the owner’s estate or heirs) after the life estate-holder’s death.

· During construction–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued for a dwelling in the course of construction. The policy has to be issued only in the name of the dwelling’s intended owner-occupant.

· Tenant occupants–A homeowners policy Form HO 00 04 or HO 00 14 are used for tenants.

· Co-owner occupants–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued to only one of the co-owners of a 2, 3 or 4 family dwelling when the co-owners do not occupy the same apartment. In order to cover the liability interests of the other co-owners in the building for premises liability attach endorsement HO 04 41–Additional Insured. A separate homeowners policy with form HO 00 04 may be issued to the second co-owner.

· Joint owner non-occupants–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be issued when a dwelling is owned by more than one individual and none of the owners occupy the dwelling.

· Condominium or cooperative unit-owners–A homeowners policy Form HO 00 06 is used for condominium or cooperative unit owners.

· Seasonal dwellings–A separate homeowners policy (assuming one exists for the main or legal residence) must be written to cover a secondary residence. A homeowners policy Form HO 00 02, HO 00 03, HO 00 05 or HO 00 08 may be used.

· Occupants under a trust agreement–A homeowners policy Form HO 00 02, HO 00 03, HO 00 05, HO 00 06 or HO 00 08 may be issued. HO 06 15–Trust Endorsement must be attached.

Related Article: ISO Residence Held in Trust Endorsement

· Owners with tenants–A one family owner occupied dwelling can have no more than two boarders. A two, three or four family dwelling can have no more than two families within each separate unit. If only one family is in a unit, that family can have no more than two boarders in the unit with them.

INCIDENTAL BUSINESS OCCUPANCIES

Depending upon the individual insurance company, coverage under a homeowners policy may be extended to include a specified business that is conducted by an insured on the residence premises.

HO 24 71–ISO Business Pursuits Endorsement

HO 04 97–ISO Home Day Care Coverage Endorsement

Covering Home-Based Businesses

MULTIPLE INSURERS

Coverage under Section I (property coverage) of a homeowners policy may be divided between two or more companies on a percentage basis, subject of course to the consent of the companies involved.

Related Article: HO 04 78–Multiple Company Insurance

Note: When this form is used, it must be attached to all participating policies.