OVERVIEW OF THE ISO HOMEOWNERS PROGRAM

(March 2022)

The Insurance Services Office (ISO) Homeowners Program has, for decades, provided personal liability protection and various levels of direct physical loss coverage to residential property owner/occupants or to personal property (tenants). This package of property and liability coverages allows a typical insured to address the common exposures of owning or renting a residence.

Related Article: ISO Homeowners Forms Eligibility

POLICY CONSTRUCTION

ISO homeowner coverage is provided by issuing the following:

Applicable Insurer’s Declarations

Related Article: Homeowners Declarations Page

ISO HO Base Policy Form

HO 00 02–ISO Homeowners 2–Broad Form Coverage Analysis

HO 00 03–ISO Homeowners 3–Special Form Coverage Analysis

HO 00 04–ISO Homeowners 4–Contents Broad Form Coverage Analysis

HO 00 14–ISO Homeowners 4–Contents Comprehensive Form Coverage Analysis

HO 00 05–ISO Homeowners 5–Comprehensive Form Coverage Analysis

HO 00 08–ISO Homeowners 8–Modified Form Coverage Analysis

All mandatory state specific forms and endorsements
Optional endorsements

PRINCIPAL COVERAGES

Coverage A-Dwelling (inapplicable to HO 00 04, HO 00 14 and HO 00 06)—this portion of the policy protects the residence premises and attached structures. Coverage extends to materials or supplies that are located on or next to the residence. However, the material must be meant for constructing or modifying the residence.

Coverage B-Other Structures—other structures on the insured premises are protected under this coverage part if they are separated from the dwelling by a clear space. However, any business use of such structures bars coverage.

Coverage C-Personal Property—personal property owned or used by an insured is covered anywhere in the world. Protection may be extended to cover the property of others, a guest, or a residence employee if that property is at the residence premises occupied by an insured.

Personal Property Special Limits—modest sublimits apply to classes of property that are more susceptible to loss such as money, securities, business property, jewelry, fine art, collectibles, silverware, watches, coins, portable electronics, and other, similar property.

Coverage D-Loss of Use Coverage—if a covered loss makes that part of the residence premises unfit for living, the policy provides coverage for certain increases in living expenses and, if any part of the premises is rented out, for any loss of rental income.

The Special Form policy provides several additional coverages such as Debris Removal, Reasonable Repairs, Trees, Shrubs and Other Plants, Fire Department Service Charge, Property Removed, Credit Card, Fund Transfer Cards, Loss Assessment, Collapse, Glass or Safety Glazing Material and Landlord's Furnishings.

Coverage E - Personal Liability—The policy protects against claims or suits involving an insured for damages arising from his or her ownership or use of the insured residence as well as from other personal incidents of damage or injury involving third parties. The policy also provides a legal defense even if the suit is groundless, false, or fraudulent. The insurer has full authority to investigate and settle any claim or suit that it decides is appropriate.

Coverage F - Medical Payments to Others—The insurer will pay the necessary medical expenses incurred within three years from the date of an accident which causes bodily injury to a third party. Medical expenses include medical; surgical; x-ray; dental; ambulance; hospital; professional nursing; prosthetic devices; and funeral services.

AVAILABLE ENDORSEMENTS

Many endorsements are available to tailor a Homeowners policy.

UNDERWRITING

Underwriting a homeowners policy involves identifying the exposures, assessing the exposures, and placing the risk in the appropriate program made available by the applicable insurer.

RATING

ISO has a filed methodology to guide carriers in their rating of homeowners policy.