Topics covered:

Overview

Fire or lightning

Windstorm or hail

Explosion

Riot or civil commotion

Aircraft

Vehicles

Smoke

Vandalism or malicious mischief

Theft

Falling objects

Weight of ice, snow or sleet

Accidental discharge

Rupture of heating or air conditioning systems

Freezing

Artificially generated current

Volcanic eruption

Overview

The ISO homeowners program provides progressively broader levels of coverage with respect to the perils insured against. At the base are the perils common to all forms: fire or lightning; windstorm or hail; explosion; riot or civil commotion; vehicles; aircraft; smoke; vandalism or malicious mischief; theft; and volcanic eruption. These perils are insured against under modified coverage form HO 00 08, although the theft peril in that form is subject to restrictions not found in other homeowners forms.

The second level of coverage is included in broad form HO 00 02, contents broad form HO 00 04, condominium unit owners form HO 00 06, and the personal property coverage of special form HO 00 03. This level of coverage incorporates the broad form perils, including both additional perils not covered in the modified form and expanded definitions of many of the basic perils. The added perils are: falling objects; weight of ice, snow, or sleet; plumbing discharge; rupture of steam or hot water heating systems, air conditioning systems, or water heaters; freezing of plumbing or similar devices; and damage from artificially generated electricity. There is broader coverage than is provided in the modified form under the perils of vehicles and smoke.

The third level of coverage is represented by coverages A (dwelling) and B (other structures) of special form HO 00 03, and by coverages A, B, and C of comprehensive form HO 00 05. The same level of coverage is available for unit owners coverage A (dwelling and other structures) when form HO 00 06 is endorsed by HO 17 32 05 11. Special personal property coverage for unit owners can be added by endorsement HO 17 31 05 11. Tenant homeowners can also purchase open perils coverage for contents through endorsement HO 05 24 05 11.

Perils at this level of coverage are not named; only restrictions on coverage are specified, by means of exclusions, limitations, and exceptions applying to certain categories of property and certain causes of loss. Any loss to insured property not reached by one of these restrictions is covered. With the forms providing open perils coverage, it is up to an insurer to prove a loss is excluded; with named perils coverage, the burden of proof is on an insured to prove a loss is covered. 

The named perils that follow are discussed in their order of appearance in the forms. They apply to dwellings, other structures, and personal property in form HO 00 02. As named perils they apply only to personal property in form HO 00 03; some of them also appear in the “section I — perils insured against” section of that policy. These instances are noted where relevant.

Fire or Lightning

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1.Fire or lightning.

Analysis

Three elements must be present for a fire to occur — oxygen, fuel, and a heat source. Combustion results. Closely akin to “fire” is “scorch”; however, something may be scorched without actually bursting into flame. Scorching may be the result of intense heat without actual combustion, as when curtain fabric is scorched by the sun's rays coming through a window.

“Direct loss caused by fire” is understood to include damage that may be caused by firefighters in extinguishing the blaze. Though “fire” is not a defined term in the policy, questions of coverage involving this peril often center on the doctrine of “friendly” vs. “hostile” fire. A friendly fire is one that is intentionally kindled and remains in the place it was intended to be. A hostile fire, on the other hand, is one that is either not confined to the place intended, or one not started intentionally. Though many courts have held that coverage is intended only for the “hostile” fire, this is by no means definitive.

In one case, excessive heat was held to be a fire loss. A defective thermostat failed to cut the heat in a hog barn, and several sows died. The court ruled that the loss was covered under the peril of fire. The case is Engel v. Redwood County Farmers Mutual Ins. Co., 281 N.W.2d 331 (Minnesota, 1979). For further information, see What is 'Fire'?.

Windstorm or Hail