Conditions Applicable to Property and Liability Coverages

Summary: The loss settlement provisions and conditions applying to the property and liability coverages of the American Association of Insurance Services (AAIS) homeowners forms are similar in many respects to those of the Insurance Services Office (ISO). There are, however, differences. Following is a discussion of the provisions and conditions that apply to the current 2006 edition of the AAIS homeowners program.

Topics covered:

Introduction What must be done in case of loss or occurrence Loss settlement provisions—Forms 8 and 5 Conditions applicable to all coverages Conditions applicable to property coverages only Conditions applicable to liability coverages only

Introduction

Although many of the AAIS policy provisions and conditions are similar to those found in the ISO homeowners forms, there are differences. For example, the ISO form states that the insured must, in case of loss to covered property, “protect the property from further damage.” Contrast this with the AAIS wording “take all reasonable steps to protect covered property at and after an insured loss…” For defined terms used in this article, see AAIS Homeowners Program; and see Liability Coverages—AAIS Homeowners.Personal Lines, Dwellings section.

The following discussion focuses on form HO 0003 01 06 the Special Form (similar to the ISO HO 00 03 10 00; the differences in loss settlement provisions of HO 0008, the Limited Form (similar to the ISO HO 00 08 10 00) and form HO 0005, the Special Building and Contents Form are indicated.

What Must Be Done in Case of Loss or Occurrence

The following are duties the named insured, or his or her representative, must carry out in event of a loss or claim.