Includes copyrighted material of Insurance Services Office, Inc., with its permission.

 October 14, 2011

Provisions Applicable to the Property Coverage

 Summary: There are nineteen conditions that apply only to the section I property coverages of the Insurance Services Office homeowners forms. This discussion presents a brief description of each of the section I conditions. Changes from the 2000 edition are indicated.

Topics covered:

Insurable Interest and Limit of Liability

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 A. Insurable Interest and Limit of Liability

 Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss:

1.To an "insured" for more than the amount of such "insured's" interest at the time of loss; or

2.For more than the applicable limit of liability.

 Analysis

 The first condition limits the insurer's liability for any section I loss in two ways. First, the insurer is not liable for more than the amount of an insured's interest in the property (see Interest Feature of Property Policies for a discussion of insurable interest) or, second, for more than the applicable limit of liability.

 The 1991 form referred to "the" insured, which potentially led to confusion if the insured—that is, the named insured, had no interest in the subject property. The 2000 form referred to "an" insured.

 Deductible

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