Summary: The coverages of the standard homeowners forms (Forms HO 00 02, 03, 04, 05, 06, 08, and 14) are designed to provide the kinds of insurance protection that most homeowners will need. However the needs of individual insureds can diverge, so endorsements are used to tailor coverage to meet these needs. Additionally, insurers may use endorsements to limit coverage, like when the windstorm or hail exclusion endorsement is attached to coastal homeowners policies.
The endorsements discussed here are those under the jurisdiction of Insurance Services Office (ISO). They do not constitute the extent of tailoring possible with respect to homeowners forms. The introduction in the ISO homeowners manual to the program's general rules state that "in all cases not specifically provided for in this manual," the rules, rates, forms, and endorsements of individual insurers govern each coverage. This makes it possible for insurers to develop special endorsements as the need arises, assuming, of course, that the proposed risk is considered insurable and that an appropriate premium can be obtained.
The homeowners program was revised in 2022, with previous versions of 2011 and 2000. Comments relating to individual endorsements below are based on form designations and language of the 2022 ISO homeowners program unless otherwise indicated. The edition date of the 2022 endorsements are generally 03 22; the 2011 endorsements are generally 05 11. Differences from the 2011 program in language or coverage provisions are noted. This discussion is on multistate forms; endorsements limited to one or two states have not been included.
The endorsements are discussed in numerical order. Because there are so many endorsements, we have split the discussion into multiple sections:
Part 1 HO 03 12 to HO 04 26
Part 2 HO 04 30 to HO 04 49
Part 3 HO 04 50 to HO 04 66
Part 4 HO 04 77 to HO 04 99
Part 5 MH 04 01 to MH 04 47 Mobilehome Coverage
Part 6 HO 05 24 to HO 05 86
Part 7 HO 06 01 to HO 06 49
Part 8 HO 06 51 to HO 06 95
Part 9 HO 07 01 to HO 07 59 Home Business Insurance Coverage
Part 10 HO 24 01 to HO 24 70
Part 11 HO 24 71 to HO 34 03
Numerical list of Endorsements:
HO 05 24 03 22 Special Personal Property Coverage
HO 05 27 03 22 Additional Insured - Student Living Away From The Residence Premises
HO 05 28 03 22 Owned Motorized Golf Cart Physical Loss Coverage
HO 05 30 03 22 Functional Replacement Cost Loss Settlement
HO 05 31 03 22 Modified Functional Replacement Cost Loss Settlement
HO 05 41 03 22 Extended Theft Coverage For Residence Premises Occasionally Rented To Others
HO 05 46 03 22 Supplemental Landlord's Furnishings Coverage
HO 05 80 03 22 Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages, HO 05 81, HO 05 82, HO 05 84, HO 05 85, HO 05 86
HO 05 24 03 22 Special Personal Property Coverage
This optional endorsement was new in the 2000 program. It provided open perils coverage (with certain exclusions) for the personal property for a tenant insured, and changed the special limits of liability for jewelry, watches and furs, firearms, and silverware, goldware, etc., by adding "misplacing or losing" to the loss by theft coverage. The limits with the 2022 revision are $2,000 for jewelry, watches, furs, precious stones; $3,000 for firearms; and $3,000 for silverware, goldware, and the like.
Usual exclusions for open perils coverage apply, such as wear and tear, refinishing, or breakage of fragile items. The 2011 edition added an exclusion for nesting, infestation, or discharge or release of any waste products or secretions by any animals. This endorsement deletes the additional coverage for Collapse.
The endorsement may not be attached if the residence premises is rented or sublet. The insured must also occupy the residence premises that contains the covered property.
This endorsement can be used with form HO 00 04.
HO 05 27 03 22 Additional Insured - Student Living Away From The Residence Premises
This endorsement was new in the 2000 homeowners program. The 2000 homeowners forms include a student under age twenty-four away at school within the definition of "insured." This endorsement may be used to broaden that definition by removing the age and full-time student restrictions for relatives of the insured. For those in the insured's care or in the care of a resident relative, the under age 21 requirement still applies. The name, address, and school attended should be scheduled on the endorsement. The named person must have been a resident of the insured’s household before moving out to attend school.
This endorsement can be used with all forms except HO 00 08 and HO 00 14.
HO 05 28 03 22 Owned Motorized Golf Cart Physical Loss Coverage
This endorsement was new in the 2000 program. It provides open perils coverage for owned golf carts listed in the schedule, but allows the insured to select or decline coverage for collision. Collision means the physical contact of the golf cart with another object, or the upset of the golf cart without contact with another object. Accessories and equipment are also covered if, at the time of the loss, the accessories and equipment are at an insured's residence or in or upon a golf cart off the insured's residence. The limit for this property is 10 percent of the highest limit of liability shown in the schedule for any one cart.
Certain restrictions apply, among them: the cart must have been designed to carry no more than four persons, and not built or modified to exceed twenty-five miles per hour on level ground. There is no coverage for loss resulting from electrical or mechanical breakdown, overheating, freezing, vandalism or malicious mischief, inherent vice, animals, birds, vermin, insects, or rodents, and wear and tear, deterioration, mold and fungus. Damage to tires or wheels caused by contact with the ground is excluded. There is no coverage for the cart if, at the time of loss, it is being rented to others, raced, used to carry persons or cargo for a charge, or for any business purpose other than while on a golfing facility.
A $500 deductible applies separately to each scheduled cart, and replaces any other deductible provision in the policy that would be applicable to a loss covered under this endorsement. .
This endorsement can be used with all forms except HO 00 08 and HO 00 14.
HO 05 30 03 22 Functional Replacement Cost Loss Settlement
This endorsement provides building loss settlement on a functional replacement cost basis. The amount of insurance carried must be at least 80% or more of the functional replacement cost of the building.
Replacement cost may so far outstrip market value that to insure based on replacement would do a disservice to the insured, since it is unlikely that the home could be replaced exactly as it stands. Therefore, use of this endorsement provides the insured with the broad range of coverages available in the ISO program, yet allows a more realistic amount of insurance to be selected.
The Coverage A limit of liability is chosen based on "functional replacement cost," meaning the amount it would cost to repair or replace the damaged building with less costly common construction materials and methods that are functionally equivalent to obsolete, antique, or custom methods and materials used in the original construction of the building. For example, plaster walls would be replaced with dry wall, pocket doors with plain doors, etc. The loss settlement provisions substitute "functional replacement cost" anywhere "full replacement cost" appears.
This endorsement can be used with forms HO 00 02, HO 00 03, and HO 00 05.
HO 05 31 03 22 Modified Functional Replacement Cost Loss Settlement
Modified functional replacement cost loss settlement endorsement, HO 05 31, is virtually identical to HO 05 30, seen above, except that if the necessary amount actually spent to repair or replace is less than the actual cash value of the part of the damaged building, then the loss is settled on an actual cash value basis.
This endorsement can be used with forms HO 00 02, HO 00 03, and HO 00 05.
HO 05 41 03 22 Extended Theft Coverage For Residence Premises Occasionally Rented To Others
This endorsement removes the exclusion of coverage for theft from the part of a "residence premises" rented to someone other than an insured. Coverage is provided for loss by theft when all or part of the residence premises usually occupied by the insured is occasionally rented to others.
The change in the 2017 form excludes coverage if the property is rented to “home-sharing occupants”. The coverage does not apply if the part of the "residence premises" is regularly rented, though those terms are not defined. There is also no coverage for money, bank notes, gold, silverware, coins, and the like, securities, accounts, deeds, passports, stamps, or jewelry, precious or semi-precious stones, watches, or furs.
HO 05 46 03 22 Supplemental Landlord's Furnishings Coverage
Forms HO 00 02, HO 00 03, and HO 00 05 provide coverage for landlord’s furnishings in each apartment on the residence premises regularly rented to others of up to $3,000. This endorsement can be used to increase that limit in increments of $500, up to $10,000, per apartment. The schedule of this endorsement allows for listing each apartment separately along with a limit.
Remember that the additional coverage is for rental apartments on the "residence premises" as defined, so the endorsement could be used, for example, where an insured owns a four-unit building and resides in one of the units, but owns furnishings in the other apartments. If there is a total loss, however, the insured’s coverage C limit of liability is the most that will be paid. The coverage C perils, except for theft, apply.
Remember that a structure separate from the insured dwelling rented to anyone not a tenant of the dwelling is not covered unless used solely as a private garage. This endorsement cannot be used, therefore, to cover an insured’s property in that situation; other coverage, such as a dwelling fire policy, should be arranged.
This endorsement can be used with forms HO 00 02, HO 00 03, and HO 00 05.
HO 05 80 03 22 Property Remediation For Escaped Liquid Fuel And Limited Lead And Escaped Liquid Fuel Liability Coverages for all forms other than HO 00 04 and HO 00 06
HO 05 81 for use with HO 00 04
HO 05 82 for use with HO 00 06
HO 05 84, HO 05 85, HO 05 86, in IL, KS, MI, MN, MO, ND, OR, PA. HO 05 84 is for all forms other than HO 00 04 and HO 00 06. HO 05 85 applies to HO 00 04, HO 05 86 applies to HO 00 06.
There are six endorsements in this series. HO 05 80, HO 05 81, HO 05 82, HO 05 84, HO 05 85, and HO 05 86.; Since the variations in the endorsements reflect the differences in the underlying homeowners forms (for example, in HO 05 82 "unit" is used in the "residence premises" definition since that endorsement attaches to form HO 00 06), the following discussion is of a general nature.
These endorsements limit an insurer’s liability for injury or property damage resulting from escaped liquid fuel and lead poisoning or contamination. They provide limited remediation coverage ($10,000 aggregate; the limit may be increased to a maximum of $100,000) for an insured’s real or personal property, including land. (Under the HO 00 02, HO 00 03, and HO 00 05 coverages A and B, damage to the dwelling or other structures only resulting from pollution caused by one of the coverage C named perils is covered.) Rental property consisting of a one- to four-family unit may be included. The deductible applying to the peril of fire also applies to the property remediation. Additional living expense necessitated by the escape of liquid fuel is included in the limit of liability.
Liability in the aggregate amount of up to $50,000 (which may be increased to a maximum of $300,000) is provided for property damage or bodily injury resulting from lead absorption, ingestion, or contamination, or from an occurrence involving the escape of liquid fuel from a fuel system. Defense coverage is included in the aggregate limit. There is no medical payments coverage under this endorsement.