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6.0 Homeowners Policy

Learning Objectives​

Upon completing this chapter, you should be able to:

  1. Explain the purpose of a Homeowners policy and identify its eligibility requirements.
  2. Compare the coverage provided by the different Homeowners policy forms.
  3. Describe Coverages A, B, C, and D under Section I—Property Coverages.
  4. Describe Coverages E and F under Section II—Liability Coverages.
  5. Identify the Additional Coverages, Conditions, and Exclusions that apply to Sections I and II.
  6. Explain how common Homeowners endorsements modify or expand policy coverage.
  7. Identify the insurance options available for mobile homes.

Overview​

The Homeowners policy series expands upon the property protection offered by the Dwelling Program by providing broader coverage for eligible residential properties. A Homeowners policy is a package policy that automatically combines Section I—Property Coverages with Section II—Liability Coverages. Combining these protections in one policy may reduce premiums, minimize potential coverage gaps, and provide the convenience of managing several types of insurance under a single contract.

This chapter examines the coverages and policy provisions included in the six Homeowners forms, along with commonly used endorsements that modify or expand the coverage provided.

An Insurance Story

Sofia and Liam understand the importance of protecting themselves against future property losses and the financial consequences of being legally responsible for injuries to others. These expenses could exceed what they are able to pay out of pocket. A Homeowners policy provides broad protection against both property and liability losses. It also helps Sofia and Liam satisfy their mortgage lender's requirement that insurance be maintained on the home as a condition of financing the purchase.