THE HOMEOWNERS POLICY

The Homeowners 3 – Special Form

A type of Homeowners 3 – Special Form for the American Association of Insurance Services, Inc (AAIS) - HO 00 03 01 06 is included used as a basis for this analysis. Samples are available here. The following is an analysis of the important parts of the basic homeowner’s insurance policy. Unlike the Standard Fire Insurance policy the Homeowners 3 is written in “easy to read” language rather than precise legal wording. The following analysis is presented to assist the insured in reading the policy but is not a replacement for actually reading the entire wording of the policy with consideration of the facts of the loss to which the policy might apply.


The Insuring Agreement




This policy, subject to all of its "terms", provides the described insurance coverages during the policy period. In return "you" must pay the required premium. Each of the Principal Coverages described in this policy applies only if a "limit" is shown on the "declarations" for that coverage.



Definitions


The basic wording includes twenty-two terms whose special meaning is defined by the policy.



Described Location
"Described location" means the one- to four family house, the townhouse, or the row house where "you" reside and which is shown on the "declarations" as the "described location". It includes related private structures and grounds at that location.



We" cover the residence on the "described location". This includes additions attached to the residence and built-in components and fixtures, as well as building materials and supplies located on or adjacent to the "described location" for use in the construction, alteration, or repair of the residence or related private structures on the "described location".


After this detail explains what is covered then the policy explains what is not covered.


This video discusses, in detail, the wording of the basic homeowners policy.

POLICY