The exclusions of homeowners policies are another area in which comparison shopping may help you make an informed choice of insurer. Homeowners insurance policies may vary widely in terms of how particular exclusions are worded or exceptions to exclusions are worded that have the practical effect of providing broader coverage.
The subject of exclusions is one in which homeowners insurers seek to compete with each other, although their competition is often not very transparent to the insurance consumer. It often requires actual comparison of specimen policy forms from various insurers to discern the differences in the scope of exclusions. Unfortunately, some insurers will not give out specimen copies of their policies and too few consumers take the time to ask for them.
EXCLUSIONS ADDED BY OTHER INSURERS
Some insurers' policies add exclusions not contained in the ISO HO 2 and HO 3 policies. For example, a relatively common exclusion precludes coverage for loss resulting from an increase in hazard at the insured premises that is within the knowledge or control of an insured. Affordable Insurance Company Claims
A methamphetamine lab is an example of one extreme. Such activities are criminal in nature and involve the use of highly flammable and explosive chemicals. Failing to replace broken or nonfunctioning door locks is another example - failing to secure premises renders them more vulnerable to theft and vandalism losses.
Under the law of most states, where an exclusion of this nature refers to knowledge or control of an insured, the knowledge or control of any insured will have the effect of defeating coverage for other insureds who did not have knowledge of or control over the increase in hazard that leads to loss.
Water damage exclusions also vary from insurer to insurer. The ISO policies exclude coverage for sewer back-up losses. Some insurers' water damage exclusions do not exclude coverage for sewer back-up losses. If your house is situated where it may be subject to such losses, this is an issue that is worth spending your time to inquire whether coverage is available from an insurer at a premium that fits your budget.
Another point to consider when you are comparing policy forms from various insurers is to examine ensuing loss clauses that are part of exclusions. Ensuing loss clauses are exceptions to exclusions. Some ensuing loss clauses limit coverage to ensuing fire or explosion. Other ensuing loss clauses extend coverage to ensuing loss caused by any covered cause of loss. And, of course, there are examples between these two extremes.
Conditions
Policy conditions address issues such as the insured's duties in the event of loss or how claims are valued and settled. They also provide for mechanisms for resolution of disagreements between the insured and the insurer over the amount of the loss. Many of the conditions applicable to the property coverages have their origins in whatever form of standard fire policy is deemed to be part of your homeowners policy as a matter of law of the state where you reside. Affordable Insurance Company Claims
Conditions are divided into two sections. First there is the group of conditions that applies only to the property coverages. Second, there is a group of conditions that applies generally to all coverages, both property and liability. Each group will be addressed.
CONDITIONS APPLICABLE TO PROPERTY COVERAGES
The first condition is entitled Insurable Interest and Limits of Liability. This condition provides that regardless of whether more than one person has an insurable interest in covered property, the insurer will not be liable in any one loss to any insured for more than that insured's pecuniary interest in the property as of the time of loss. This condition also provides that the insurer will not be liable in any one loss more than the limit of liability or policy limit that applies to the item of property in question.
The next post we'll discuss more about what to do to claim your losses. It is very important for you to know, so check out our next blog post. At mean time, you can get many more useful information about insurance by getting Affordable Insurance Company Claims online.
