On an HO-6 is the replacement cost coverage automatic or do I need to add an endorsement for both my real property and personal property?
Total Comments: 4
Posted: Tue Aug 24, 2010 09:54 am Post Subject:
Well, I guess it could be either of replacement cost or cash value. You'd need to ask your agent while signing up. Make sure you read the offer documents carefully!
Posted: Tue Aug 24, 2010 12:47 pm Post Subject:
An HO6 (condo owner's) policy provides Actual Cash Value (ACV) coverage for both the building and your personal property on a "named peril" basis (if the loss is not the result of a named peril, it will not be covered). Actual cash value is defined as Replacement Cost minus Depreciation.
All HO policy forms provide ACV for personal property. Only HO2, HO3, and HO5 provide for Replacement Cost coverage for the dwelling (subject to an 80% of value minimum coverage requirement).
Any variation of or addition to the coverage under an HO6 policy would have to be added by endorsement or rider by the insurance company.
Posted: Tue Aug 24, 2010 12:58 pm Post Subject:
Well, I guess it could be either of replacement cost or cash value
Steven is wrong here -- it is not one or the other according to the insurance company's whim. The ISO standard form homeowner's policies (HO2, HO3, HO4, HO5, HO6, and HO8) are all written with specific coverages and settlement provisions.
An HO6 (condo owner's) policy provides Actual Cash Value (ACV) coverage for both the building and your personal property on a "named peril" basis (if the loss is not the result of a named peril, it will not be covered). Actual cash value is defined as Replacement Cost minus Depreciation.
All HO policy forms provide ACV for personal property. Only HO2, HO3, and HO5 provide for Replacement Cost coverage for the dwelling (subject to an 80% of value minimum coverage requirement).
Any variation of or addition to the coverage under an HO6 policy would have to be added by endorsement or rider by the insurance company.
Coverage for the structure under an HO6 would not normally be altered to Replacement Cost since the policyowner does not truly have an ownership/insurable interest in the structure, but only a "right of occupancy". That's the reason the Condo Owner's Association carries a policy with replacement cost for the structure. So the policyowner's insurable interest is limited to the "structural" components (stuff other than personal property) in the interior of the dwelling -- inside walls, cabinets, appliances, fixtures, and floor and window coverings.
It's also the reason that an HO4 (renter's policy) has NO COVERAGE for the dwelling structure, the insured has NO insurable interest in the rental property. The renter has no insurable interest in the inside walls, cabinets, fixtures, etc (including any landlord's furnishings).
Posted: Thu Aug 26, 2010 10:23 am Post Subject:
HO-6 condo insurance has been described at the following page. You may take a look at it-
Posted: Tue Aug 24, 2010 09:54 am Post Subject:
Well, I guess it could be either of replacement cost or cash value. You'd need to ask your agent while signing up. Make sure you read the offer documents carefully!
Posted: Tue Aug 24, 2010 12:47 pm Post Subject:
An HO6 (condo owner's) policy provides Actual Cash Value (ACV) coverage for both the building and your personal property on a "named peril" basis (if the loss is not the result of a named peril, it will not be covered). Actual cash value is defined as Replacement Cost minus Depreciation.
All HO policy forms provide ACV for personal property. Only HO2, HO3, and HO5 provide for Replacement Cost coverage for the dwelling (subject to an 80% of value minimum coverage requirement).
Any variation of or addition to the coverage under an HO6 policy would have to be added by endorsement or rider by the insurance company.
Posted: Tue Aug 24, 2010 12:58 pm Post Subject:
Well, I guess it could be either of replacement cost or cash value
Steven is wrong here -- it is not one or the other according to the insurance company's whim. The ISO standard form homeowner's policies (HO2, HO3, HO4, HO5, HO6, and HO8) are all written with specific coverages and settlement provisions.
An HO6 (condo owner's) policy provides Actual Cash Value (ACV) coverage for both the building and your personal property on a "named peril" basis (if the loss is not the result of a named peril, it will not be covered). Actual cash value is defined as Replacement Cost minus Depreciation.
All HO policy forms provide ACV for personal property. Only HO2, HO3, and HO5 provide for Replacement Cost coverage for the dwelling (subject to an 80% of value minimum coverage requirement).
Any variation of or addition to the coverage under an HO6 policy would have to be added by endorsement or rider by the insurance company.
Coverage for the structure under an HO6 would not normally be altered to Replacement Cost since the policyowner does not truly have an ownership/insurable interest in the structure, but only a "right of occupancy". That's the reason the Condo Owner's Association carries a policy with replacement cost for the structure. So the policyowner's insurable interest is limited to the "structural" components (stuff other than personal property) in the interior of the dwelling -- inside walls, cabinets, appliances, fixtures, and floor and window coverings.
It's also the reason that an HO4 (renter's policy) has NO COVERAGE for the dwelling structure, the insured has NO insurable interest in the rental property. The renter has no insurable interest in the inside walls, cabinets, fixtures, etc (including any landlord's furnishings).
Posted: Thu Aug 26, 2010 10:23 am Post Subject:
HO-6 condo insurance has been described at the following page. You may take a look at it-
http://www.ampminsure.org/home/ho6-condo.html
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