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 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:
The base homeowners forms provide coverage for damage to property of others caused by an insured of up to $5,000 per occurrence. Through this endorsement, that limit can be increased to $10,000, $25,000, or $50,000, for an additional premium charge. This endorsement follows the same exclusions found in the policy such as damage caused intentionally by an insured, damage to property owned by an insured, etc.
This endorsement can be used with all forms except HO 00 14.
Broadened Home-Sharing Host Activities Coverage Forms
HO 06 62 09 22 applies to HO 00 02
HO 06 63 09 22 applies to HO 00 03,
HO 06 64 09 22 applies to HO 00 04,
HO 06 65 09 22 applies to HO 00 05,
HO 06 66 09 22 applies to HO 00 06,
HO 06 68 09 22 applies to HO 00 08.
The homeowners policies exclude coverage for home-sharing host activities. That coverage can be provided through these six endorsements. The endorsements are nearly identical, but vary based on the form they attach to.
An in-depth analysis of this coverage can be found here.
The homeowners policies exclude coverage for theft to a dwelling under construction, or of materials and supplies used in construction, until the dwelling is finished and occupied. This endorsement is new with the 2022 program and can be used to provide coverage for Coverage A and B property; Coverage C coverage can be provided by HO 06 07, discussed earlier.
Coverage is available in increments of $5,000, up to $25,000. The limit is listed in the Schedule, along with a coverage inception and termination date. Coverage ends on the earliest of the termination date shown or when the dwelling is finished and occupied.
This endorsement can be used with all forms except HO 00 08 and HO 00 14.
This endorsement provides coverage for loss resulting from damage to a utility line. The utility line must be owned by the insured or must be the insured's responsibility under a municipal or commercial utility service contract.
"Utility line" is defined as the portion of a pipe, wire, conduit, cable on the residence premises, outside of a building, and below the surface of the ground that connects a building to a source for municipal or commercial utility service. This can include a water line, sewer line, gas line, steam line, electric transmission line, or communication transmission line, but does not include any portion of a liquid fuel tank, septic tank, or water well or well system.
Perils insured against include wear and tear, rust or corrosion, leakage, constriction or blockage, implosion or collapse, mechanical failure, electrical failure, and trees, shrubs or plants.
The base limit is $10,000 per loss, which can be increased to $25,000 or $50,000. The endorsement also provides limited coverage for Loss Of Use and Ordinance Or Law.
This endorsement can be used with all forms except HO 00 04, HO 00 08, and HO 00 14.
The homeowners forms that provide Coverage B - Other Structures automatically cover structures located on the residence premises on a blanket basis. This endorsement, new with the 2022 program, allows for that coverage to be extended to include structures located away from the residence premises if used in connection with the residence premises.
Structures excluded from this endorsement include structures: being used or capable of being used as a dwelling; from which any business is conducted; used to store business property; or rented or held for rental to any person not a tenant of the dwelling.
This endorsement provides coverage on a replacement cost basis. HO 04 91, discussed earlier, provides the same coverage on an actual cash value basis.
This endorsement can be used with forms HO 00 02, HO 00 03, and HO 00 05.
This endorsement is identical to HO 06 91, seen above, except HO 06 92 provides a schedule to specifically name covered structures as opposed to the blanket coverage provided by HO 06 91. It is also new with the 2022 program.
Like HO 06 91, HO 06 92 provides coverage on a replacement cost basis. HO 04 92, discussed earlier, provides the same coverage on an actual cash value basis.
This endorsement can be used with all forms except HO 00 08 and HO 00 14.
HO 04 95 Limited Water Back-Up and Sump Discharge or Overflow Coverage endorsement, discussed earlier, provides coverage for water that originates from within the dwelling where the named insured resides and backs up through sewers and drains and which overflows or is discharged from a sump, sump pump, or related equipment.
ISO has received feedback suggesting a broader water back-up endorsement and responded by introducing HO 06 95. This endorsement removes the limitation that water back-up must originate from within the dwelling where the insured resides in order to trigger coverage, thus providing broader coverage.
The basic limit is $5,000, with options of $10,000, $15,000, $20,000, or $25,000.
The endorsement can be used with all forms except HO 00 08.