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 11 HO 24 71 to HO 34 03
Numerical list of Endorsements:
Endorsement HO 24 71 eliminates the homeowners section II exclusion of coverage for liability arising out of or in connection with a “business” engaged in by an “insured". It applies the policy's personal liability and medical payments coverages to the insured's business pursuits scheduled in the endorsement (essentially sales, clerical, and instructional occupations).
There are a few exclusions. Coverage does not apply to a business owned or financially controlled by the insured, or in which the insured is a partner. When coverage cannot be endorsed to the homeowners policy, as with home business coverage endorsement HO 07 01, the insured should cover business property and business liability under either a businessowners or commercial policy. For certain types of businesses, the home would also be covered under either a commercial or businessowners policy, and non-business contents would be covered under an HO 00 04 policy.
Also excluded is liability arising out of professional services other than teaching(for example, architectural, medical, beauty shop, or barber services). An optional coverage is available in the form of a checkbox in the schedule for bodily injury claims against teachers arising out of corporal punishment. Bodily injury to a fellow employee of the insured that occurs in the course of employment is also excluded.
When the insured is on the teaching staff of a school or college, an exclusion applies to liability claims arising out of the maintenance, use, loading, unloading, or entrustment by the insured of draft or saddle animals (or vehicles used with them); aircraft; hovercraft; motor vehicles or motorized land conveyances; or watercraft, if owned or operated, hired by or for the insured or the insured's employer, or used for instructional purposes.
This endorsement can be used with all forms except HO 00 14.
This endorsement provides liability coverage for incidental farming and has the option for farming operations conducted on the residence premises and/or farming operations conducted away from the residence premises and described in the schedule.
If an insured engages in incidental farming on the residence premises, the policy may be endorsed to provide coverage for liability and medical payments with respect to that activity. The general rules specify that the endorsement may be added only if the farming activity is incidental to use of the property for dwelling purposes, and the income derived is not the insured’s primary source of income. There is also coverage for the residence premises being used for the sheltering and grazing of animals. The endorsement may not be added if the premises is used for racing.
If opted for, there is coverage for incidental farming activities at specified locations away from the residence premises, including boarding and grazing the insured's animals, and using land for gardening if the income derived from those activities is not the insured’s primary source of income. There is also no coverage if the specified location is used for racing.
Coverage is much less extensive than that provided under farmers personal liability HO 24 73, seen below, although the HO 24 73 does not allow farming on the residence premises.
An insured whose principal business or principal occupation is not farming may be insured for liability arising out of farming by attaching endorsement HO 24 73 to the homeowners policy. The farm(s) must be away from the residence premises. All farm premises that are to be covered are scheduled; such premises may be owned, rented to others, or rented and operated by the insured. Any business other than farming conducted on an insured farming location must be noted on the schedule. The definition of "farming" for coverage purposes includes the operation of roadside stands if used principally for the sale of the insured's farm products. The 2017 form included “home-sharing host activities” as a “business”.
Coverage E (personal liability) pays for bodily injury or property damage caused by a covered occurrence. Standard defense coverage is also provided.
Coverage F (medical payments) applies to: (1) persons on the insured location with the insured’s permission; or (2) persons off of the insured location—if bodily injury arises out of a condition on the premises or ways immediately adjoining; is caused by the insured’s activities; is caused by residence or farm employees in the course of their employment; or is caused by animals owned by, or in the care of, the insured.
Standard homeowners section II exclusions apply to these coverages. Again, home-sharing activities are included in the definition of business and as such an exception is made to the exclusions under coverages E and F when the broadened home-sharing host activities endorsement is added to the policy. The endorsement defines a business as business activities other than farming. Generally, provisions that in the homeowners forms exclude coverage as to "residence employees" also apply to "insured farm employees" in the endorsement.
The 2022 revision of the endorsement provides motor vehicle liability coverage for a riding lawn mower if, at the time of an occurrence, it was being used to mow a lawn.
Several exclusions that are not found in the homeowners policies apply to personal liability coverage under the endorsement. These exclude coverage for: (1) bodily injury to farm employees who are not "insured farm employees" that arises out of employment for the insured; (2) property damage relating to products manufactured, sold, handled, or distributed by an insured, or work performed by or for an insured; or (3) property damage from any substance released or discharged from any aircraft (pesticides, for example).
The exclusion of property damage relating to the insured’s products does not affect coverage for bodily injury, if, for example, a customer of the insured’s roadside stand falls ill from eating the produce. However, coverage for property damage suffered by someone who purchases used farming equipment from the insured is excluded.
On the other hand, there is coverage not found in the unendorsed homeowners. For example, endorsement HO 24 73 gives coverage for the insured’s liability arising out of a warranty by stating that the exclusion of coverage for liability under any contract or agreement "does not apply to a warranty of goods or products."
Medical payments coverage does not apply to bodily injury to any farm employee or to other persons while they are performing farm work on the insured location. The 2017 form added that medical payments coverage does not apply to a “home-sharing occupant”. However, coverage does apply if the person is injured on the insured location while engaged in a neighborly exchange of assistance for which the insured is not obligated to pay money. If the insured pays money out of a sense of gratitude, rather than by agreement, the exclusion does not apply.
Formerly, first-party coverage for livestock collision could be purchased under the endorsement. Now, this coverage is available as a separate endorsement, HO 04 52, discussed previously.
The endorsement adds a condition for the insurer’s right to inspect and audit the farming property and operations during the policy term or within three years of termination.
Not eligible for coverage under this endorsement includes farms where the principal purpose of the farm is to supply commodities for manufacturing or processing by the insured for sale to others (such as creameries and dairies), and where the principal purpose is to operate freezing or dehydrating plants, or poultry factories. Also ineligible are farms where the principal purpose is to raise horses for racing and incorporated farms.
This endorsement can be used with all forms except HO 00 14.
This exclusion is used to remove the homeowners section II exclusions pertaining to the ownership, maintenance, or use of certain watercraft. The endorsement provides personal liability and medical payments coverage, otherwise excluded, with respect to scheduled and described watercraft powered by one or more engines or motors of more than 25 total horsepower; and sailing vessels, with or without auxiliary power, of 26 or more feet in length. The boat and outboard engine or motor must be described if the engine has more than 25 horsepower, and sailboats over 26 feet must be described as well. The base homeowners policy provides coverage for watercraft powered by engines of 25 horsepower or less or sailboats less than 26 feet in length.
Coverage under the endorsement does not apply to job-connected bodily injury to an insured's employee whose principal duties involve the maintenance, operation, or use of watercraft, nor is there coverage while the watercraft is used to carry paying passengers, used for any business purpose, or while it is rented to others. Also excluded is coverage for liability arising out of the operation of watercraft in a prearranged or organized race, speed contest, or similar competition, unless the competition is for sailing vessels (with or without auxiliary power) or is a predicted log cruise.
There are approximately 4.5 million people bitten by dogs each year in the United States, and roughly 800,000 need medical attention. While over half of the bites occur in the home, non-residents do get bitten. Historically, some carriers had lists of dangerous dog breeds that they would not write. States have long fought over breed legislation, whether or not it was reasonable to ban certain breeds for propensity towards dangerous behavior or whether responsibility fell to owners who did not train their pets properly. States have moved away from banning certain breeds and now define dangerous dogs based on past behavior. Some states require registration of dogs that have bitten others or been aggressive towards people or other pets, and maintain a dangerous dog registry of sorts. More on this topic, including the different laws by state, can be found at Dog Bite Statutes Part I – Liability Laws
This endorsement allows a carrier to place coverage on the dwelling but exclude liability coverage for a particular dog, such as one put on the state's dangerous dog list. The name and a description of the dog is required on the schedule. Liability and medical payments to others for bodily injury and damages that arise out of direct physical contact with the scheduled dog is excluded.
Endorsements HO 24 82 and HO 24 89 are counterparts to endorsements HO 24 10 and HO 24 49, discussed previously. While those endorsements provide personal injury coverage on an aggregate limit basis, these endorsements do so on an any one offense basis.
That means that the full limit of liability is available for any offense that occurs during the policy period, as opposed to endorsements HO 24 10 and HO 24 49, where an offense paid out would subtract from the aggregate limit.
Coverage is provided for personal injury which is defined to mean injury arising out of false arrest, malicious prosecution, wrongful eviction, slander or libel, or invasion of privacy. The insurer will pay for damages resulting from personal injury for which an insured is legally liable, and will provide a defense for a suit brought against an insured.
Exceptions include personal injury: caused knowingly by an insured; injury arising from an oral or written publication that was published before the beginning of the policy period; injury arising out of a criminal act committed by an insured; injury arising out of a business conducted from an insured location; injury arising out of civic or public activities performed for pay be an insured; and injury caused by pollution or fungi, wet or dry rot, or bacteria.
HO 24 82 can be used with all forms except HO 00 14 and HO 24 89 can be used with form HO 00 14.
This endorsement excludes personal liability and medical payments coverage for bodily injury to a farm employee if they were employed illegally with an insured’s knowledge. The wording implies coverage would be afforded if an insured had no knowledge that they were in violation of the law.
It can be used with all forms except HO 00 14.
The base homeowners policy excludes liability coverage for any aircraft used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo. This endorsement can be used to further restrict coverage and remove the coverage for model or hobby aircraft as well.
The premium is determined by multiplying the base premium by 0.996.
It can be used with all forms except HO 00 14.
This endorsement can only be attached to the policy if either endorsement HO 24 10 or HO 24 82, which provide personal injury coverage, is attached to the policy. HO 34 03 excludes liability for personal injury related to aircraft, including unmanned aircraft, and whether or not the aircraft is model or hobby.
The premium is determined by multiplying the base premium by 0.90.
It can be used with all forms except HO 00 14.