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Broad Form Insurance Coverage

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      This page contains examples of the standardized language developed by the Insurance Services Organization (ISO) for property insurance policies that have been used by most insurance companies in most states since the mid 1970s. The following is an example of what you can expect in a typical policy:

Definitions
Coverages
COVERAGE A - Dwelling
COVERAGE B - Other Structures
COVERAGE C - Personal Property
Property Not Covered.
COVERAGE D - Fair Rental Value
COVERAGE E - Additional Living Expense
OTHER COVERAGES

 

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ISO BROAD FORM AGREEMENT

      The insurance company agrees to provide the described insurance, in return for the premium and compliance with all applicable provisions of their policy.

DEFINITIONS

I n the policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household. "We," "us," and "our" refer to the Company providing the insurance.

COVERAGES

The insurance applies to the Described Location, Coverages for which a Limit of Liability is shown, and Perils Insured Against for which a Premium is stated.

BROAD FORM - COVERAGE A - Dwelling

The Company will usually cover:

  1. the dwelling on the Described Location shown in the Declarations, used principally for dwelling purposes, including structures attached to the dwelling;
  2. materials and supplies located on or next to the Described Location used to construct, alter, or repair the dwelling or other structures on the Described Location; and
  3. if not otherwise covered in the policy, building equipment and outdoor equipment used for the service of and located on the Described Location

This coverage does not apply to land, including land on which the dwelling is located.

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BROAD FORM - COVERAGE B - Relates to Other Structures

The Company will cover other structures on the Described Location, set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.

This coverage does not apply to land, including land on which the other structures are located.

But they do not cover other structures:

1. used in whole or in part for commercial, manufacturing, or farming purposes; or

2. rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage.

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COVERAGE C - Personal Property (Note: Tenant's personal property is not covered.)

The Company covers personal property, usual to the occupancy as a dwelling and owned or used by you or members of your family residing with you, while it is on the Described Location. At your request, we will cover personal property owned by a guest or servant while the property is on the Described Location.

Property Not Covered. The Company does not cover:

  1. accounts, bank notes, bills, bullion, coins, currency, deeds, evidences of debt, gold other than
  2. goldware, letters of credit, manuscripts, medals, money, notes other than bank notes, passports, personal records, platinum, securities, silver other than silverware, tickets, and stamps;

  3. animals, birds, or fish;
  4. aircraft and parts. Aircraft means any contrivance used or designed for flight, except model or hobby aircraft not used or designed to carry people or cargo;

  5. motor vehicles or all other motorized land conveyances. This includes:

a. their equipment and accessories; or

b. any device or instrument for the transmitting, recording, receiving, or reproduction of sound or pictures which is operated by power from the electrical system of motor vehicles or all other motorized land conveyances, including:

(1) accessories or antennas; or
(2) tapes, wires, records, discs, or other media for use with any such device or instrument;

while in or upon the vehicle or conveyance.

The Company will cover vehicles or conveyances not subject to motor vehicle registration, which are:

a. used to service the Described Location; or

b. designed for assisting the handicapped;

watercraft, other than rowboats and canoes;

5. watercraft, other than rowboats and canoes;

6. data, including data stored in:

a. books of account, drawings, or other paper records; or

b. electronic data processing tapes, wires records, discs, or other software media.

However, the Company does cover the cost of blank recording or storage media, and of prerecorded computer programs available on the retail market;

7. credit cards or fund transfer cards.

If you remove personal property from the Described Location to a newly acquired principal residence, the Coverage C limit of liability will apply at each residence for the 30 days immediately after you begin to move the property there. This time period will not extend beyond the termination of this policy. Our liability is limited to the proportion of the limit of liability that the value at each residence bears to the total value of all personal property covered by this policy.

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COVERAGE D - Fair Rental Value

If a loss to property described in Coverage A, B. or C by a Peril Insured Against under the policy makes that part of the Described Location rented to others or held for rental by you unfit for its normal use, we cover its:

Fair Rental Value, meaning the fair rental value of that part of the Described Location rented to others or held for rental by you less any expenses that do not continue while that part of the Described Location rented or held for rental is not fit to live in.

Payment will be for the shortest time required to repair or replace that part of the Described Location rented or held for rental.

If a civil authority prohibits you from use of the Described Location as a result of direct damage to a neighboring location by a Peril Insured Against in this policy, the Company will cover the Fair Rental Value loss for no more than two weeks.

The periods of time referenced above are not limited by the expiration of this policy.

The Company does not cover loss or expense due to cancellation of a lease or agreement.

COVERAGE E - Additional Living Expense (Note: the coverage does not extend to a tenant.)

If a loss to property described in Coverage A, B. or C by a Peril Insured Against under this policy makes the Described Location unfit for its normal use, we cover your:

Additional Living Expense, meaning any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living.

Payment will be for the shortest time required to repair or replace the Described Location or, if you permanently relocate, the shortest time required for your household to settle elsewhere.

If a civil authority prohibits you from use of the Described Location as a result of direct damage to a neighboring location by a Peril Insured Against in this policy, we cover the Additional Living Expense loss for no more than two weeks.

The periods of time referenced above are not limited by the expiration of this policy.

We do not cover loss or expense due to cancellation of a lease or agreement.

OTHER COVERAGES

1. Debris Removal. We will pay your reasonable expense for the removal of:

a. debris of covered property, if a Peril Insured Against causes the loss; or

b. ash, dust, or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building.

Debris removal expense is included in the limit of liability applying to the damaged property.

2. Improvements, Alterations, and Additions. If you are a tenant of - described Location, you may use up to 10% of the coverage C limit of liability for loss by a Peril Insured Against to improvements alterations and additions made or acquired at your expense, to that part of the Described Location used only by you.

Use of this coverage does not reduce the Coverage C limit of liability for the same loss.

3. World-Wide Coverage. You may use up to 10% of the Coverage C limit of liability for loss by a Peril Insured Against to property covered under Coverage C, except rowboats and canoes, while anywhere in the world.

Use of this coverage reduces the Coverage C limit of liability for the same loss.

4. Rental Value and Additional Living Expense. You may use up to 10% of the Coverage A limit of liability for loss of both fair rental value as described in Coverage D and additional living expense as described in Coverage E.

Use of this coverage does not reduce the Coverage A limit of liability for the same loss.

5. Reasonable Repairs. In the event that covered property is damaged by an applicable Peril Insured Against, we will pay the reasonable cost incurred by you for necessary measures taken solely to protect against further damage. If the measures taken involve repair to other damaged property, we will pay for those measures only if that property is covered under this policy and the damage to that property is caused by an applicable Peril Insured Against

This coverage:

a. does not increase the limit of liability that applies to the covered property;

b. does not relieve you of your duties, in case of a loss to covered property, as set forth in Condition 4.b.

6. Property Removed. The Company will insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed.

This coverage does not change the limit of liability that applies to the property being removed.

7. Trees, Shrubs, and Other Plants. The policy covers trees, shrubs, plants, or lawns, on the Described Location for loss caused by the following Perils Insured Against: Fire or lightning, Explosion, Riot or civil commotion, Aircraft, Vehicles not owned or operated by you or a resident of the Described Location or Vandalism or malicious mischief, including damage during a burglary or attempted burglary, but not theft of property.

The limit of liability for this coverage will not be more than 5% of the Coverage A limit of of liability, or more than $500 for any one tree, shrub, or plant. We do not cover property grown for commercial purposes.

This coverage is additional insurance.

8. Fire Department Service Charge. We will pay up to the amount shown in the Declarations for your liability assumed by contract or ordinance for fire department charges incurred when the fire department is called to save or protect covered property from a Peril Insured Against.

This coverage is additional insurance. No deductible applies to this coverage

9. Collapse. We insure for risk of direct physical loss to covered property involving collapse of a building or any part of a building caused only by one or more of the following:

a. Perils Insured Against in this policy;

b. hidden decay;

c. hidden insect or vermin damage;

d. weight of contents, equipment, animals, or people;

e. weight of rain which collects on a roof;

f. use of defective material or methods in construction, remodeling, or renovation, if the collapse occurs during the course of the construction, remodeling, or renovation.

Loss to an awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead pier, wharf, or dock is not included under items b, c, d, e, and f, unless the loss is a direct result of the collapse of a building.

Collapse does not include settling, cracking, shrinking, bulging, or expansion

This coverage does not increase the limit of liability applying to the damaged covered property

10. Glass or Safety Glazing Material. The Company will cover

a. the breakage of glass or safety glazing material which is part of a covered building, storm door, or storm window; and

b. damage to covered property by glass or safety glazing material which is part of a building, storm door, or storm window.

This coverage does not include loss on the Described Location, if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant

Loss for damage to glass will be settled on the basis of replacement with safety glazing materials when required by ordinance or law.

This coverage does not increase the limit of liability that applies to the damaged property.

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See: Perils Insured Against

The above topics are discussed in much more depth
  on our member s' Broad Form Insurance page.

Non-Members' Homepage

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