GENERAL INFORMATION TYPES OF HOMEOWNER’S INSURANCE POLICY FORMS POLICY COVERAGES

Coverage A: Coverage B: Coverage C: Coverage D: Coverage E: Coverage F: Regardless of who is at fault, this coverage pays for reasonable medical expenses for persons (other than you or residing family members) accidentally injured on your property. TYPES OF VALUATION PREMIUM DEVELOPMENT CONSIDERATIONS (VARIES BY INSURER) Your premium may be based on, but not limited to, the following factors: type of construction, loss prevention devices, public protection class, deductible level, amount of insurance, and policy form. The key to insurance comparison shopping is identifying your desired deductible levels, coverage limits and provisions before getting premium quotes. Once your ideal policy parameters are selected (with your agent’s assistance, if necessary), the quotes you receive should be on an “apples to apples” comparative basis. After obtaining multiple premium quotes, your personal preference dictates the emphasis placed on the following considerations: premium cost, service and financial stability. Generally, financial ratings from reputable sources (i.e. A.M. Best and Moody’s) indicate an insurance company’s financial “heath” and ability to pay claims.

Note: if your agent only represents one insurance company, you may need to contact an independent agent to obtain competing quotes. CONDO OWNERS FORM (HO-6) UNIT-OWNER’S POLICY FORM While coverage descriptions may vary, most insurers use one or more of the following policy forms. Comprehensive Form (HO-5), not listed, provides the broadest coverage but is uncommon. BASIC FORM (HO-1) BROAD FORM (HO-2) SPECIAL FORM (HO-3) CONTENTS BROAD FORM (HO-4) HOME OWNER’S POLICY FORMS RENTER’S POLICY FORM Homeowner’s insurance is not required by law in Hawaii. If your home is mortgaged, however, your lender may require insurance on your home for the duration of your loan. Homeowner’s insurance provides protection for your dwelling, personal property, and on-site buildings if damaged or destroyed by a covered peril. Perils are events (i.e. fire and explosion) which cause damage to property. In addition to property coverage for your home and outbuildings, each policy usually contains four additional coverages: personal property, additional living expenses, personal liability, and medical payments. This guide provides a general overview of homeowner’s insurance in Hawaii and is not intended to replace carefully reading your policy documents. Keep in mind insurers may have varying definitions of policy language and charge different rates for the same coverage. We encourage you to review your policy with your insurance agent to ensure your current provisions best suit your coverage needs. Open peril coverage excluding the following: flood, surface water, sewer backups, tidal waves, earthquakes, landslides, war, nuclear radiaton, and hurricane.

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Personal property only covered for the same perils as the Broad Form (HO-2). This policy provides renters personal property protection against the same perils as the Broad Form (HO-2) and includes personal liability protection. Unlike the other policy forms, the renter’s HO-4 form only incorporates coverages C through F. This condominum and townhouse unit owners form offers coverage for personal property and interior finishes. The condo association typically purchases a separate policy that covers the building (including common walls and grounds) and associated liability. >>>>>>>>>>>> As coverage increases so does your premium price. >>>>>>>>>>>> Named peril coverage: fire, lightning, windstorm excluding hurricane, hail, explosion, vandalism or malicious mischief, damage by vehicles, aircraft and riots. Since few homeowners select this limited policy, many insurers no longer offer Form HO-1. In addition to the Basic Form (HO-1) coverages, this form also insures a home and personal property for collapse or damage from falling trees and other objects, and (under certain conditions) from steam and water damage. Covers personal liability exposures. Protects against a claim/lawsuit resulting from (non-auto & non-business) bodily injury or property damage to others caused by your negligence. Every homeowner’s policy, except for HO-4, includes the following six coverages. If your policy’s standard coverage is inadequate, endorsement forms may offer specialized coverage to meet your needs. Covers main house damage. The coverage limit is typically set at or near the replacement cost of the home. For Condo Unit-Owners (HO-6), limit usually the declared value by insured.

Section I Covers damage to other structures on the lot, such as detached garages/carports and storage sheds. Covers additional living expenses (incurred by the insured) to continue the “normal” standard of living when the house cannot be occupied due to a covered loss. Covers damage to or loss of personal property. BUYING HOME INSURANCE Replacement cost is the amount necessary to replace, rebuild, or repair your home/property without deducting for depreciation. Depreciation is the decrease in an asset’s value due to age, obsolescence, and/or “wear and tear.” Many insurers require policyholders to insure their homes for at least 80% of its replacement value. Actual cash value (ACV) is the cost to replace, rebuild, or repair your home/property after deducting for depreciation. Most homeowner policies cover personal property on an ACV basis