Homeowners – New Product Comparison

New water damage and theft options, plus new discounts, make this package very sellable.

The Homeowners product (formerly Specialty Homeowners) provides a package of coverage for a full-time or seasonal home that because of its value, age or claim history needs an alternative to HO-3 coverage. It includes named peril coverage, with Broad Form peril upgrades, plus a replacement cost settlement upgrade. Water damage is a new option (up to 100% Coverage A). This replaces the water coverage in the Enhanced Coverage endorsement.

Streamlined process gets your quote done fast
  • Quotes import data already in the system, eliminating duplicate work, and also pull from C.L.U.E. reports and MSB data, improving accuracy.
  • There are fewer underwriting questions. You will see only questions relevant to the risk you are looking to cover.
  • You can process policy changes (endorsements) on your own without underwriting intervention.

• New Item

Current Specialty
Homeowners Product
New Homeowners Product
 Occupancy
types
• Owner
• Seasonal
• Owner
• Seasonal
 Property
description
• Single or two-family
• No age restriction
• Average condition and better
• Single or two-family
• No age restriction unless a row or town home
• Average condition and better
 Value range• Varies by state• $50,000 min.
• $75,000 min. for replacement cost
• $500,000 max.
There will be some state variation but this is the standard.
 Insured for• Market value
• Replacement cost is optional
• Market value
• Replacement cost is optional
 Protection
classes
• 1 to 10• 1 to 10
 Coverage• Named peril for dwelling, other structures and
personal property
• Enhanced coverage adds perils.
• Named peril for dwelling, other structures
and personal property (Named perils same
as those on 2014 ISO DP-1 form.)
• Enhanced coverage adds perils.
 Deductible• $500 default• $500 default
• Optional $1,000, $2,500 or $5,000
A peril deductible may apply.
 Loss
settlement
• Actual cash value for dwelling, other structures
and personal property / full repair cost or
replacement cost are upgrades
• Actual cash value for dwelling and other structures
/ full repair cost or replacement cost are upgrades
• Actual cash value for personal property
/ replacement cost is an upgrade
 Included
coverage
• Liability
• Personal property – 40% Coverage A
• Other structures – 10% Coverage A
• Reasonable repairs
• Debris removal
• Loss of use – 10% Coverage A
• Fire department surcharge – $500
• Liability – $25,000 to $500,000
• Personal property – 40% Coverage A
• Other structures – 10% Coverage A
• Reasonable repairs
• Debris removal
• Loss of use – 10% Coverage A
• Fire department surcharge – $500
 Optional
coverage
• Enhanced coverage (adds collapse,
freezing, water from plumbing or HVAC,
weight of snow/ice, power surge,
falling objects, glass breakage)
• Hobby farming
• Identity recovery
• Limited theft
• Water backup
• Enhanced coverage (adds collapse, weight of
snow/ice, power surge, falling objects, glass
breakage)
• Hobby farming
• Home equipment breakdown protection
• Identity recovery
• Ordinance or law – 10% Coverage A
• Scheduled personal property
• Service line – $10,000 limit ($500 deductible)
• Theft – limits up to 100% Coverage C
• Water backup/sump overflow – $5,000 limit
• Water damage – 10% to 100% Coverage
A with a $5,000 or $10,000 sublimit
for mold and remediation
 Discounts• Some states have discounts for alarms.• Approved association membership – 5%
• Auto policy with agent – 5%
• Insured aged 50 and older – varies
• Multiple policies with American Modern – 5%
• No claim in past 3 years – varies
• Paperless documents – 1%
• Paying in full – 5%
• Policy in effect 5 years or more – varies
• Central station fire/smoke alarm – 5%*
• Central station burglar alarm – 5%*
• Local smoke and/or burglar alarm – 2%*
• Deadbolt, smoke alarm, fire extinguisher – 2%*
* up to 10% total
 Payment
options
• Full pay
• Monthly, EFT only
• 4-Pay, billed
• Full pay
• Monthly, EFT only
• 2-Pay, billed or EFT
• 4-Pay, billed or EFT
• 6-Pay, billed or EFT

The new Homeowners product is offered just through American Modern Property and Casualty Insurance Company, and will begin rolling out in 2016.