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.