are there any issues with using the dwelling for business ... there any is… · ho 06...

Are There Any Issues With Using The Dwelling For Business? What

About the Detached Garage?

9/26/2017

Marshall Katz MS, LUTC, CIC, LIA, AAI 1

Are There Any Issues With Using The

Dwelling For Business...What About the Detached Garage

Please turn off cell phones and stow away. Thanks

Disclaimer The information in this outline is to be used as a guide only. Neither the author, M.A.I.A., affiliates, or any other organizations associated with this are liable for misprints, typos, interpretations held different from any person or organization. Riders, endorsements, coverage, and any policies not

being able to cover exposures are the agent and company responsibilities.

10:15 - 10:45

� Analysis of ISO's HO 00 03 form

� What is a business defined

� Coverage A Dwelling

� Coverage B Detached structure

� Coverage C Contents

� Coverage D Loss of Use

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10:45 - 11:15

� Coverage E Personal Liability

� Coverage F Medical Payments to Others

� Endorsements available

� Underwriting issues

� Monday morning quarterbacking

"Business" means: a. A trade, profession or occupation engaged in on a full-time, part-time

or occasional basis; or b. Any other activity engaged in for money or other compensation, except

the following: (1) One or more activities, not described in (2) through (4) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period; (2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity; (3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or (4) The rendering of home day care services to a relative of an "insured�.

ISO�s 2000/2011 Business Definition

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ISO�s 1991 Business Definition

2. "Business" includes trade, profession or occupation.

� Not real clear� Leaves room for much interpretation� So ISO made it more precise in the 2000 &

2011 versions

"Business" means:

a. A trade, profession or

occupation engaged in on a

full-time, part-time or

occasional basis; or

2 parts to the definition

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"Business" means: b. Any other activity engaged in for money

or other compensation, except the following: (1) One or more activities, not described

in (2) through (4) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period;

"Business" means: b. Any other activity engaged in for money or other compensation, except the following:

(2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity;

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"Business" means: b. Any other activity engaged in for

money or other compensation, except the following:

(3) Providing home day care

services for which no compensation is received, other than the mutual exchange of such services; or

"Business" means: b. Any other activity engaged in for

money or other compensation, except the following:

(4) The rendering of home day

care services to a relative of an "insured�.

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ISO 2000 / 2011

4. Business means (2 parts)a. Including trade, profession or occupation

engaged in full-time, part-time occasionally, or

b. Any other activity engaged in for money or othercompensation, except

1. Insured makes no more than $2,000 in 12 months before policy started

2. Unpaid volunteer activities3. Unpaid day care, other than mutual exchange4. Home day care of a relative of an insured�

even for pay

So lets look at ISO�s HO 00 03

05 11 policy shall we�

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Coverage A Dwelling

� Dwelling on the residence premises

� Structures attached

� Materials and supplies on or next used to construct alter or repair

� Not land

� That�s it!

SECTION I � PROPERTY COVERAGES

A. Coverage A � Dwelling

1. We cover:

a. The dwelling on the "residence premises" shown in the

Declarations, including structures attached to the dwelling;

and

b. Materials and supplies located on or next to the "residence

premises" used to construct, alter or repair the dwelling or

other structures on the "residence premises".

2. We do not cover land, including land on which the dwelling is

located.

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Did not see any issues with property coverage for the dwelling in the form.

What might be a problem?

Is the carrier OK with a business in the home?

Are there any endorsement issues?

ISO HOMEOWNER MANDATORY AND OPTIONAL HOME-SHARING ENDORSEMENTS

http://vrc.iiaba.net/anew_homepage.asp

MANDATORY AMENDATORY FORMSHO 06 52�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 02 PolicyHO 06 53�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 03 PolicyHO 06 54�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 04 PolicyHO 06 55�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 05 PolicyHO 06 56�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 06 PolicyHO 06 58�Home-Sharing Host Activities Amendatory EndorsementFor use with the HO 00 08 Policy

For excluding coverage for home sharing like Airbnb, HomeAway, etc.

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ISO HOMEOWNER MANDATORY AND OPTIONAL HOME-SHARING ENDORSEMENTS

http://vrc.iiaba.net/anew_homepage.asp

OPTIONAL FORMSHO 06 62�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 02 PolicyHO 06 63�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 03 PolicyHO 06 64�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 04 PolicyHO 06 65�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 05 PolicyHO 06 66�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 06 PolicyHO 06 68�Broadened Home-Sharing Host Activities Coverage EndorsementFor use with the HO 00 08 Policy

For purchasing coverage for home sharing like Airbnb, HomeAway, etc.

What about business in the

detached structure?

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B. Coverage B � Other Structures

1. We cover other structures on the "residence premis-es" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.

2. We do not cover:a. Land, including land on which the other structures are

located;b. Other structures rented or held for rental to any

person not a tenant of the dwelling, unless used solely as a private garage;

c. Other structures from which any "business" is conducted; or

d. Other structures used to store "business" property. However, we do cover a structure that contains "business" property solely owned by an "insured" or a tenant of the dwelling provided that "business" property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure.


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Tenant in the Other Structure

Tenant Occupied

Car Car Bay Bay

Endorsement HO 04 40 to buy back:

Building coverage and

Premises liability coverage


Tenant Occupied

Car Car Bay Bay


Not needed if garage is attached

Need to increase coverage A and

Tell the carrier it is now a 2 family

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Car Car Bay Bay


Not needed if just a car bay rented to store an auto







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Business in a Detached Structure

Craft Store Car Bay

Coverage A $100,000

Coverage C $50,000

Permitted Incidental Business Occupancy Endorsement

HO 04 42

What does endorsement do?

1. Buys back property coverage for building and business contents

2. Buys back premises liability coverage

Business in a Detached Structure

Craft Store Car Bay

Coverage A $100,000

Coverage C $50,000


HO 04 42

What does endorsement do?

1. Still needed if garage is attached for business contents and

2. Buys back premises liability coverage

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Other policies

to consider

h. Other policies to consider:

1) Businessowners (BOP)

2) BOP endorsements

3) Commercial Packages

4) Excess & Surplus Lines

5) Fair Plans

6) Inland Marine Floaters

No products liability coverage.







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2. We do not cover:

1. Used in whole or in part for "business"; or

2. Rented or held for rental to any person not a

tenant of the dwelling, unless used solely as

a private garage.

B. Coverage B � Other Structures 1991 ISO Form

So no coverage for the building if we simply store business stuff in the detached structure in whole or in part.

3. Special Limits Of LiabilityThe special limit for each category shownbelow is the total limit for each loss for allproperty in that category. These special limitsdo not increase the Coverage C limit of liability. h. $2,500 on property, on the "residence premises", used primarily for "business� purposes.i. $1,500 on property, away from the "residence premises", used primarily for "business" purposes...

For property away from the premises, the limits are different for the;1991 Version $2502000 Version $500

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C o v e r a g e D � L o s s O f U s e

2. Fair Rental Value

If a loss covered under Section I makes that part of

the "residence premises" rented to others or held for

rental by you not fit to live in, we cover the fair rental

value of such premises less any expenses that do not

continue while it is not fit to live in.

Payment will be for the shortest time required to

repair or replace such premises.

Is there enough coverage on the policy especially for multi-family homes to pay for the Additional Living Expenses of the Owner and Loss of Rents to keep paying the mortgage?

S e c t i o n I I E xc l u s i o n s

� Motor Vehicle

� Watercraft

� Aircraft

� Hovercraft

� Expected / intended

� Business

� Professional

� War

� Communicable Disease

� Sexual Molestation

� Controlled Substance

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Other Liability EndorsementsWe talked about the HO 04 40 Tenant in Other

Structure and HO 04 42 Permitted Incidental

Business Occupancy earlier

Don�t forget to offer:

� HO 04 97 Home Day Care� Works like the Permitted Incidental Occupancy

endorsement HO 04 42

� HO 24 72 Incidental Farming� Boarding horses on premises� Your horses off premises� Selling vegetables, flowers, etc.

Other Liability Endorsements

HO 24 71 Business Pursuits

� Sales, clerical, messengers, teachers

� For named business (Photographer)

� For named insured (Marshall)

� For business insured does not own or

control (W2 employee)

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BUSINESS PURSUITS

SCHEDULE*

Name And Business Of Insured Corporal Punishment Check here if Liability for corporal punishment is covered and Section II � Exclusion 4.b. below does not

apply.

*Entries may be left blank if shown elsewhere in this policy for this coverage.

SECTION II � LIABILITY COVERAGES

Coverage E � Personal Liability and Coverage F � Medical Payments to Others apply to the "business" pursuits of the "insured" named in the Schedule above.

SECTION II � EXCLUSIONS

Coverages E and F do not apply:

1. To "bodily injury" or "property damage" arising out of the "business" pursuits of the "insured" in connection with a "business" owned or financially controlled by the "insured" or by a partnership of which the "insured" is a partner or member;

2. To "bodily injury" or "property damage" arising out of the rendering of or failure to render professional services of any nature other than teaching, including but not limited to any:

a. Architectural, engineering or industrial design services;

b. Medical, surgical, dental or other services or treatment conducive to the health of persons or animals; and

c. Beauty or barber services or treatment;

3. To "bodily injury" to a fellow employee of the "insured" injured in the course of employment;

4. When the "insured" is a member of the faculty or teaching staff of any school or college:

a. To "bodily injury" or "property damage" arising out of the ownership, maintenance, occupancy, operation, use, loading, unloading, of, or entrustment by the "insured" to any person of, or the failure to supervise or negligent supervision of any person involving:

(1) Draft or saddle animals or vehicles for use therewith;

(2) Aircraft;

(3) Hovercraft;

(4) "Motor vehicles"; or

(5) Watercraft;

owned or operated, or hired by or for the "insured" or employer or used by the "insured" for the purpose of instruction in the use thereof; or

b. To "bodily injury" to any pupil arising out of corporal punishment administered by or at the direction of the "insured". This Exclusion 4.b. does not apply if the box in the Schedule is checked indicating that liability for corporal punishment is covered.

All other provisions of this policy apply.

Employee EndorsementWorldwide Coverage

3. No professional coverage

4. Not an �insured location� (HO 24 70)

a. Owned by an insured (FL house)

b. Rented to an insured (business use)

c. Rented to others by an insured (Cape)

That is not an �insured location�

5. War6. Communicable Disease7. Sexual Molestation, Corporal Punishment Or

Physical Or Mental Abuse8. Controlled Substance

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Exclusions applying to coverage E� Loss assessment and contractual

� Owned property

� CCC (weddings � www.rvnuccio.com)

� Workers compensation

� Nuclear energy liability

� BI to you or an insured

NH Mandatory endorsement HO 24 91 form

Exclusions applying to coverage F

� BI to residence employee off the residence

premises and not under direction of the

employer

� Workers compensation if required

� Nuclear

� Residents except residence employee

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F. Coverage E � Personal LiabilityCoverage E does not apply to:4. "Bodily injury" to any person eligible to receive any benefits voluntarily provided or required to be provided by an "insured" under any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

G. Coverage F � Medical Payments To OthersCoverage F does not apply to "bodily injury":2. To any person eligible to receive benefits voluntarily provided or required to be provided under any:a. Workers' compensation law;b. Non-occupational disability law; orc. Occupational disease law;

http://www.mass.gov/ago/doing-business-in-massachusetts/workplace-rights/domestic-workers/

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(3) Written Agreement. An employer who employs a

domestic worker for 16 hours or more per week shall

provide to the domestic worker, and retain for a period

of three years from the date when services were

performed, signed and dated by both the worker and

employer, a written agreement in a language or

languages easily understood by both the worker and

employer(s), regarding the following information:

(g) the right to collect workers' compensation benefits

if injured on the job;

Monday morning quarterbacking after an

uninsured event and when do we bring our

insurance policy into play?

Dial the number

Tell them what agency your calling from and

Let your E & O carrier guide you through the

process and

Our limit per occurrence is only what

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Questions

Comments

Suggestions?

Thank you for sharing your hour with MAIA and myself!

Enjoy the rest of the day.

are there any issues with using the dwelling for business ... there any is… · ho 06...

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