Glossary

A homebuilder wrap-up is a modified version of a commercial wrap-up (also known as "consolidated insurance program" or CIP) that allows a developer to purchase blanket liability coverage for contractors performing construction work on behalf of the developer. Homebuilder wrap-ups are a form of consolidated insurance program that provides hard-to-place coverages for residential construction projects. Because their use is driven by coverage needs rather than cost savings, they often are general liability only wrap-ups, and, in many cases, are the only way to obtain adequate liability insurance from residential trade subcontractors, especially in high claims areas. Even for subcontractors who can obtain liability insurance, the policies typically have low limits and have broad exclusions for residential types of exposures, such as roofing, mold, and exterior insulation finish systems, among others.

The Homeowners Modified Form 8 (HO 8) is part of the Insurance Services Office, Inc. (ISO), homeowners portfolio. The HO 8 form provides basic named perils coverage for direct damage to property, personal liability coverage, and medical payments to others as respects owner-occupied dwellings. The HO 8 is designed for situations in which the replacement cost of a home may be substantially higher than its market value or where the restoration costs using antiquated and inefficient materials and methods exceed current and common materials and methods. The insurance limits are directly related to the replacement cost; thus, this creates a moral hazard if the replacement cost greatly exceeds the market value. The HO 8 form amends the loss settlement basis as well as the insurance-to-value stipulation; this makes insurance coverage more accessible for owners of older urban homes. In particular, this form insures the dwelling and other structures based on the amount required to repair or replace the property using common construction materials and methods.

The homeowners policy is a package insurance policy providing property and liability coverages tailored to the needs of most homeowners, condominium owners, and apartment tenants. Various versions are available depending on the type of dwelling insured and the scope of protection to be covered. It is the most commonly used insurance policy protecting homes in the United States.

The Homeowners Policy Basic Form 1 (HO 1) provides basic named perils coverage for direct damage to property, personal liability coverage, and medical payments to others coverage. Originally drafted as part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio, this basic form has been discontinued in nearly all states because buyers demanded the broader coverages available in the other ISO homeowners forms.

The Homeowners Policy Broad Form 2 (HO 2) is part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio. The HO 2 insures the described dwelling, private structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use. The policy also provides personal liability coverage and medical payments to others coverage. It is a broad named perils form, but the list of covered perils is more extensive than that of HO 1.

The Homeowners Policy Comprehensive Form 5 (HO 5) is part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio. The HO 5 form insures the described owner-occupied dwelling, other structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use. This policy also provides personal liability coverage and medical payments coverage. This is the broadest homeowners form, as coverage is on an all risks basis for both the dwelling and other structures, as well as personal property.

The Homeowners Policy Contents Broad Form 4 (HO 4) is part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio. The HO 4 form insures a tenant for direct damage to unscheduled personal property on a broad named perils basis. This policy also provides personal liability coverage and medical payments coverage.

The Homeowners Policy Special Form 3 (HO 3) is part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio. The HO 3 insures the described owner-occupied dwelling, private structures in connection with the dwelling, unscheduled personal property on and away from the premises, and loss of use. Personal liability coverage and medical payments coverage are also provided by this policy. Coverage of the dwelling, related structures, and scheduled personal property is on an all risks basis, while coverage of unscheduled personal property is on a broad named perils basis. Losses to the dwelling and other structures are paid on a replacement cost basis, with no deduction for depreciation if certain conditions apply. Losses to personal property are paid on an actual cash value (ACV) basis, unless amended by endorsement.

The Homeowners Policy Unit Owners Form 6 (HO 6) is part of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio. The HO 6 form covers the real property interest and the personal property of insureds who own a unit in a condominium or share an ownership interest in a cooperative building. It also provides personal liability coverage and medical payments coverage. This form is similar to the HO 3 in many ways but provides less real property coverage since it is designed to coordinate coverage with a master policy covering the structure and common areas that the condominium or cooperative association purchases.

Home care refers to skilled and unskilled long-term care (LTC) services provided in the patient's place of residence for the purpose of promoting, maintaining, or restoring health or minimizing the effects of illness or disability. Home care services may include such things as medical, dental, and nursing care; speech and physical therapy; homemaking services of a home health aide; and provision of transportation. Nursing may be provided by a registered nurse, licensed practical nurse, or home health aide. Some hospitals have home care services that include regular visits by a nurse and a physician to patients in the home.