PF&M at a Glance—

AAIS Homeowners Policy

The American Association of Insurance Services provides a very comprehensive Homeowners Program that includes protection against a host of losses that threaten structural property and personal property. AAIS homeowners policies also handle claims involving injury to other persons and/or damage to the property of others (liability losses). Naturally such injury or damage must be related to property ownership or personal activities.

Besides the persons named on a given policy as an insured, coverage extends to relatives of the insureds, other members of the insured household and, with regard to liability coverage, certain other persons (for limited circumstances) such as butlers, nannies, maids, cooks, gardeners and persons acting on behalf of insureds.

Typical Property coverage includes:

Dwelling protects the residence premises, attached structures (garages) and building materials or supplies that are located on or next to the residence. However, building materials and supplies qualify for coverage only when its intended use is related to the covered residence. Land is not covered.

Other Structures protects other structures (detached garages, sheds, barns, gazebos, and other permanent structures) that are located on the insured premises and that are not attached to the dwelling.

Personal Property protects the home owner’s personal property (appliances, clothing, home electronics, furniture, sports equipment, etc.) worldwide. In certain instances, it also covers personal property belonging to others. Valuable property that is prone to loss (jewelry, firearms, collectibles, cash, etc.) are all subject to extremely modest sub-limits.

Loss Of Use Coverage handles some additional living expenses (or rental income loss) when a covered accident makes the residence inaccessible or unusable as a residence.

Additional Coverage includes, debris removal, repairs, trees/shrubs/plants, fire department fees, property removed, credit/fund transfer card, forgery, and counterfeit money, loss assessment. collapse and landlord’s furnishings.

Property coverage has a number of limitations. Usually coverage is not available for losses involving ordinances or laws; earth movement; water damage; power failure; war (all incidents of military or similar activity); nuclear activity; neglect (protecting/preserving property); intended acts; weather conditions; and acts/decisions, faulty, inadequate or defective planning, zoning, or other matters involving property development. Nor is coverage provided for circumstances that should be handled by other types of policies, such as those covering automobiles, watercraft, aircraft or commercial activities.

Typical Liability coverage includes:

Personal Liability insures home owner and family’s legal duty to pay for injury suffered by third parties or damage to property that belongs to other persons. Coverage includes the cost of providing a legal defense (provided in addition to policy’s liability limits).

Medical Payments To Others handles medical expenses related to physical injuries. It includes cost of medical; surgical; x-ray; dental; ambulance; hospital; professional nursing; prosthetic devices and funeral services.

Additional Coverage includes covering claims (adjustment) costs, first aid expenses, damage to property of others and loss assessment.

Liability coverage also has limitations. Protection is not available for losses that an insured expects or intends. It also does not cover business activity, property rental for commercial use, professional liability, use of motor vehicles, most watercraft and aircraft, military incidents, transmission of communicable disease, sexual molestation, corporal punishment, abuse, and trafficking in controlled substances.

A thorough discussion of the program may be found in the PF&M Analysis from The Rough Notes Company. Producer Online subscribers, please refer to PF&M Section 451.6, HO 0003-AAIS Special Form Homeowners Analysis for more details.