Homeowners Program Changes (Updates)

As of October 2016, one of our carriers (Mutual Benefit) migrated from the 1991 homeowners policy form (Insurance Service Office) to the 2011 version.

There are some coverage changes that may require your attention. Many of these coverage changes are already reflected in the current policy forms in use by other agency carriers. Therefore, this information may still pertain to you even if your current coverage already uses the new form.

Students Who Live Away From Home

The definition of “insured” has been expanded. Insureds under the policy, in part, include:

• Residents of your household under the age of 21.
• Students enrolled in school full-time (as defined by the school) who were residents of your household before moving out to attend school, provided that the students are under the age of 21 and are in your care or care of a resident who is your relative.

What this means for you:

• If you have a student 21 or older or a part-time student who lives away from home, they are most likely not covered by your homeowners policy. However, they may be added as “additional insured” for an additional premium charge.

Property Located in Storage Facilities

The 1991 form and the new form both provide an extension of up to 10% of the “Coverage C – Personal Property” limit for personal property usually located at another residence.

The older form did not apply this 10% limit to personal property located in a self-storage facility; the full limit was available. The 2011 form does apply the 10% limit to a self-storage facility. The 2011 form is the first version to apply the 10% limit to personal property in storage.

What this means for you:

• If you have large amounts of personal property in storage because you are building a new home or waiting to find that perfect home, you will need to arrange special coverage for your personal property in the storage facility.

Special Computer Coverage

Mutual Benefit homeowners policies that included the Promark Advantage endorsement had special computer coverage with a $5,000 limit and a special deductible of $100. This coverage has been deleted from the 2011 form.

What this means for you:

• Computers are still covered as personal property, but your full policy deductible applies.

State regulations generally require all carriers that adopt new coverage forms to notify policyholders of reductions in coverage, broadening of coverage and other changes. We recommend you review your homeowners policy renewal every year and make note of these changes.

Contact us to review any questions you may have and to discuss endorsements that may be available to assure proper coverage.