Before discussing covered and noncovered perils, an explanation is needed regarding the geographic reach of coverage. As noted, the personal property coverage of most homeowners policies is worldwide. Most homeowners insurance policies also afford coverage to locations other than simply the residence premises in the policy’s declarations.
This can be seen by reviewing the policy’s definition of residence premises and insured location. In the standard ISO HO 3 (and the HO 2 named perils policy as well), residence premises means:
· the single family dwelling that the named insured resides in; or,
· a 2-, 3-, or 4-family dwelling in which the named insured resides in one or more of the dwelling units; or,
· that part of any other building where the named insured resides; and,
· which is shown as the residence premises in the policy’s declarations.
· This definition is clear that residence premises is just one place—the place specified in the policy’s declarations. The definition of insured location, however, makes sure that coverage extends to other locations as well. Insured location includes:
· the residence premises;
· other premises, other structures, and grounds used by the named insured as a residence and which is either:
■ shown in the homeowners insurance policy’s declarations or
■ which the named insured acquires during the policy period for use as a residence (in practical terms if, for example, you have a second or vacation home, that second or vacation home would be covered if it were listed in your policy’s declarations);
· any premises used by the named insured in connection with either of the two preceeding categories of insured location (e.g., a storage facility);
· any part of the premises that are not owned by the named insured at which the named insured is temporarily residing;
· vacant land, other than farmland, that a named insured owns or is renting;
· land that is owned by or rented to the named insured on which the named insured is building a one, two, three, or four unit residence for him- or herself or for another insured;
· individual or family cemetery plots or burial vaults of an insured; and,
· any part of premises occasionally rented to an insured for other than business use (e.g., if you were to rent a vacation cabin or cottage for a few weeks, it would qualify as an insured location).
There will be different covered locations applied by different homeowners insurance agency.
