Combo Dwelling Policy
Investor Owner Overview Definition: Combo Dwelling policy provides coverage similar the HO-3 but the insured has the flexibility to exclude personal contents. This coverage applies to owners who rent out their unit.
Policy Highlights: Coverage A: Dwelling Coverage: While the Association maintains building coverage for the Association termed “single entity”. The homeowners policy needs to include this coverage and incorporate the additions and alterations, improvements and betterments made by the unit owner or previous unit owner. In the event of a covered loss the Association’s policy and the homeowner’s policy merge to make the homeowner whole. (Such as sheetrock damage below the Association’s deductible).
Coverage B: Other Structures: Covers other structures on the residence premises, set apart from the dwelling by clear space (e.g. tool shed, detached garage). This also includes structures connected to the dwelling by only a fence, utility fence or similar connection. Coverage
Coverage C: Personal Property: Coverage is defined as and should include such items as the couch, jewelry, clothes, dishes, etc. (All those things you would take with you when you move). *
Coverage D: Loss of Use: If a covered loss makes the unit uninhabitable, the policy covers the living expense that results.
Coverage E: Liability: Protects the insured should a claim be made or suit be brought for damages because of bodily injury or property damages caused by an occurrence for personal liability within the home. The policy will provide defense and pay damages up to the limit of liability for which the insured is legally liable.
Coverage F: Medical Payments to Others: Will pay the necessary medical expenses incurred or medically ascertained within 3 years from the date of the accident causing the bodily injury within the home.
Loss Assessments is defined as a charge by the Association to each homeowner collection for their share when such an assessment is made necessary by a loss to the Association.
Additional Living Expense: The necessary increase in living expense incurred by you so that your household can maintain its normal standard of living. For example, this would include the increased cost to live in a motel, eat all meals at restaurants and increased costs to do laundry.
Loss of Rents/Fair Rental Value, if the loss makes the unit rented to others or held for rent by you not fit to live in, you will be reimbursed the fair market rental value less any expenses that do not continue while the premises are not fit to live in.
* In many policies Coverage C will combine personal property and additions/alterations (improvements/betterments) as one limit. Therefore, this coverage limit must represent the full value of your improvements as well as your personal property. However, on a Combo Dwelling Policy, this coverage usually represents appliances or built-in upgrades