1. Forms
2. HO
3. HO-00-14

What the form is

The Homeowners 14 – Contents Comprehensive Form (HO 00 14) is an Insurance Services Office (ISO) form developed for tenants and renters, introduced with a March 2022 edition date. It serves as an alternative to the traditional HO-4 Contents Broad Form. The HO 00 14 provides 'open perils' (also known as 'special perils') coverage for personal property (Coverage C), meaning it covers direct physical loss unless the cause of loss is specifically excluded. A key feature is that it settles losses to personal property on a replacement cost value (RCV) basis, rather than actual cash value (ACV), without needing a separate endorsement for this. This form was designed to meet the evolving needs of modern consumers, particularly younger demographics who are more likely to rent and participate in the sharing economy.

Classes of business it applies to

The HO 00 14 is primarily intended for:

• Tenants or occupants of non-owned dwellings or apartments.
• Owner-occupants of a dwelling who are ineligible for other Homeowners Forms (e.g., a co-owner in a multi-family dwelling where another owner carries the primary dwelling coverage).

It can be used for primary or seasonal/secondary residences that are used exclusively for residential purposes, although some incidental business occupancies are permitted. A significant aspect of this form is its relevance for individuals engaging in home-sharing activities.

Real-world example: A person renting an apartment who wants broader protection for their belongings than a typical named-perils policy and who occasionally rents out their spare room through a home-sharing platform.

Special considerations

• Open Perils with a Twist: While offering open perils coverage, the HO 00 14 includes an exclusion for "Misplacement or Mysterious Unexplainable Disappearance," which is noteworthy as the Special Personal Property endorsement (HO 05 24) typically does not contain this exclusion.
• Replacement Cost Settlement: Personal property losses are settled at replacement cost, a significant built-in benefit.
• Home-Sharing Coverage: The form incorporates limited property and liability coverage for "home-sharing host activities".
• Special Limits of Liability: Unlike other HO forms that list specific dollar limits for certain categories of personal property (e.g., money, jewelry, firearms), the HO 00 14 applies a 10% of the Coverage C limit as an aggregate total for all property within these specified categories lost in a single event. This can be more or less advantageous depending on the insured's Coverage C limit and the specific items involved.
• Coverage Limitations:
  • Property at other premises is excluded, unlike other HO forms that typically provide 10% of Coverage C for such property.
  • All types of watercraft are excluded.
  • It features fewer "Additional Coverages" (four) compared to the eleven found in more traditional Homeowners forms.
• Unique Coverages: Includes modest limits for bed bug remediation ($500 per policy period) and hard drive data recovery ($300).
• Business Definition: The definition of "business" is broadened to include a trade, profession, or occupation engaged in on a full-time, part-time, or occasional basis, plus home-sharing host activities.

Key information for agents and underwriters

• Target Insured: This form is well-suited for tenants seeking comprehensive coverage with replacement cost for their personal property, especially those participating in the gig economy through home-sharing.
• Risk Assessment: The open perils coverage necessitates thorough underwriting. The inclusion of home-sharing activities introduces unique property and liability exposures that must be evaluated. The specific exclusion for misplacement or mysterious unexplainable disappearance should be noted.
• Coverage Counseling: Agents must clearly explain the differences between the HO 00 14 and the HO-4, particularly regarding the perils covered (open vs. named), loss settlement (RCV vs. ACV), the structure of special limits, and specific exclusions like property at other residences and watercraft.
• Comparison to Endorsed HO-4: While the HO 00 14 has built-in features, an HO-4 can be endorsed (e.g., with HO 05 24 for special perils and HO 04 90 for replacement cost). A comprehensive comparison is essential to determine the best fit for the client.
• Eligibility: Eligibility criteria mirror those of the HO-4.
• Pricing Considerations: The broader coverage and RCV settlement will likely result in a higher premium compared to a basic HO-4, but it may offer better overall value for insureds with significant personal property and/or home-sharing exposures.