1. Forms
2. HO
3. HO-01-42

What the Form Is

The HO 01 42 Special Provisions - Texas endorsement is a mandatory form used to modify standard homeowners insurance policies (such as HO 00 02, HO 00 03, HO 00 04, HO 00 05, HO 00 06) for policyholders in Texas. Its primary function is to align the policy with specific Texas insurance laws, regulations, and common coverage concerns within the state. This often includes amendments to coverages for water damage, mold (referred to as "fungi"), and ordinance or law.

Classes of Business It Applies To

This endorsement applies to personal lines homeowners insurance policies issued in the state of Texas. This includes various types of owner-occupied dwellings, condominium units, and tenants (renters) policies, depending on the base form it is attached to. For example:

• Owner-occupied homes (typically with HO 00 02, HO 00 03, HO 00 05)
• Condominium unit owners (typically with HO 00 06)
• Renters (typically with HO 00 04)

Special Considerations

The HO 01 42 is crucial for ensuring a homeowners policy complies with Texas requirements. Key considerations include:

• Water Damage: The endorsement often amends how water damage is covered, particularly concerning issues like repeated seepage or leakage, and water backing up through sewers or drains.
• Mold/Fungi: It typically includes specific definitions for "fungi" (any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products) and may provide limited coverage for fungi, wet or dry rot caused by a covered peril. It's important to review the specific edition date of the endorsement as mold coverage provisions have evolved.
• Ordinance or Law: The endorsement may amend coverage for increased costs due to the enforcement of any ordinance or law, which can be particularly relevant in areas with specific building codes or those affected by Texas Windstorm Insurance Association (TWIA) requirements.
• Definitions: It may introduce or modify definitions specific to Texas, such as "business day."
• Mandatory Attachment: This endorsement must be attached to all homeowners policies issued to Texas policyholders.

Key Information for Agents and Underwriters

Agents and underwriters must be thoroughly familiar with the HO 01 42 as it significantly impacts policy coverage in Texas:

• Compliance: Ensure this endorsement is attached to all Texas homeowners policies.
• Risk Assessment: Understand how the endorsement modifies coverage for perils like water damage and mold, as this affects risk exposure, particularly in a state prone to humidity and severe weather.
• Coverage Explanations: Clearly explain to policyholders how this endorsement affects their coverage, especially limitations or specific conditions related to water damage and mold.
• Edition Dates: Be mindful of the specific edition date of the HO 01 42 being used, as provisions can change over time due to legislative updates or new legal interpretations. For example, the 06 02 edition was noted in relation to fungi exclusions and water damage from seepage. Later editions like the 02 17 and 01 24 are also in use.
• Related Endorsements: Be aware of how this endorsement interacts with other endorsements that may be on the policy.
• Pricing: While the endorsement itself is a standard attachment, the underlying coverages it modifies will impact the overall premium.