1. Forms
2. HO
3. HO-04-30

What the form is

The HO 04 30, titled "Theft Coverage Increase," is an endorsement to a homeowners insurance policy. Its primary purpose is to allow policyholders to increase the limits of coverage for theft of personal property beyond the standard amounts provided in their base policy. This endorsement is particularly noted for its use with the HO 00 08 (Modified Coverage Form) policy. It can also be used to add or increase coverage for theft of personal property that occurs away from the insured's "residence premises."

Classes of business it applies to

This endorsement applies to personal lines homeowners insurance. It is designed for individuals who:

• Have an HO 00 08 policy and find the standard theft limitation of $1,000 (or other base amount) insufficient for their needs.
• Own personal property whose value exceeds the base theft coverage limits and wish to have more comprehensive protection against theft losses.
• Desire coverage or higher limits for personal property stolen while away from their home (off-premises coverage).

Real-world example: An insured with an HO 00 08 policy owns a bicycle collection valued at $5,000. The standard HO 00 08 might only provide $1,000 for theft. By adding the HO 04 30, the insured can increase the on-premises theft limit to better cover their collection. If they also frequently travel with an expensive laptop, they might use this endorsement to ensure adequate theft coverage for it away from home.

Special considerations

• Use with HO 00 08: This endorsement is frequently cited for use specifically with the HO 00 08 policy form.
• Off-Premises Coverage Contingency: The ability to add or increase off-premises theft coverage may be contingent upon first purchasing additional on-premises theft coverage. The insured often needs to specify separate limits for on-premises and off-premises theft.
• Special Limits Still Apply: It's crucial to remember that even with this endorsement increasing the overall theft limit, the standard policy's Special Limits of Liability for certain categories of property (e.g., jewelry, watches, furs, firearms, silverware) still apply. If higher limits are needed for these specific items, a Scheduled Personal Property endorsement (like HO 04 61) would typically be required in addition.
• State Availability: The availability and specific wording of this endorsement can vary by state and insurance company. Different editions of the form may be approved in different states.

Key information for agents and underwriters

• Needs Assessment: Agents should discuss the insured's personal property inventory and lifestyle to determine if their current theft limits are adequate. This includes assessing the value of items susceptible to theft both on and off the premises.
• Underlying Form Compatibility: Confirm that the endorsement is compatible with the insured's base homeowners policy, especially if it's not an HO 00 08. While primarily associated with HO 00 08, company-specific rules may vary.
• Explain Coverage Nuances: Clearly explain the distinction between on-premises and off-premises coverage, any prerequisites for off-premises coverage, and how the Special Limits of Liability interact with this endorsement.
• Risk Assessment: Underwriters should evaluate the overall risk profile. Factors such as the property's location (e.g., crime rates), security measures (alarms, deadbolts), and prior loss history may influence the willingness to offer significantly increased theft limits and the premium charged.
• Pricing: The premium for this endorsement will depend on the selected increased limit(s) for on-premises and, if applicable, off-premises theft, as well as underwriting considerations.
• Documentation: Ensure the declarations page clearly reflects the increased theft limits for on-premises and off-premises coverage as elected by the insured.