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2. HO
3. HO-24-82

What the form is

The HO 24 82 Personal Injury Coverage endorsement is an addition to a standard homeowners insurance policy. Its primary purpose is to extend liability coverage beyond 'bodily injury' and 'property damage' to include 'personal injury.' Standard homeowners policies typically do not cover claims arising from offenses like libel, slander, false arrest, malicious prosecution, wrongful eviction or entry, or invasion of privacy. This endorsement fills that crucial coverage gap by specifically defining and covering these types of non-physical injuries. It also includes providing a legal defense against such claims.

The endorsement adds definitions for 'Personal injury' and 'Fungi'. 'Personal injury' is defined as injury arising out of one or more of the following offenses committed during the policy period: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy; oral or written publication of material that slanders or libels a person or organization, disparages a person's or organization's goods, products or services, or violates a person's right of privacy.

Classes of business it applies to

This endorsement is designed for personal lines homeowners, condominium unit-owners, and renters insurance policies. It is intended for individuals and families seeking broader personal liability protection. It is not for commercial business exposures. Real-world examples where this coverage would apply include:

• An insured posts a defamatory comment on social media about a neighbor, leading to a lawsuit.
• An insured is sued for malicious prosecution after unsuccessfully suing someone else.
• A landlord insured is sued for wrongful eviction by a tenant (coverage for rental activities can be complex and may depend on other policy terms and endorsements).
• An insured is accused of falsely detaining a guest on their property whom they suspected of theft. For instance, if a homeowner wrongfully accuses a guest of stealing and prevents them from leaving, this endorsement could provide coverage if the guest sues for false imprisonment.

Special considerations

There are several important considerations for the HO 24 82 endorsement:

• Additional Premium: This coverage is optional and requires an additional premium.
• Exclusions: Coverage is subject to various exclusions. Common exclusions include:
  • Personal injury caused by or at the direction of an insured with the intent to cause harm.
  • Personal injury arising out of civic or public activities for which the insured is paid. For example, if an insured is paid to work security at an event and wrongfully detains someone, this endorsement would likely not provide coverage.
  • Personal injury arising out of the business pursuits of an insured (some limited exceptions might apply depending on the base policy).
  • Liability assumed by the insured under any contract or agreement, unless it directly relates to the ownership, maintenance, or use of the premises.
  • Claims made by one insured against another insured on the same policy.
  • With the March 2022 edition, personal injury arising out of home-sharing host activities is typically excluded by this endorsement.
• Policy Limits: Coverage is subject to the liability limit stated on the policy declarations page for Coverage E - Personal Liability.
• Edition Dates: The specific terms and exclusions can vary by edition date. For example, the treatment of home-sharing activities was addressed in the 03 22 edition.
• Form Usage: While broadly available, some insurers may have specific guidelines. For instance, it is generally used with most homeowners forms, but some sources indicate it is not used with forms like the HO 00 14 (Contents Comprehensive Form), for which other personal injury endorsements like HO 24 89 or HO 24 49 (Personal Injury Coverage - Aggregate Limit Of Liability) might be more appropriate. Result also notes it's used with all forms except HO 00 05, HO 00 04 plus HO 05 24, or HO 00 06 plus HO 17 31, so specific policy combinations should be verified.

Key information for agents and underwriters

• Risk Assessment: Underwriters should assess the insured's potential exposure to personal injury claims. This might include their social media presence, any landlord activities, involvement in community groups, or past history of disputes.
• Explaining the Need: Agents should clearly explain the coverage gap that exists in unendorsed homeowners policies for personal injury type claims, especially in an era of prevalent social media use. The example of Tyra being sued by school board members for an email she wrote highlights a real-world scenario.
• Pricing: The premium for this endorsement will vary among insurers and may be influenced by the underwriter's assessment of the risk.
• Underwriting Guidelines: Insurers will have their own specific underwriting rules. They might be more cautious with individuals who have a very public profile or a history of making controversial public statements.
• Interaction with Umbrella Policies: Agents should consider how this endorsement coordinates with any personal umbrella liability policies the insured may have, as umbrella policies often provide broader personal injury coverage and may have different definitions or exclusions.
• Review Exclusions: It's crucial for both agents and insureds to understand the exclusions within the endorsement to avoid misunderstandings at the time of a claim.