InfoCentral: Homeowners TDI Agreement and Definitions

Policy Language	Explanation
Agreement We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.	Agreement and Definitions Each coverage form includes an insuring agreement and definitions, which apply to Section I and Section II.
Definitions In this policy, "you" and "your" refer to the "named insured" shown on the declarations page and the spouse if a resident of the same household. "We", "us" and "our" refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows:	Definitions The spouse must be a resident of the same household as the person whose name appears in the Declarations in order to be considered a "you" and have the same protection. It is advisable to name both the husband and wife in the Declarations since by doing so you avoid some potential coverage problems should a separation or divorce occur during the policy period. The Residential Community Property Clause provides some protection but only applies to Section I Property coverage. Some definitions given here are common to Section I and Section II, while others may apply only to one or the other.
1. "Bodily injury" means bodily harm, sickness or disease. This includes required care, loss of services and death that results. 2. "Business" includes trade, profession or occupation. 3. "Business Day" when used in this policy means a day other than a Saturday, Sunday or holiday recognized by the State of Texas.	1. Bodily injury appears only in Section II - Liability. Personal injury is considered a separate coverage, and may be purchased by attaching endorsement HO-201 (Personal Injury Coverage).
4. "Insured" means you and residents of your household who are: a. your relatives; or b. other persons under the age of 21 and in the care of any person named above.	4. Insured An insured could include any relative who is residing with the named insured, but does not include a guest who is visiting but doesn't "reside" there on a regular basis. The term "household" is open to interpretation as it is not defined. The named insured's mother living in a guest house on the premises may not be considered a resident relative of the named insured's household. If considered an "insured", the property coverages may need to be adjusted to account for the values at risk owned by that person who is automatically an insured.
Under Section II Liability, insured also means: c. any person or organization legally responsible for animals or watercraft to which this policy applies. You or a person included in 3.a. or 3.b. above must own the animal or watercraft. A person or organization using or having custody of these animals or watercraft without consent of the owner is not an insured.	Where the watercraft exposure is covered (see exception to watercraft exclusion in the liability section) the HO could cover both the named insured (the boat owner) and a permissive user liable for its use at the time of an accident. A neighbor who cares for an insured's pet dog or horse could automatically be considered an insured - and perhaps share in the limits of the policy and the defense cost coverage - if they are caring for the pet at the insured's request; however, a veterinarian or someone with whom the pet is boarded in the course of his or her business would not be an insured.
d. With respect to any vehicle to which this policy applies: (1) any employee of an insured while engaged in the employment of the insured; or (2) any other person using the vehicle on an insured location with your consent.	This could include a residence employee gardener using the insured's mower to mow the lawn at the residence premises, but generally wouldn't include the exposure of his driving your car, or his own car, in course of employment. (Review the motor vehicle exclusion in the liability section and the definition below.)
5. "Insured location" means:	The following is a summary of "insured locations":
a. the residence premises.	The residence premises described in the declarations.
b. the part of other premises, other structures and grounds you use as a residence and: (1) which is shown on the declarations page; or (2) which you acquire during the policy period for your use as a residence.	Newly acquired secondary residences are covered automatically for liability, if not rented to others. Those owned at inception must be listed in the Declarations. (See technical report Teens and Parties).
c. any premises you use in connection with a premises in 5.a. or 5.b. above. d. any part of a premises: (1) not owned by an insured; and (2) where an insured is temporarily residing.	c. Other premises used in connection with covered residence premises could include (i) parking or garage facilities for the insured's vehicles, located away from the residence premises, (ii) a mini-warehouse space rented for private storage, (iii) joint ownership of common areas in a subdivision, condominium or townhouse association, (iv) a public hall or other facility rented or used by the insured for a family wedding or other private function. (See technical report Wedding Reception).
e. vacant land, other than farm land, owned by or rented to an insured.	e. Owned or rented vacant land other than farm land. Such land is covered, no matter what size, and no matter what future plans the insured may have for its development, resale or use, as long as it is: (i) Not rented or held for rental, and (ii) Owned individually or jointly with other individuals, not by a business partnership or corporation. The word "vacant" implies that the premises is unoccupied or not used for any purpose and is void of any man-made structures.
f. land owned by or rented to an insured on which a one or two family dwelling is being built as a residence for an insured	f. If the insured begins construction operations for a dwelling intended for occupancy by the insured, any accidents arising out of the land or the construction activities are covered. (See technical report Building a Home).
g. individual or family cemetery plots or burial vaults of an insured.	g. Cemetery plots or burial vaults, whether owned individually by the insured or jointly with nonresident family members.
h. any part of a premises occasionally rented to an insured for other than business use.	h. non-owned temporary residences, even when rented. This could include a vacation cottage rented for the summer, a weekend retreat, or a motel room.
6. "Occurrence" means an accident, including exposure to conditions, which results in bodily injury or property damage during the policy period. 7. "Property damage" means injury to, destruction of, or loss of use of property. 8. "Residence employee" means an employee of an insured who performs duties related to the ownership, maintenance or use of the residence premises, including maintenance or use of a motor vehicle. This includes employees who perform similar duties elsewhere for an insured. This does not include employees while performing duties related to the business of an insured.	See technical report Coverage for Employees.
9. "Residence premises" means the residence premises shown on the declarations page. This includes the one or two family dwelling, including other structures, and grounds where an insured resides or intends to reside within 60 days after the effective date of this policy.	This definition has significance in both Section I (regarding where property is covered) and Section II (regarding the "insured location" definition). See technical report Residency Issues. This definition is different in the condominium forms B-CON and C-CON. In those forms, the residence premises is limited to the condominium unit shown on the declarations page.

Policy Language

Explanation

Agreement

We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy.

Agreement and Definitions

Each coverage form includes an insuring agreement and definitions, which apply to Section I and Section II.

Definitions

In this policy, "you" and "your" refer to the "named insured" shown on the declarations page and the spouse if a resident of the same household. "We", "us" and "our" refer to the Company providing this insurance. In addition, certain words and phrases are defined as follows:

Definitions

The spouse must be a resident of the same household as the person whose name appears in the Declarations in order to be considered a "you" and have the same protection. It is advisable to name both the husband and wife in the Declarations since by doing so you avoid some potential coverage problems should a separation or divorce occur during the policy period. The Residential Community Property Clause provides some protection but only applies to Section I Property coverage.

Some definitions given here are common to Section I and Section II, while others may apply only to one or the other.

1. "Bodily injury" means bodily harm, sickness or disease. This includes required care, loss of services and death that results.

2. "Business" includes trade, profession or occupation.

3. "Business Day" when used in this policy means a day other than a Saturday, Sunday or holiday recognized by the State of Texas.

1. Bodily injury appears only in Section II - Liability. Personal injury is considered a separate coverage, and may be purchased by attaching endorsement HO-201 (Personal Injury Coverage).

4. "Insured" means you and residents of your household who are:

a. your relatives; or

b. other persons under the age of 21 and in the care of any person named above.

4. Insured An insured could include any relative who is residing with the named insured, but does not include a guest who is visiting but doesn't "reside" there on a regular basis.

The term "household" is open to interpretation as it is not defined. The named insured's mother living in a guest house on the premises may not be considered a resident relative of the named insured's household.

If considered an "insured", the property coverages may need to be adjusted to account for the values at risk owned by that person who is automatically an insured.

Under Section II Liability, insured also means:

c. any person or organization legally responsible for animals or watercraft to which this policy applies. You or a person included in 3.a. or 3.b. above must own the animal or watercraft. A person or organization using or having custody of these animals or watercraft without consent of the owner is not an insured.

Where the watercraft exposure is covered (see exception to watercraft exclusion in the liability section) the HO could cover both the named insured (the boat owner) and a permissive user liable for its use at the time of an accident.

A neighbor who cares for an insured's pet dog or horse could automatically be considered an insured - and perhaps share in the limits of the policy and the defense cost coverage - if they are caring for the pet at the insured's request; however, a veterinarian or someone with whom the pet is boarded in the course of his or her business would not be an insured.

d. With respect to any vehicle to which this policy applies:

(1) any employee of an insured while engaged in the employment of the insured; or

(2) any other person using the vehicle on an insured location with your consent.

This could include a residence employee gardener using the insured's mower to mow the lawn at the residence premises, but generally wouldn't include the exposure of his driving your car, or his own car, in course of employment. (Review the motor vehicle exclusion in the liability section and the definition below.)

5. "Insured location" means:

The following is a summary of "insured locations":

a. the residence premises.

The residence premises described in the declarations.

b. the part of other premises, other structures and grounds you use as a residence and:

(1) which is shown on the declarations page; or

(2) which you acquire during the policy period for your use as a residence.

Newly acquired secondary residences are covered automatically for liability, if not rented to others. Those owned at inception must be listed in the Declarations.

(See technical report Teens and Parties).

c. any premises you use in connection with a premises in 5.a. or 5.b. above.

d. any part of a premises:

(1) not owned by an insured; and

(2) where an insured is temporarily residing.

c. Other premises used in connection with covered residence premises could include

(i) parking or garage facilities for the insured's vehicles, located away from the residence premises,

(ii) a mini-warehouse space rented for private storage,

(iii) joint ownership of common areas in a subdivision, condominium or townhouse association,

(iv) a public hall or other facility rented or used by the insured for a family wedding or other private function.

(See technical report Wedding Reception).

e. vacant land, other than farm land, owned by or rented to an insured.

e. Owned or rented vacant land other than farm land. Such land is covered, no matter what size, and no matter what future plans the insured may have for its development, resale or use, as long as it is:

(i) Not rented or held for rental, and

(ii) Owned individually or jointly with other individuals, not by a business partnership or corporation. The word "vacant" implies that the premises is unoccupied or not used for any purpose and is void of any man-made structures.

f. land owned by or rented to an insured on which a one or two family dwelling is being built as a residence for an insured

f. If the insured begins construction operations for a dwelling intended for occupancy by the insured, any accidents arising out of the land or the construction activities are covered.

(See technical report Building a Home).

g. individual or family cemetery plots or burial vaults of an insured.

g. Cemetery plots or burial vaults, whether owned individually by the insured or jointly with nonresident family members.

h. any part of a premises occasionally rented to an insured for other than business use.

h. non-owned temporary residences, even when rented. This could include a vacation cottage rented for the summer, a weekend retreat, or a motel room.

6. "Occurrence" means an accident, including exposure to conditions, which results in bodily injury or property damage during the policy period.

7. "Property damage" means injury to, destruction of, or loss of use of property.

8. "Residence employee" means an employee of an insured who performs duties related to the ownership, maintenance or use of the residence premises, including maintenance or use of a motor vehicle. This includes employees who perform similar duties elsewhere for an insured. This does not include employees while performing duties related to the business of an insured.

See technical report Coverage for Employees.

9. "Residence premises" means the residence premises shown on the declarations page. This includes the one or two family dwelling, including other structures, and grounds where an insured resides or intends to reside within 60 days after the effective date of this policy.

This definition has significance in both Section I (regarding where property is covered) and Section II (regarding the "insured location" definition).

See technical report Residency Issues.

This definition is different in the condominium forms B-CON and C-CON. In those forms, the residence premises is limited to the condominium unit shown on the declarations page.