Sometimes people own a structure that is off the “residence premises” as defined by their HO policy. This can include a boat dock at the premises but technically on Army Corps of Engineers property, a detached garage building a block away, or a duck blind 200 miles away.
What appears to complicate things in the ISO HO program is that there is no “Coverage B” in the ISO HO-6 condo form. So can “other structures” be covered under an HO-6, or does the insured have to cover them under a separate type of policy?
ISO has two endorsements for covering "other structures" off the residence premises, the HO 04 91 and the HO 04 92, and ISO manual Rule 514.B. outlines which endorsement can be used with what policy form:
B. Structures Off The Residence Premises
1. Forms HO 00 02, HO 00 03 And HO 00 05
a. Coverage Description
(1) The policy automatically provides Coverage B – Other Structures on a blanket basis to structures located on the residence premises.
(2) This blanket coverage may be endorsed to expand coverage to include structures located away from the residence premises if used in connection with the residence premises.
b. Premium
Refer to state company rates for rate to be charged.
c. Endorsement
Use Other Structures Away From The Residence Premises HO 04 91.
2. All Forms
a. Premium
(1) When insurance is written on a specific structure located away from the residence premises, the rate per $1,000 of insurance shall apply separately to each location.
(2) Refer to state company rates for rate to be charged.
b. Endorsement
Use Specific Structures Away From Residence Premises Endorsement HO 04 92.
The HO-6 defines “residence premises” to be the unit where you reside shown as the “residence premises” in the Declarations. Based on Rule 514.B.2., the HO 04 92 endorsement could be used to cover any specific structure away from the “residence premises” (unit) under an HO-6. However, the HO-6 itself describes Coverage A as including structures “at the location of” the residence premises:
1. We cover:
a. The alterations, appliances, fixtures and improvements which are part of the building contained within the “residence premises”;
b. Items of real property which pertain exclusively to the “residence premises”;
c. Property which is your insurance responsibility under a corporation or association of property owners agreement; or
d. Structures owned solely by you, other than the “residence premises”, at the location of the "residence premises".
So, our consensus opinion is that a structure owned by the unit owner outside the unit itself but still on the condo association premises would be covered under Coverage A. Just discuss with the underwriter and make sure the limit is adequate, especially if this is not an ISO condo form and/or the carrier does not strictly follow ISO manual rules. Otherwise, the HO 04 92 endorsement should work, especially if the structure is remote from the site.
Last Updated: November 21, 2023