What does Homeowners Modified Form 8 mean? Read on to discover the definition & meaning of the term Homeowners Modified Form 8 - to help you better understand the language used in insurance policies.
Homeowners Modified Form 8
Part of the Insurance Services Office, Inc. (ISO), homeowners portfolio, the HO 8 form provides basic named perils coverage for direct damage to property, personal liability coverage, and medical payments to others as respects owner-occupied dwellings. The HO 8 is designed for situations in which the replacement cost of a home may be substantially higher than its market value or where the restoration costs using antiquated and inefficient materials and methods exceed current and common materials and methods. The insurance limits are directly related to the replacement cost; thus, this creates a moral hazard if the replacement cost greatly exceeds the market value. The HO 8 form amends the loss settlement basis as well as the insurance-to-value stipulation; this makes insurance coverage more accessible for owners of older, urban homes. In particular, this form insures the dwelling and other structures based on the amount required to repair or replace the property using common construction materials and methods.
We hope the you have a better understanding of the meaning of Homeowners Modified Form 8.