HO 17 32 changes Coverage A under an HO-6 condominium unit-owners policy from named-peril treatment to special, or open-peril, coverage. It applies to eligible real property insured under Coverage A, not automatically to personal belongings under Coverage C and not to property insured by the condominium association's master policy.
What property can HO 17 32 affect?
HO-6 Coverage A can insure building items and alterations, appliances, fixtures, and improvements that are part of the residence premises when the policy makes the unit owner responsible for them. The exact boundary varies with the coverage form, declarations, condominium documents, and master policy.
Without HO 17 32, that property is commonly covered only for named causes of loss. The endorsement replaces that approach with coverage for direct physical loss unless the loss falls within an exclusion or limitation. A carrier-hosted copy of HO 17 32 05 11 reproduces the special-coverage structure and its detailed exclusions.[1]
What does open-peril coverage not mean?
Open-peril coverage is sometimes called all-risk coverage, but that shorthand can mislead. The form contains exclusions and limitations for causes and conditions such as wear and tear, deterioration, latent defect, settling, certain water or freezing losses, mold, earth movement, and ordinance or law, subject to the policy's precise exceptions.
The endorsement also does not raise the Coverage A limit. A broader cause-of-loss basis will not solve an underestimated limit for flooring, cabinetry, interior walls, or improvements.
How should a condo owner coordinate coverage?
Read the condominium declaration and bylaws, then obtain the association's current certificate and master-policy coverage summary. Determine whether the master policy is bare walls, single entity, or another arrangement and identify the deductible assessment exposure.
Set the HO-6 Coverage A limit around the property the unit owner must insure. Then confirm that HO 17 32 is actually listed. Current insurer materials identify HO 17 32 03 22 as an available unit-owner special-coverage endorsement.[2] Ask separately about Coverage C replacement cost, loss assessment, water backup, ordinance or law, and flood.
Frequently asked questions
Does HO 17 32 make an HO-6 policy open peril?
It changes eligible Coverage A property to an open-peril basis. It does not automatically change Coverage C personal property.
Does open peril mean every cause of loss is covered?
No. Direct physical loss is covered unless excluded or limited by the endorsement and the rest of the policy.
Does HO 17 32 increase my Coverage A limit?
No. It changes the covered-cause basis. The declarations still show the applicable limit.
Can the association master policy replace HO 17 32?
Not necessarily. The master policy and condominium documents determine the association's responsibility, while the HO-6 addresses the unit owner's interest.
This guide is for educational purposes and summarizes standard ISO policy concepts in original language. Form numbers and titles are used only for identification. Menlo Insurance Services is not affiliated with or approved by Insurance Services Office, Inc. Your policy, condominium documents, and attached endorsements control. Talk to a licensed agent about your unit.
References
- 1.Badger Mutual Insurance Company. “HO 17 32 05 11 Unit-Owners Coverage A Special Coverage.” https://portal.badgermutual.com/policy/agtsonly/Endorsements/Personal_Endorsements/HO_17_32_05_11.pdf ↩
- 2.Starwind Personal Lines. “Condominium Unit Owner Coverage Options.” https://portal.starwindpersonallines.com/Products/CondoUnitOwner ↩