§ 122 Residential Fire Insurance Coverage

This law lets an insurer that is approved for many kinds of insurance add extra coverage for things like personal belongings, small boats, farm equipment, and horses to a fire insurance policy for a home, as long as the policy follows certain forms and is only for non‑business use.

Key Takeaways

•The insurer must be admitted for all insurance classes listed in Sections 102, 107, 108, 112, and 120.
•The fire policy must use form 2070 or 2071 and cover only non‑commercial homes up to four families.
•Extra coverage can be added for personal effects, small boats (max $500), farm equipment, horses, and other personal property, but not workers’ compensation.

Example

A family lives in a three‑family house and has a fire insurance policy that uses form 2070. They also own a small 12‑foot boat, some farm tools, and a horse. The insurer can add coverage for the boat (up to $500), the farm tools, the horse, and other personal items to the same fire policy.

Because the insurer is admitted for all the required classes and the policy is for a non‑commercial residence, the insurer can include the extra coverages listed in subsection (b) in the same policy.

(a) An insurer admitted for all the classes of insurance defined in Sections 102, 107, 108, 112, and 120 is authorized, in addition to the underwriting powers granted by such classes, to include any and all insurance described in paragraph (b) in a policy which contains fire coverage written on a form complying with either Section 2070 or 2071 and which provides insurance covering only noncommercial risks and covering either residence properties (not more extensive than a four-family dwelling) and appurtenances, or the contents thereof other than merchandise, or both. (b) Such insurance is any or all insurance against all risks of physical loss of, damage to, or personal liability (except workers’ compensation) for injury to person or damage to property incident to, any or all of the following: (1) The location described and property covered by the fire insurance policy as described in subdivision (a), (2) Personal effects, (3) Boats not over 16 feet in length (including furnishings, equipment, outboard motors, and trailers); provided the physical loss or damage coverage does not exceed five hundred dollars ($500), (4) Personal property intended primarily for residential or recreational use, (excluding boats except as provided above), (5) Farm implements or self-propelled vehicles, excluding automobiles and aircraft, and, (6) Horses, including accouterments and vehicles or implements to be drawn thereby. (Amended by Stats. 2018, Ch. 231, Sec. 4. (AB 2045) Effective January 1, 2019.)

Key Takeaways

•The insurer must be admitted for all insurance classes listed in Sections 102, 107, 108, 112, and 120.
•The fire policy must use form 2070 or 2071 and cover only non‑commercial homes up to four families.
•Extra coverage can be added for personal effects, small boats (max $500), farm equipment, horses, and other personal property, but not workers’ compensation.

Key Takeaways

Example

Key Terms

References

§ 122 Residential Fire Insurance Coverage

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References