The Homeowners Policy

A Video Explanation of the Basic Homeowners Policy

The video explaining the homeowners policy is now available at

The Homeowners 3 – Special Form

A type of Homeowners 3 – Special Form for the American Association of Insurance Services, Inc (AAIS) – HO 00 03 01 06 is included used as a basis for this analysis. Samples are available here.  The following is an analysis of the important parts of the basic homeowner’s insurance policy. Unlike the Standard Fire Insurance policy the Homeowners 3 is written in “easy to read” language rather than precise legal wording. The following analysis is presented to assist the insured in reading the policy but is not a replacement for actually reading the entire wording of the policy with consideration of the facts of the loss to which the policy might apply.

The Insuring Agreement

This policy, subject to all of its “terms”, provides the described insurance coverages during the policy period. In return “you” must pay the required premium. Each of the Principal Coverages described in this policy applies only if a “limit” is shown on the “declarations” for that coverage.

This is the basic agreement telling the insured that coverages only exist if they are specified in the declarations page. Regardless of coverages provided by the basic wording if not specified in the declarations page there is no coverage for that risk.


(c) 2020 Barry Zalma and ClaimSchool, Inc.

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant  specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at and

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 52 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

Read posts from Barry Zalma at

Go to Zalma on Insurance on YouTube

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About Barry Zalma

An insurance coverage and claims handling author, consultant and expert witness with more than 48 years of practical and court room experience.
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