What is the status of property confiscated or seized by order of a governmental authority under HO-3—Special Form?

Property that is confiscated or seized by order of a governmental authority is considered excluded from coverage under the HO-3—Special Form policy. This policy is designed to protect homeowners against a variety of risks, but it has specific exclusions outlined in its provisions. The exclusion of property that has been confiscated or seized reflects the understanding that insurance is not intended to cover losses resulting from governmental action that removes property ownership or rights.

In this context, the policy aims to provide coverage primarily for unforeseen events or accidents, while maintaining boundaries on liability for circumstances that fall within the purview of governmental authority. As a result, if a homeowner's property is seized for legal reasons, such as for noncompliance with laws or for public safety issues, the insurance will not provide compensation for such losses, emphasizing the limitations of coverage typically associated with actions taken by governmental entities.