Additional Homeowners Coverages

Debris Removal Coverage Pays to: remove & dispose of debris of covered property if damaged by a covered peril Limit: the limit for the type of property involved Debris from Dwelling: subject to Coverage A limit Debris from Other Structures: subject to Coverage B limit Debris from Personal Property: subject to coverage C limit

Additional Debris Removal Coverage When needed Debris Removal can pay an additional 5% of the applicable limit: Coverage A property: 5% of Coverage A limit Coverage B property: 5% of Coverage B limit Coverage C property: 5% of Coverage C limit Bill’s Coverage B limit is $15,000. He sustains: $12,000 in damage to his detached garage $3,000 in damage to fencing $700 in damage to shed on a permanent foundation $1200 in debris removal All of these items are insured under Coverage B, but the total damage is $16,900. Bill’s Debris Removal coverage would provide an additional 5% of the Coverage B limit (5% of $15,000 is $750) Bill’s total allowance: $15,750

Reasonable Repairs Coverage reimburses homeowner for expenses to protect property from further damage Remember: it is the policyholder’s duty to protect his property from further damage after an occurrence. For example, if a burglar kicks in Savon’s door and rains comes in through the door he may have to pay for a repairman to fix the door. This clause, Reasonable Repairs, would reimburse Savon for the expense of these temporary repairs.

Tree, Shrubs, etc. Pays to replace plantings lost to certain named perils: Lightning Vandalism Fire Coverage limited to $500 per tree, shrub, etc

Fire Department Service Charge Limit: $500 Additional Insurance No deductible

Loss Assessment For condo owners under HO-6 Pays when condo association charges an assessment after a loss Limit: typically $1000 or $2500 per claim

Property Removal Provides coverage for items that the insured removes from danger if a covered peril is imminent Property remains covered under the original peril for up to 30 days No matter what damages the property during this time, it will still be covered under the peril that the insured was trying to protect it from Example: Property coverage would cover Aramis’ TV even though she was unsuccessful in her attempt to remove it from the impending storm.

Credit Card Fraud Reimburses the policyholder for fraudulent credit card charges Includes forgery of checks Limit: $500

Collapse & Glass Breakage Applies if the collapse was caused by: Hidden decay or insect damage Weight of contents, including people Weight of precipitation on roof Use of defective materials if during construction NOTE: Collapse is not covered if caused by earth movement, such as settling, shrinking, expansion, cracking, or bulging The following is excluded – awning, fences, patios, swimming pools, underground pipes, septic tanks, foundations, retaining walls, and docks.

Ordinance or Law Pays difference between old construction & new code-required construction during repair or damage due to a covered peril Example: code-required wiring upgrade when repairing fir damage Pays up to 10% OF THE COVERAGE a LIMIT AS ADDITIONAL INSURANCE Does not cover Ordinances or Laws as perils; this is specifically excluded Example: law requires you to tear down your shed

Ordinance and Law is also an Exclusion You may not make a claim because you find out your local building code requires you to demolish your shed because it's too close to wetlands. But suppose your kitchen walls are severely burned in a fire that is covered by your policy. During the rebuild your electrician finds old "knob and tube" wiring. If upgraded wiring is required in order to obtain the necessary permits for repair, the coverage for Ordinance or Law pays the upgrade cost, up to the limits of liability of this coverage

Landlord’s Furnishings Designed to protect a landlord who rents out a furnished room Pays in addition to the Coverage A limit Limit: $2500

Building Additions and Alterations For HO-4 & HO-6 only Covers structural alterations made at renter’s or unit owner’s own expense

Grave Markers Protects against damage to grave plots due to covered perils Limit: $5,000 Grave Markers coverage would pay to replace a marble gravestone that was destroyed by vandals

Exclusion Risks or causes of loss that the insurer decides not to cover Named peril = few exclusions – narrow coverage Open peril = many exclusions – wide coverage

Other exclusions Ordinance and law Earth movement Water damage Off-premises power failure Neglect War Nuclear hazard Intentional acts

Section I Conditions Insurable Interest Insured’s duties after loss Loss settlement Recoverable depreciation Appraisal of damaged or lost property Mortgagee clause Other insurance Lawsuit against the insurer Abandonment Intentional acts

Loss Settlement Personal Property is usually covered at ACV: ACV valuation subtracts depreciation from cost of new item Age and condition (wear * tear) of item are factors of its depreciation If residence and other structures are covered for RC: Replacement is of like, kind, quality or original structure Insured must show what has already been spent on repair, if any

In review, The HO policy coverage form is split into two parts In review, The HO policy coverage form is split into two parts. Part one discusses Property coverage which is provided by four coverage forms. Coverage A includes the dwelling itself, structures attached to the dwelling, and also materials located near the dwelling. Coverage B incorporates the detached structures that are also owned by the homeowner. This includes detached garages, gazebos, fences, mailboxes, sheds and the like. However, it does not include detached structures that are wholly rented out to someone else. Coverage C discusses personal property inside the dwelling, otherwise known as "contents." This includes furniture, jewelry, kitchenware, and other objects. Coverage D provides any additional living expenses needed when an indirect loss is the result of a direct loss. For instance, if you need to live in a hotel because your house burns down, Coverage D would pay for the hotel expenses

Liability coverage: pays damages to someone who suffers loss caused by the insured. Example: Cari’s daughter is playing ball in their front yard. She hits a neighbor in the head with a stray baseball. Cari’s liability coverage will indemnify his neighbor for medical payments. In insurance, this third party is one who believes he is owed payment by the first party, who would file a claim with an insurer. This third party is sometimes known as "the unknown claimant." HO Liability Coverage

HO Liability Coverages Medical bills Lost wages Pain & suffering Inconvenience Property damage HO Liability Coverages

Coverage E – Personal Liability Pays for bodily injury and property damage to 3rd party if insured is found negligent Applies event if the insured’s property causes a 3rd party damages Never pays the insured Example If your improperly secured ladder falls and damages your neighbor’s roof, Coverage E would pay for your neighbor’s repairs costs.

Coverage E – Personal Liability $100,000 min. coverage Pays insured’s legal defense fees Legal defense; insurer pays fees all the way to the end of a lawsuit, even if limit is exceeded Insurer has the right to settle damages with the claimant however it wants Coverage E – Personal Liability

Coverage F – Medical Payments No Fault Coverage For medical expenses incurred by 3rd party due to an accident on insured’s premises Only necessary, reasonable medical charges $1000 min limit Eligible expenses include reasonable charges for: Medical services Surgery X-Rays Dental costs Ambulance services Hospital stays Professional Nursing Prosthetic Devices, and Funeral Services