Additional Homeowners Coverages

1. Additional Homeowners Coverages

2. 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

3. 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

4. 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.

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

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

7. 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

8. 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.

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

10. 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.

11. 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

12. 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

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

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

15. 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

16. 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

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

18. 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

19. 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

20. 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

21. HO Liability Coverage

22. HO Liability Coverages

23. 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.

24. Coverage E – Personal Liability

25. Coverage F – Medical Payments Eligible expenses include reasonable charges for: Medical services Surgery X-Rays Dental costs Ambulance services Hospital stays Professional Nursing Prosthetic Devices, and Funeral Services • 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