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6.5 Section I Additional Coverages

Both sections of the Homeowners policy automatically include Additional Coverages. Under Section I, each Additional Coverage has its own limit of insurance. The limit may be stated as a percentage of the applicable Coverage A, B, or C limit, or it may be provided as a separate, specified dollar amount.

Applicable to All Homeowners Forms​

Debris Removal​

When a covered loss creates debris that must be removed, the policy pays the reasonable debris removal expenses from the limit of insurance that applies to the damaged property. If the combined cost of the property damage and debris removal uses the entire applicable limit, the policy provides an additional amount of up to 5% of that limit specifically for debris removal expenses.

Example

A dwelling has a Coverage A limit of $100,000. A covered loss causes $90,000 in damage to the dwelling and results in $15,000 of debris removal expenses.

The policy first pays the $90,000 dwelling loss under Coverage A. This leaves $10,000 of the Coverage A limit available for debris removal:

$100,000 − $90,000 = $10,000

The remaining $10,000 under Coverage A pays part of the debris removal expenses. Because the property damage and debris removal expenses exhaust the Coverage A limit, the Debris Removal Additional Coverage provides up to an additional 5% of the Coverage A limit:

5% × $100,000 = $5,000

The additional $5,000 pays the remaining debris removal expenses. Therefore, the policy pays the full $105,000 loss:

  • $90,000 for damage to the dwelling
  • $15,000 for debris removal

If the covered loss involved another structure, such as a detached garage, the debris removal expenses would be paid from the Coverage B limit. Any additional debris removal amount would equal up to 5% of the applicable Coverage B limit.

Debris Removal Additional Coverage also provides up to $1,000 for the removal of trees that are felled by windstorm, hail, or the weight of ice, snow, or sleet. Coverage applies only when a fallen tree:

  • Damages a covered structure;
  • Blocks a driveway and prevents a registered motor vehicle from entering or leaving the residence premises; or
  • Blocks a ramp or other fixture designed to assist a person with a disability in entering or leaving the dwelling.

The policy will pay no more than $500 for the removal of any one tree. This coverage is provided as additional insurance and does not reduce the policy's other applicable limits of insurance.

Reasonable Repairs​

When covered property is damaged by an insured peril, this Additional Coverage pays the reasonable cost of necessary steps taken to prevent further damage. For example, coverage may apply to the cost of placing a temporary tarp over a hole in the roof after a covered loss. These expenses are paid from the limit of insurance that applies to the damaged property. This coverage does not provide an additional amount of insurance or increase the applicable policy limit.

Trees, Shrubs, and Other Plants​

This Additional Coverage protects trees, shrubs, and other plants when they are damaged by any of the following covered perils: fire, lightning, explosion, riot or civil commotion, aircraft, vandalism or malicious mischief, theft, or vehicles not owned or operated by a resident of the household.

Under most Homeowners forms, coverage for trees, shrubs, and other plants is limited to 5% of the Coverage A limit. The HO–4 and HO–6 forms instead provide a limit equal to 10% of the Coverage C limit. This coverage is provided as additional insurance, meaning that it does not reduce the policy's other applicable limits. However, the policy will pay no more than $500 for any one tree, shrub, or plant.

This Additional Coverage does not apply to damage caused by windstorm, hail, or the weight of ice, snow, or sleet.

Fire Department Service Charge​

If a fire department from another district responds to protect covered property from an insured peril and the insured is legally responsible for the resulting service charge, this Additional Coverage will pay up to $500. No deductible applies to this coverage.

Property Removed​

When covered property is endangered by an insured peril, the insured may remove it from the premises to protect it from damage. Once removed, the property is insured for up to 30 days on an open-perils basis. For this Additional Coverage, open-perils coverage protects the removed property against loss from any cause, without the policy exclusions otherwise applying. However, this coverage does not increase the limit of insurance that applies to the property.

Credit Cards, Electronic Fund Transfer Card or Access Device, Forgery, and Counterfeit Money​

This Additional Coverage provides up to $500 of additional insurance for certain financial losses. No deductible applies. Coverage includes:

  • An insured's legal obligation to pay for the theft or unauthorized use of a credit card;
  • Loss resulting from the theft or unauthorized use of an insured's electronic fund transfer card or access device;
  • Loss caused by the forgery or alteration of a check or other negotiable instrument; and
  • Loss resulting from an insured's good-faith acceptance of counterfeit United States or Canadian currency.

Coverage does not apply when a credit card, fund transfer card, or access device is used by:

  • A resident of the insured's household;
  • A person who was entrusted with the card or device; or
  • Any person using the card or device for business purposes.

When a covered claim occurs, the insurer has the right to investigate and settle the claim as it considers appropriate. The insurer must also provide and pay for the insured's legal defense against a covered claim.

Loss Assessment​

Property owners who belong to a condominium association, homeowners association, or similar organization may share ownership of certain property, such as common areas, buildings, or recreational facilities. When collectively owned property is damaged, the association may charge each member a portion of the loss. The amount charged to an individual property owner is called a loss assessment.

The Loss Assessment Additional Coverage provides up to $1,000 for the named insured's share of an assessment imposed by a corporation or association of property owners. Coverage applies when the assessment results from direct damage to collectively owned property caused by a peril insured against under the policy. This amount is provided as additional insurance and does not reduce the policy's other applicable limits.

Loss Assessment Coverage does not apply to assessments imposed on the insured by a federal, state, or local governmental authority.

Glass or Safety Glazing Material​

This Additional Coverage applies to:

  • The breakage of glass or safety glazing material that forms part of a covered building, storm door, or storm window, including breakage caused by earth movement; and
  • Direct physical damage to covered property caused solely by the pieces, fragments, or splinters of the broken glass or safety glazing material.

Except for loss caused by earth movement, this Additional Coverage does not apply if the dwelling was vacant for more than 60 consecutive days immediately before the loss occurred.

The cost of this coverage is paid from the limit of insurance that applies to the damaged property. It does not provide an additional amount of insurance or increase the applicable coverage limit.

Collapse​

Collapse coverage applies when a building, or part of a building, abruptly falls down or caves in and can no longer be used for its intended purpose. To qualify for coverage, the collapse must cause direct physical loss to covered property and result from one of the following causes:

  • A peril insured against under the policy. This generally refers to the Broad Form named perils; however, the HO–5 applies the open-perils coverage provided under Coverages A and B;
  • Hidden decay;
  • Hidden damage caused by insects or vermin;
  • The weight of contents, animals, people, or equipment;
  • The weight of rain that collects on a roof; or
  • Defective materials or construction methods used during the construction, remodeling, or renovation of the building.

Collapse coverage generally does not apply to awnings, fences, patios, septic tanks, swimming pools, foundations, or similar structures or components. However, coverage may apply when the damage to one of these items results directly from the covered collapse of a building or part of a building.

This coverage is paid from the limit of insurance that applies to the damaged property. It does not provide an additional amount of insurance or increase the applicable coverage limit.

Ordinance or Law​

This Additional Coverage pays certain increased costs the insured incurs when an ordinance or law is enforced following damage to a covered building by an insured peril. Coverage applies to costs associated with:

  • The construction, demolition, remodeling, renovation, or repair of the damaged portion of the covered building;
  • The demolition and reconstruction of an undamaged portion of the building when the entire structure must be demolished because another portion sustained covered damage; and
  • The remodeling, removal, or replacement of an undamaged portion of the building when necessary to complete the repair, remodeling, or replacement of the damaged portion.

This Additional Coverage does not apply to: the value of a covered structure; or

  • Costs associated with testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, or neutralizing pollutants.

Under most Homeowners forms, the insured may use up to 10% of the Coverage A limit for this Additional Coverage. Because the HO–4 form does not provide Coverage A, its limit is equal to 10% of the amount available under the Building Additions and Alterations Additional Coverage. This coverage is provided as additional insurance and does not reduce the policy's other applicable limits.

Grave Markers​

This Additional Coverage provides up to $5,000 for damage to grave markers, whether they are located on or away from the residence premises. Coverage applies when the damage is caused by a peril insured against under Coverage C.

Payment for this coverage is made from the limit of insurance that applies to the damaged property. It does not provide additional insurance or increase the applicable coverage limit.

Applicable to the HO-2, HO-3, and HO-5 Only​

Landlord's Furnishings​

When the insured regularly rents, or holds for rental, an apartment or other unit located on the residence premises, this Additional Coverage provides up to $2,500 of additional insurance for property owned by the insured and used in the rental unit. Covered property may include appliances, carpeting, and other household furnishings. These items are insured against the Broad Form named perils, except that theft is not covered.

Applicable to the HO-4 Only​

Building Alterations and Additions​

When a tenant makes or acquires building improvements, alterations, or installations at the tenant's own expense, the property is covered under Coverage C. This Additional Coverage provides an amount of insurance equal to 10% of the Coverage C limit. The amount is provided as additional insurance and does not reduce the Coverage C limit available for other covered personal property.