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5.4 Other Coverages

Dwelling policies include an Other Coverages section rather than an Additional Coverages section. The protections listed in this section are automatically included in the policy without requiring the insured to pay an additional premium.

Applicable to All Dwelling Forms​

Debris Removal​

The policy pays the reasonable cost of removing debris from covered property when that property is damaged by a covered peril. Debris removal expenses are included within, rather than added to, the applicable limit of insurance for the damaged property.

Improvements, Alterations, and Additions​

When the insured is a tenant, up to 10% of the Coverage C limit may be used to cover improvements, alterations, or additions that the insured paid for or acquired. The property must be located within the portion of the described premises occupied exclusively by the named insured. For example, this coverage may apply to built-in cabinets installed and paid for by the tenant.

Under the Basic Form (DP–1), this coverage is included within the Coverage C limit. Under the Broad Form (DP–2) and Special Form (DP–3), it is provided as additional insurance and does not reduce the Coverage C limit.

Worldwide Coverage​

For a covered loss, the insured may apply up to 10% of the Coverage C limit of liability to personal property insured under Coverage C while that property is located anywhere in the world. This coverage does not extend to rowboats or canoes. Under the Basic Form, property belonging to guests or domestic employees is also excluded from this worldwide coverage.

The amount available for this coverage is part of the Coverage C limit of liability and does not provide additional insurance beyond that limit.

Rental Value and Additional Living Expenses​

Under the Basic Form, Coverage D provides insurance for a covered loss of fair rental value. The insured may use up to 20% of the Coverage A limit of liability for this coverage. Because the Coverage D amount is included within the Coverage A limit, any payment made for a fair rental value loss will reduce the amount remaining under Coverage A.

Note

Under a DP–1 policy, the insurer may limit the amount payable under Coverage D for each month of lost rental value. For example, the policy may pay up to 1/12 of the Coverage D limit for each month the rented portion of the described location is unfit for normal use. If the property is rented or available for rent for only part of the year, the insurer may use a different monthly proportion based on the number of months the property is normally rented.

Under the Broad and Special Forms, Coverage D provides insurance for a covered loss of fair rental value, while Coverage E provides insurance for additional living expenses. The insured may use up to 20% of the Coverage A limit for losses covered under Coverages D and E. This amount is provided as additional insurance, so payments made under these coverages do not reduce the Coverage A limit.

Reasonable Repairs​

When covered property is damaged by an insured peril, the policy will reimburse the named insured for reasonable expenses incurred to take necessary measures that protect the property from further damage. For example, if hail creates a hole in the roof, the cost of temporarily covering the opening with a tarp may be covered.

This coverage is included within the limit of insurance that applies to the damaged property. It does not provide additional insurance or increase the applicable policy limit.

Property Removed​

When covered property is removed from the described location to protect it from an insured peril, the policy covers direct physical loss to that property caused by any peril while it is away from the premises.

An Insurance Story

A fire at a neighboring home threatens the Nelsons' shed and the lawn-maintenance equipment stored inside it. To protect their personal property in case the fire spreads, the Nelsons move their lawn mower and other equipment away from the premises. Three days later, the lawn mower is stolen. Although theft is not ordinarily covered under the Nelsons' Broad Form policy, the stolen lawn mower would be covered. Because the property was removed to protect it from a covered peril, the Removed Property coverage applies on an open-perils basis while the property is away from the described location.

Under the DP–1, removed property is covered for up to 5 days. Under the DP–2 and DP–3, removed property is covered for up to 30 days.

This coverage does not provide additional insurance or increase the limit that applies to the removed property.

Fire Department Service Charge​

Under all Dwelling policy forms, the insurer will pay up to $500 for fire department service charges that the named insured is legally obligated to pay under a contract or agreement. Coverage applies when a fire department from another city, municipality, or fire protection district is called to protect covered property from an insured peril. It does not apply when the property is located within the jurisdiction of the responding fire department. In practical terms, this coverage pays for charges imposed by an outside or assisting fire department.

This coverage is provided as additional insurance, and no policy deductible applies.

Applicable to the Broad and Special Forms Only​

Trees, Shrubs, and Other Plants​

Coverage applies to trees, shrubs, plants, and lawns located at the described location when they are damaged by any of the following perils:

  • Fire or lightning
  • Explosion
  • Riot or civil commotion
  • Aircraft
  • Vehicles, unless the vehicle is owned or operated by the named insured or a resident of the described location
  • Vandalism or malicious mischief, including damage caused during a burglary; however, theft of the property itself is not covered

Note

Several perils that frequently damage trees, shrubs, plants, and lawns are not covered. These include wind, hail, and the weight of snow, ice, or sleet. Loss caused by theft is also excluded.

The policy provides a total limit of up to 5% of the Coverage A limit for covered losses to trees, shrubs, and plants. However, no more than $500 will be paid for any one tree, shrub, or plant. This coverage is provided as additional insurance and does not reduce the Coverage A limit.

Collapse​

Collapse means the sudden falling down or caving in of a building, or part of a building, to the extent that it can no longer be occupied or used for its intended purpose. A building is not considered to be in a state of collapse merely because it is in danger of falling or caving in while it remains standing. Collapse also does not include damage caused by settling, cracking, shrinking, bulging, or expansion.

Under the DP–2 and DP–3, coverage applies to direct physical loss to covered property involving the collapse of a building, or any part of a building, when the collapse results from one of the following causes:

  • Any named peril covered under the Broad Form
  • Hidden and unknown decay
  • Hidden and unknown damage caused by insects or vermin
  • The weight of contents, equipment, animals, or people
  • The weight of rain that collects on the roof
  • Defective construction materials or methods, provided the collapse occurs while construction, remodeling, or renovation is in progress

This coverage is included within the limit of insurance that applies to the damaged property and does not increase that limit.

Glass or Safety Glazing Material​

Coverage applies to the breakage of glass or safety-glazing material that is part of a covered building, storm door, or storm window. It also covers breakage caused by earth movement, even though earth movement is generally excluded under the policy. In addition, the policy covers direct physical loss to other covered property caused by pieces, fragments, or splinters of the broken glass or glazing material.

Coverage does not apply if the dwelling was vacant for the 60 consecutive days immediately preceding the loss. However, this vacancy restriction does not apply when the loss is caused by an earthquake.

This coverage is included within the limit of liability that applies to the damaged property and does not increase that limit.

Ordinance or Law​

Ordinance or law coverage pays the increased costs the named insured incurs when a covered building or structure is damaged by an insured peril and must comply with an enforced building code, ordinance, or law. These requirements may govern the construction, demolition, remodeling, renovation, or repair of the damaged property.

Example

A building code may require damaged wood siding to be replaced with more expensive fiber-cement siding. Ordinance or law coverage would pay the additional cost of complying with this requirement.

If the named insured owns the described location, up to 10% of the Coverage A limit may be used to pay covered ordinance or law costs. If the named insured is a tenant, up to 10% of the limit available under the Improvements, Alterations, and Additions Other Coverage may be used. In either case, the applicable amount is provided as additional insurance and does not reduce the underlying coverage limit.

The named insured may use some or all of the applicable coverage limit to pay increased debris-removal costs resulting from the construction, demolition, remodeling, renovation, repair, or replacement of covered property.

Coverage does not apply to any reduction in the value of a building or structure. It also excludes costs resulting from an ordinance or law that requires the cleanup, removal, containment, or treatment of pollutants.