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
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. 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

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

25. 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