| Insurance:
Understanding
the policy
Understanding
the policy
- Declarations Page - Dwelling
-
Other
Structures - Personal
Property - Living Expenses -
Debris
Removal - Landscape - Other
Coverages
Other
Structures Coverage
1.
What is an “other structure”?
Most
fire policies divide coverage on your real property into two categories:
1) Dwelling, and 2) Other Structures.
Click
HERE
for a printable version of this answer.
“Other
Structures” (also called Appurtenant Structures) is one of the difficult
parts of your insurance coverage. Our experience has been that
property owners can find themselves under-insured for “Other Structures”
coverage. At 10% of Dwelling coverage, Other Structures can be
20 to 50% of more of the value of the Dwelling. Be certain that
you have full coverage on your Other Structure as they are exposed to
the same risks as your Dwelling.
Understand
your policy and develop a reasonable interpretation of its language.
Also, realize that the settlement process is a “sales negotiation”
process. The first number the adjuster comes up with is the first
“offer” and only the beginning of the “sales negotiation” process.
What
Definition?
Read
your policy very carefully under the “Dwelling” portion of the Coverages
section. You will see a clause similar to this:
“We cover the dwelling on the residence premises shown in the Declarations
used principally as a private residence, including structures attached
to the dwelling ....” [emphasis
added.]
Attached,
means:
In contact with Affixed Fastened
Bound
Tacked on
Hitched Joined
Stuck on
Appended
Belong
Any
structure, then, that is “in contact with” (Department of Insurance Manual,
1989, Page 118) your dwelling should be covered under your “Dwelling”
and not “Other Structure”.
Your
“Other Structures” clause will read something like:
“We will cover other structures on the residence premises, separated
from the dwelling by clear space .
This includes structures connected to the dwelling by only
a fence, utility line or similar connection
.” [emphasis
added]
To
disqualify as Dwelling so as to become an Other Structure,
the item has to be separated and connected by only
a fence, utility line or similar connection.
“Only” is defined as: “Exclusively; solely. Without anyone
or anything else; alone.”
A driveway
or walkway is not similar to a fence or utility line.
Numerous
connections, fence and concrete and water line and
electric line and so on are not “ only” or a single item
connecting structures.
[Top]
|
