Misunderstood Personal Lines Issues (Part 1)

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Other structures The questions What are they? How much are they covered for? What if I have a lot of "other structures" on my property? Let's look at the policy... Coverage B - Other Structures We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. This coverage does not apply to land, including land on which the other structures are located. We do not cover other structures: 1. Used in whole or in part for "business"; or rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability. The answers What are they? Other structures are really outbuildings or garages set apart and not connected by a roofline or wall. They can be a kennel, pool house, studio, guesthouse, or a one- or multi-car garage. How much are they covered for? They are covered for 10% of the dwelling amount, which in the case of multiple outbuildings, would not be enough coverage. What if I have a lot of "other structures" on my property? The coverage can be increased with the use of an endorsement that covers the specified buildings and then leaves the 10% intact on the policy.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.