Debris removal and insurance coverage extensions
Coverage Q&A: Endorsements apply to specific coverages or parts of the insurance policy.
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Question: This query pertains to a California homeowners’ policy (HO3 ISO HO 00 03 10 00) that also carriers the Executive Homeowners’ Coverage Form (UN 09 56 04 09).
The question involves the application of the additional coverage for debris removal. The policy provides the standard additional 5% of policy limits if the cost to repair exceeds the policy limit. The endorsement provides additional insurance up to 50% of the coverage A amount.
In this claim, the limit has been exceeded. The question is, does the additional coverage of 5% for debris removal, also apply to the additional 50% of the coverage A limit.
— Florida subscriber
Answer: Chances are that your endorsement form also includes language similar to the following: All other provisions of this policy apply. Endorsements apply to specific coverages or parts of the policy. They generally then state that all other policy provisions apply.
In the homeowners’ policy you’ve mentioned, under debris removal, it states that:
“We agree that if the cost to repair the damaged property, plus the cost for Debris Removal exceeds the Policy Limit as shown on the Policy Declaration, the policy provides additional coverage, equal to 5% of the Policy Limit, for the cost for Debris Removal.”
Emphasis is added, but the policy clearly states if the debris removal exceeds the limit on the dec, that an additional 5% applies. It makes sense that with that policy language the 5% only applies to the amount on the dec, and not the amount of increase allowed by the endorsement.
If your endorsement does not have the language stating that all other policy conditions apply, then you may be able to apply the 5% to the additional amount added by the endorsement. You need to look at your endorsement; the statement is usually the last line.
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