When an 'other structure' does not meet a policy's definition
Coverage Q&A: The policyholder installed solar panels to the property's carport, which they insured as an 'other structure.'
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Editor’s Note: The language of a policy is important. In this week’s question, there is a dispute between a policy’s definition of “building structure” instead of the more general “ other structure.”
Question: The insured installed solar panels on the carport and power room on his property. He specifically increased the usual 10% coverage for “other structures” to ensure that he was covered.
The solar panels installed on the carport are essential and are the only power source for the dwelling. The carport serves two functions: covered parking and mounting for solar panels directly above the power room.
The insurance company sent a denial letter quoting only a portion of the additional coverages, which I feel is misleading. We believe the insurance company misinterpreted the policy’s collapse coverage for “other structures” by considering the loss as damage to the “building structure.” Thoughts?
— Texas Subscriber
Analysis: The most important thing in dealing with a loss is knowing the policy you are working with. Every policy has a definitions section, where various terms are defined so that both the insurer and the insured use the term the same way. As the terms are used throughout the policy those definitions help identify what is and is not covered. While many policies use the same language, some will differ. This often causes confusion because something commonly covered in the standard policy may differ in a carrier-specific policy.
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