Ohio Subscriber

A

The addition of the connecting deck causes the garage to become a part of the dwelling. Coverage B applies only to structures “set apart from the dwelling by clear space” including “structures connected to the dwelling by only a fence, utility line, or similar connection.” A deck is clearly not a connection “similar to” a fence or utility line. It is a connection sufficient to cause the dwelling and garage to be treated as a single building insured under dwelling coverage A.

The insured is fortunate in this case. The full coverage A limit of insurance becomes available to pay the loss. This is subject only to the 80 percent-of-replacement provision of the loss settlement condition that could limit recovery to actual cash value or to a reduced portion of full replacement cost above the actual cash value of the loss.

Had the loss spread to the dwelling, the insured might have been worse off. In that case, the insured would have only the limit of insurance for coverage A to pay the entire claim, and if the loss to the dwelling and deck exceeded the limit, the insured would not have another 10 percent of the limit to apply to the garage.

It is important for insureds, as well as agents, to realize that substantial alterations or additions can affect insurance to value.