This coverage is additional insurance.

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.

The Executive Homeowners Coverage Form contains the following language:

SECTION I – CONDITIONS

1. Loss Settlement

2. Buildings

Specified Additional Amount Of Insurance For Coverage A – Dwelling

If the amount of damage to the dwelling on the “residence premises” exceeds the limit shown in the Declarations for Coverage A, and you have:

1. Allowed us to adjust the Coverage A limit of liability and the premium in accordance with:

a. The property evaluations we make; and

b. Any increases in inflation; and

2. Notified us, within 30 days of completion, of any improvements, alterations or additions to the dwelling which increase the replacement cost by more than 5% or $10,000, whichever is smaller;

We will provide as additional amount of insurance, up to 50% of the Coverage A limit or liability, provided you elect to repair or replace the damaged or destroyed dwelling building.

In this claim, the above conditions have been met. 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

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; endorsements generally then state that all other policy provisions apply. In the HO 00 03 10 00 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.