August 2, 2012
Our insured has an HO3 which includes E. Additional Coverages 3. Trees, Shrubs, And Other Plants, which provides coverage up to $500 per tree if struck by lightning. The last line states, “This coverage is additional coverage.” It does not mention “deductible.”
Under Additional Coverages, 4. Fire Department Service Charge, it provides coverage for fire department charges. The last sentence quotes, “This coverage is additional insurance. No deductible applies to this coverage.”
6. Credit Card, etc. “This coverage is additional insurance. No deductible applies to this coverage.”
7. Loss assessment. “This coverage is additional insurance.” No mention of deductible.
11. Ordinance of Law. “This coverage is additional insurance.” No mention of deductible.
It appears to me that the deductible, in this case $1000, applies unless it is specifically stated to the contrary. Do you agree?
Now I have to wonder why give “additional coverage” if the deductible precludes payment.
Can you give any further explanation?
North Carolina Subscriber
You are correct in that the deductible applies unless otherwise specified. With some of the additional coverages, the amount of the loss can be above the deductible, then the additional coverage applies. The additional coverage truly is additional once the deductible has been applied.