Additional Coverages

The discussions on other sections of the form can be found here: 

Part 1 – Agreement, Definitions

Part 2 – Coverage C, Coverage D, Additional coverages

Part 3 – Perils Insured Against, Exclusions

Part 4 – Conditions Section I

Part 5 – Section II liability 

SECTION I – PROPERTY COVERAGES

A. Coverage C – Personal Property

1. Covered Property

We cover personal property owned or used by an "insured" while it is anywhere in the world. After a loss and at your request, we will cover personal property owned by:

a.Others while the property is on the part of the "residence premises" occupied by an "insured"; or

b.A guest while the property is in any residence occupied by an "insured".

2. Special Limit Of Liability

A special limit of 10% of the limit of liability that applies to Coverage C is the total limit for each loss for all property in the categories shown below. This special limit does not increase the Coverage C limit of liability.

a. Money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platinumware, coins, medals, scrip, stored value cards and smart cards;

b. Securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists.

This limit includes the cost to research, replace or restore the information from the lost or damaged material;

c. Loss by theft of jewelry, watches, furs, precious and semiprecious stones;

d. Loss by theft of firearms and related equipment;

e. Loss by theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinumplated ware and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter;

f. Property used primarily for "business" purposes;

g. Antiques, fine arts, paintings and similar articles of rarity or antiquity; or

h. Model or hobby:

(1) Aircraft; or

(2) Watercraft;

not used or designed to carry people or cargo. 

Analysis:

The covered property section begins identically to the HO 00 04. Personal property owned or used by the insured is covered while anywhere in the world, and property of others is covered while on the "residence premises" occupied by an insured, or a guest while the property is in a residence occupied by an "insured'. The insured must make a request for coverage for property of others to be covered. If Aunt Mabel is visiting the insured and the insured has a fire that damages Aunt Mabel's belongings as well as the insured's, the insured must ask the insurer for Aunt Mabel's property to be covered.  

Special limits are presented next. The HO 00 14 removes the section Limit for Property at Other Locations found in the HO 00 04, which provides coverage for property at residences other than the "residence premises" and coverage for property at self-storage facilities found in the HO 00 04. Since this policy is designed for more mobile insureds, they are less likely to have property at other residences or in storage, and the coverage is tailored to their more mobile nature. 

Instead of specific dollar amounts for various types of property, the HO 00 14 uses 10 percent of the total Coverage C limit for the property listed. That property includes most of the items covered under special limits in the HO 00 04, as can be seen in the policy language. One category that is not normally listed in the HO 00 04 that is added to the HO 00 14 is antiques, fine arts, paintings and similar articles of rarity or antiquity. Such items are often quite valuable and should be scheduled separately. Model or hobby aircraft not designed to carry people or cargo are also included in this property listing. For example, cousin Billy likes to take his radio controlled car with him whenever he goes anywhere, so this car would be a covered property item.  

3. Property Not Covered

We do not cover:

a. Articles separately described and specifically insured regardless of the limit for which they are insured, in other insurance;

b. Animals, birds or fish;

c. "Motor vehicles".

This includes a motor vehicle's equipment, and parts, that are in or upon the "motor vehicle". However this Paragraph 3.c. does not apply to motor vehicles not required to be registered for use on public roads or property which are designed to assist the handicapped;

d. Aircraft, meaning any contrivance used or designed for flight, including any parts whether or not attached to the aircraft.

We do cover model or hobby aircraft not used or designed to carry people or cargo;

e. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles;

f. Watercraft that is designed to be propelled on or in water by wind, engine power or electric motor. We do cover model or hobby watercraft not used or designed to carry people or cargo;

g. Property of:

(1) A "home-sharing" occupant; (2) Any other person occupying the "residence premises" as a result of any "home-sharing host activities"; and (3) Roomers, boarders and other tenants, except property of roomers and boarders related to an "insured";

h. Property in an apartment regularly rented or held for rental to others by an "insured";

i. Property rented or held for rental to others off the "residence premises";

j. Property usually located at an "insured's" residence, other than the "residence premises"

k."Business" data, including such data stored in:

(1) Books of account, drawings or other paper records; or (2) Computers and related equipment.

We do cover the cost of blank recording or storage media and of prerecorded computer programs available on the retail market;

l. Virtual currency of any kind, by whatever name known, whether actual or fictitious including, but not limited to, digital currency, crypto currency or any other type of electronic currency; or

m. Any:

(1) Controlled Substances, other than "cannabis", as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812; and (2) "Cannabis" regardless of whether such "cannabis" is considered a Controlled Substance.

Controlled Substances include but are not limited to cocaine, LSD, and all narcotic drugs.

However, this Paragraph 3.m. does not apply to:

(3) Prescription drugs obtained following the lawful orders of a licensed health care professional; or (4) Goods or products containing or derived from hemp, including, but not limited to:

(a) Seeds; (b) Food; (c) Clothing; (d) Lotions, oils or extracts; (e) Building materials; or (f) Paper.

However, this Paragraph 3.m.(4) does not apply to the extent any such goods or products are prohibited under an applicable state or local statute, regulation or ordinance in the state where such goods or products are located.

Analysis:

Property not covered is the next section and it is straightforward. Animals, birds and fish are not covered, nor are "motor vehicles".  Animals, birds and fish would be those the insured owns as pets. This policy excludes motor vehicle equipment and parts that are in or upon the "motor vehicle" itself. However, if the vehicle is not required to be registered for use on public roads or is property that is designated to assist the handicapped, the exclusion does not apply. An ATV does not have to be registered to be used on public roads, and a motorized wheelchair is designed to assist the handicapped. Those vehicles would be covered. Unlike the HO 00 04, there is no exception for certain portable electronic equipment that can be used both with and without the power supply of the vehicle. 

Aircraft, hovercraft and watercraft are not covered, and there is an exception for model or hobby aircraft or watercraft that are not designed to carry people or cargo. For example, Uncle Brad flies radio controlled airplanes and takes them with him on vacation. Those hobby aircraft would be covered. 

Property of others is covered to an extent; some property of others is specifically listed as not covered, and that is property of "home-sharing occupants" or anyone on the premises as a result of the insured's "home-sharing host activities", and property of roomers, boarders and tenants unless they are related to the insured. 

Property in an apartment regularly rented to others and property rented or held for rental to others off premises is also not covered, as well as property that is usually located at a residence that is not the "residence premises" listed in this policy. For example, if the insured stores his surfboard at his weekend cottage, then that is not covered as it is property located at a residence that is not the "residence premises". If an insured regularly rents a room to others, it is more likely that that property will be damaged by the tenants; therefore such property is not covered. 

 "Business" data, including books of account, drawings or other paper records, computers and related equipment are not covered. In event of a loss, the cost of blank recording or storage media or prerecorded programs available from retail markets is covered. Otherwise, it is up to the insured to pay for recreating the lost accounts and information. 

With the invention of cryptocurrency, an exclusion for such virtual currency is included. The exclusion is broad and indicates that any kind of virtual currency, known by whatever name, actual or fictitious, but not limited to digital, crypto or electronic currency is not covered. Cryptocurrencies are evolving and new currencies emerge frequently. The policy wants to make it clear that no virtual currencies of any kind will be covered. The wide swings in value and the intangibleness make it very difficult to try to insure. 

Controlled substances other than "cannabis" as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812 are not covered, nor is "cannabis" whether or not it is considered a controlled substance. With more and more states making cannabis legal, it is possible that cannabis could be reclassified and no longer be considered a controlled substance under federal regulation. The policy identifies controlled substances as including but not limited to cocaine, LSD and all narcotics. 

An exception follows this exclusion allowing prescription drugs an insured obtains by following the lawful orders of a licensed healthcare professional. Hemp and hemp products are also listed as exceptions, including but not limited to seeds, food, clothes, lotions, oils, extracts, building materials or paper. If an insured is prescribed medical marijuana by his physician, then that property would be covered the same way prescriptions for narcotic pain relievers or other prescriptions would be covered. 

A further exception is listed for hemp and hemp products that states that the exception does not apply to goods and products that are prohibited by applicable state statutes, laws or ordinances. If Hannah lives in a state where hemp is legal, then the hemp products she uses are covered. However, when Hannah moves to a different state where hemp is prohibited, and she has a loss and files a claim including loss to her hemp products, those products will not be covered because of this exception. 

B.Coverage D – Loss Of Use

The limit of liability for Coverage D is the total limit for the coverages in 1. Additional Living Expense, 2. Fair Rental Value, 3. Lost Rental Value of "Home-Sharing Host Activities" and 4. Civil Authority Prohibits Use below.

1. Additional Living Expense

If a loss by a Peril Insured Against under this Policy to covered property or the building containing the property makes the "residence premises" not fit to live in, we cover any necessary increase in living expenses incurred by you and residents of your household who are:

a.Your relatives; or

b. Other persons under the age of 21 and in your care or the care of a resident of your household who is your relative;

so that your household can maintain its normal standard of living.

Payment will be for the shortest time required to repair or replace the damaged property or, if your household permanently relocates, the shortest time required for your household to settle elsewhere.

2. Fair Rental Value

If a loss covered under Section I makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the fair rental value of such premises less any expenses that do not continue while it is not fit to live in.

Payment will be for the shortest time required to repair or replace the damaged property.

3. Lost Rental Value Of Home-sharing Host Activities

If an "insured" has entered into a contract or agreement with another person through the use of a "homesharing network platform" for "home-sharing host activities" for a specified period of time, and either:

a. A loss covered under Section I makes that part of the "residence premises" used for such "homesharing host activities" not fit to live in during the period of time specified in such contract or agreement;

or

b. The "insured" or such other person cancels such contract or agreement, provided such cancellation takes place:

(1) During the period of time a National Weather Service hurricane watch or hurricane warning is in effect for any part of the state in which the:

(a) "Residence premises" is located; or

(b) Person entering into such contract or agreement with the "insured" resides; or

(2) Within 24 hours of the termination of such hurricane watch or hurricane warning described in Paragraph b.(1) of this provision;

we cover the lost rental value of the "home-sharing host activities" specified under such contract or agreement, less any expenses that do not continue while it is not fit to live in.

Payment will be for the shortest period of time agreed upon for "home-sharing host activities" under such contract or agreement.

4. Civil Authority Prohibits Use

If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1. Additional Living Expense above for no more than two weeks.

5. Loss Or Expense Not Covered

We do not cover loss or expense due to cancellation of a lease or agreement.

The periods of time under 1. Additional Living Expense, 2. Fair Rental Value, 3. Lost Rental Value Of "Homesharing Host Activities" and 4. Civil Authority Prohibits Use above are not limited by expiration of this Policy.

Analysis:

Loss of use coverage provides for situations where the insured may be unable to live or use the premises due to a covered cause of loss. The first coverage is additional living expenses, which provides coverage for increases in living expenses incurred by the insured because the premises has been damaged by a covered cause of loss and the premises is uninhabitable. 

Coverage is provided for the insured, relatives, and those under the age of twenty-one in care of a resident relative. Language pertaining to relatives and those under twenty-one has been added to all forms out of concerns that under the previous wording if the insured died in the loss the family might not receive coverage. Hence the language has been modified to include relatives of the insured for additional living expenses. 

Payment is for the shorter of the time to repair the premises or for the insured to relocate to a new premises. If an insured has a fire and needs to rent a hotel room for a few weeks but he is still paying for utilities and other expenses at the damaged premises, then the costs of the hotel room would be covered under additional living expenses. 

Fair rental value coverage is for when part of the premises is rented to others. If the part rented or held for rental to others becomes damaged by a covered cause of loss, then the rental value, less expenses that do not continue, will be covered until the earlier of when the property is repaired or the insured relocates. For example, the insured regularly rents the other side of a duplex. Normally when the property is not being rented the insured pays $200 per month to keep the utilities on. After a loss and while the property is being repaired, the utility bill drops to $100. Since $100 of the expense is not continuing, the insured will not be compensated for that amount. It is important to remember that with both additional living expenses and fair rental value that the damage must be by a covered cause of loss. Unlike the HO 00 04, the HO 00 14 is an open perils policy and not a named perils policy. This gives the insured broader coverage than the HO 00 04. 

Additional living expenses and fair rental value are familiar coverages. A new coverage is Lost Rental Value of Home-sharing Host Activities. This provides coverage for lost rental income when the insured premises has been damaged and is unlivable and a scheduled renter is not able to stay on the premises, or a scheduled renter cancels her stay because of a National Weather Service hurricane watch or hurricane warning in effect for any part of a state where the insured or the renter resides. This includes the time within twenty-four hours of the termination of the watch or warning. Payment is for the shortest period of time agreed upon for the home-sharing activities. A hurricane may make it impossible for the renter to leave his state, or he may be able to live in his state but might not be able to stay in the state he was traveling to because of the storm. For example, Jill has to cancel her bachelorette weekend that was to be held in Florida at the insured's house due to a hurricane warning issued by the National Weather Service affecting the insured's area. Since the bachlorette party was at the insured's residence through a home-sharing agreement, the loss of rental value of Jill and her guests would be covered.     

Coverage for when the civil authority prohibits use of the premises when a neighboring premises has been damaged is provided for up to two weeks. This is standard coverage. Again, the damage must be caused by a peril insured against. 

Not covered are expenses caused by the cancellation of a lease or agreement to rent the property. That type of loss is not related to physical damage, and is therefore not covered unless as specified under home-sharing activities. 

C. Additional Coverages

1. Debris Removal
   1. a. We will pay your reasonable expense for the removal of:

(1) Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or

(2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. 

This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit is available for such expense.

This coverage is additional insurance.

2. Reasonable Repairs
3. 1. a. We will pay the reasonable cost incurred by you for the necessary measures taken solely to protect covered property that is damaged by a Peril Insured Against from further damage.
   2. b. If the measures taken involve repair to other damaged property, we will only pay if that property is covered under this Policy and the damage is caused by a Peril Insured Against. This coverage does not:

(1) Increase the limit of liability that applies to the covered property; or

(2) Relieve you of your duties, in case of a loss to covered property, described in C.3. under Section I – Conditions.

3. Hard Drive Data Recovery

We cover expenses, up to $300 per policy period, for services to:

a. Diagnose;

b. Recover and/or restore;

loss to personal electronic data contained in your:

c. Personal computer;

d. Tablet;

e. Phone;

f. SD card; or

g. External drive;

due to data corruption, deletion or virus during the policy period.

This coverage is additional insurance. No deductible applies to this coverage.

4. Bed Bug Remediation

If determined by a licensed pest control, maintenance, remediation or extermination agent or organization whose operations meet all standards by any statute, ordinance, regulation or license requirement of any federal, state or local government which apply to those operations, that a bed bug infestation exists on the "residence premises" during the policy period, we cover expenses up to $500 per policy period to treat the infestation.

Treatments include, but are not limited to:

a. Spraying of pesticides;

b. Fumigation; or

c. Heat treatments;

by a licensed pest control, maintenance, remediation or extermination agent or organization whose operations meet all standards by any statute, ordinance, regulation or license requirement of any federal, state or local government which apply to those operations. Coverage does not include expense to determine if an infestation exists or replace property damaged or contaminated by the infestation or remediation treatment.

This coverage is additional insurance. No deductible applies to this coverage.

5. Property Removed

We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed.

This coverage does not increase the limit of liability that applies to the property being removed.

Analysis:

Additional coverages is the next section in the policy. Coverage tends to be for various expenses and not direct physical damage. The first is debris removal, which provides coverage for removing debris of covered property as long as it was damaged by a covered peril. Ash, dust or particles from a volcano eruption are covered as well if the ash, dust or particles cause direct loss to a building or property in the building. Damage caused by the insured cleaning the particles would not be covered; that is not direct damage.

If the amount of payment for damages and debris removal exceeds the limit on the policy, an additional 5 percent of the limit is available. For example, the insured has $150,000 of coverage and sustains a total loss. The amount of the loss is $150,000 yet there is another $6,000 in debris removal expenses. The policy provides 5 percent of the total, or $7,500 for debris removal above the $150,000 coverage amount. Therefore, the insured will be compensated for the debris removal expenses. 

Next is reasonable repairs, which is for immediate measures taken at the time of a loss to prevent further damage. For example tarping a hole in the roof, or boarding up a window. If repairs to other damaged property are involved, coverage applies to that property only if it was damaged by a covered peril. This does not increase the coverage limits.

Coverage is available for up to $300 of expenses for certain services in order to recover data from a damaged hard drive for certain equipment. Coverage is provided to diagnose, recover and/or restore loss to personal electronic data stored in the insured's personal computer, tablet, phone, SD card or external drive if loss is due to data corruption, deletion or virus, and occurred during the policy period. No deductible applies, and this is additional insurance. 

Bed bug remediation is coverage that has not been seen in the standard policies until now. If a licensed pest control, maintenance, remediation or extermination agent or company that meets all state standards, licenses, and regulations determines that an infestation of bed bugs exists in the "residence premises" during the policy period, up to $500 will be provided to treat the infestation. 

Coverage treatments include spraying of pesticides, fumigation, or heat treatments. Again, the treatment must be by a licensed pest control, maintenance, remediation or extermination professional who meets all state licensing regulations and ordinances. Not covered is the expense to determine if there is an infestation, or replace property damaged or contaminated by the infestation or the treatment itself. No deductible applies, and this is additional insurance. 

When the property is endangered by a covered peril and the insured has the opportunity to move property to keep it safe from that peril, the property will be covered at that other location for no more than thirty days while removed. This does not increase the coverage limit. For example, an insured lives in an area where wildfires are common and has the chance to relocate his property before being evacuated before an oncoming wildfire reaches his property. His property will be covered by the policy while in that secondary location for up to thirty days. Note that while in that secondary location the property is covered for damage by any cause, even an excluded peril. If the property is flooded at that secondary location, even though flood is excluded, the property would be covered under this circumstance. 

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