SECTION 20 - MANDATORY COVERAGES
RULE 20.1 - MANDATORY COVERAGES
The following explanations are intended to give a brief description of the basic coverages provided by the policy. These descriptions should not be construed as modifying or extending any provisions or conditions of the policy.
The policy contains two sections, each with various coverages; Section I - Property Coverages and Section II - Liability Coverages.
Section I - Coverage A - Dwelling
The purpose of this coverage is to protect the insured in the event the dwelling on the insured premises is damaged. It includes coverage for structures attached to the dwelling. It also includes coverage for materials and supplies located on or next to the residence premises used to construct, alter or repair the dwelling or other structures on the premises. This coverage does not apply to the land, including the land on which the dwelling is located.
Section I - Coverage B - Other Structures
This coverage extends to other structures on the insured premises. The limit of liability for this coverage is 10% of the limit of liability that applies to Coverage A - Dwelling. This coverage may be increased (See Rule 35.1).
Section I - Coverage C - Landlord's Furnishings
The purpose of this coverage is to protect personal property, usually situated at the insured premises, that is owned by the insured and that is usual to the occupancy of the dwelling.
The limit of liability for landlord's furnishings is $5,000. This coverage may be increased (See Rule 35.2).
Section I - Coverage D - Loss of Rental Income
The purpose of this coverage is to reimburse the insured for actual loss of rental income while that part of the insured premises that is actually rented or leased to others is unfit to live in. This coverage is limited to the actual loss sustained but shall not exceed 20% of the Coverage A limit and shall not exceed 12 months from the date of the physical loss.
We will also pay actual loss of rental income if a civil authority prohibits the tenant from occupying the insured premises as a result of direct damage to neighboring property by a covered cause of loss. This coverage is limited to 2 weeks and shall not exceed $2,500. A $500 deductible will apply.
Section I - Other Coverages
The purpose of this coverage is to pay for expenses for removal of fallen trees after a loss; trees, shrubs and other plants due to fire or lightning, explosion, riot or civil commotion, aircraft, vehicles not owned or operated by a resident of the insured premises, vandalism or malicious mischief or theft; fire department service charge; removal of debris and volcanic ash; reasonable emergency measures to protect from further loss; property removed from the premises; fragments of broken glass and wildfire smoke.
Section II - Coverage E - Landlord's Liability
The purpose of this coverage is to protect the insured in the event a suit or claim by others is made for bodily injury or property damage covered by the policy. This coverage may be increased (See Rule 35.3).
Section II - Coverage F - Medical Payments to Others
This coverage provides payment of reasonable expenses actually incurred within 3 years from the date of accident for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. It protects residence employees and those who are not regular residents of the insured's household. This coverage may be increased (See Rule 35.4).
Section II - Additional Payments
The purpose of this coverage is to pay for expenses for claims and first aid to others.
