Property & Casualty Insurance Exam (National Portion)Property InsuranceMedium
A homeowner has a standard HO-3 policy. During a severe thunderstorm, a large tree falls on their detached garage, causing $15,000 in damage. The cost to remove the fallen tree from the garage is $1,000. Under which coverage part would the tree removal cost typically be covered?
- ACoverage A - Dwelling
- BAdditional Coverages
- CCoverage C - Personal Property
- DCoverage B - Other Structures
Show answer & explanationAnswer & explanation
Correct answer: B. Additional Coverages
Tree removal is typically covered under the 'Additional Coverages' section of a homeowners policy, not directly under the main property coverages (A, B, C). This specific additional coverage usually applies when a tree falls due to a covered peril and damages a covered structure or blocks a driveway/ramp.
Why the other options are wrong
- A. Coverage A is for the main dwelling, not typically for tree removal unless it's part of the dwelling repair, but usually falls under Additional Coverages.
- C. Coverage C is for personal property, not structures or tree removal.
- D. Coverage B is for the detached garage itself, not specifically the cost of removing the tree from it.
Tree Removal (Homeowners Additional Coverage)
An additional coverage in homeowners policies that pays for the reasonable costs of removing trees, shrubs, or plants from the residence premises if they are damaged by a covered peril and fall onto a covered structure, block a driveway, or fall onto a disabled person's ramp.
- Applies when damage is caused by a covered peril.
- Covers removal from covered structures or driveways/ramps.
- Subject to specific sub-limits per tree and overall.
Memory trick: Main A B C D, Plus Additions.