Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Property InsuranceMedium
A client has a Dwelling Policy (DP-2 Broad Form) covering their rental property. A severe windstorm causes a tree to fall, damaging the roof and a detached garage. The policy has a Coverage A limit of $200,000, a Coverage B limit of $20,000, and a Coverage C limit of $10,000. Assuming the tree falls from a neighboring property and the policy does not have any additional endorsements, which of the following statements is true regarding coverage for the tree removal?
- AThe policy will cover up to $500 per tree for removal if it damages a covered structure.
- BThe policy will cover the full cost of tree removal, up to the Coverage B limit, regardless of where the tree originated.
- CThe policy will not cover tree removal costs if the tree fell from a neighboring property.
- DTree removal is covered only if the tree was diseased and posed an imminent threat before the storm.
Show answer & explanationAnswer & explanation
Correct answer: A. The policy will cover up to $500 per tree for removal if it damages a covered structure.
Dwelling policies typically provide limited coverage for tree removal, specifically when the tree damages a covered structure. The standard limit is $500 per tree.
Why the other options are wrong
- B. This is incorrect; there is a specific sub-limit for tree removal, not the full Coverage B limit.
- C. This is incorrect; coverage can apply even if the tree originates from a neighboring property, provided it damages a covered structure.
- D. This is incorrect; the cause of the tree falling due to a covered peril (windstorm) is the trigger, not its prior condition.
DP-2 Tree Removal Coverage
Dwelling Policy (DP-2 Broad Form) provides limited coverage for tree removal costs when a tree damages a covered structure due to a covered peril.
- Typically $500 per tree sub-limit.
- Applies if the tree damages a dwelling, other structure, or blocks a driveway/ramp for disabled.
- Covered perils include windstorm, hail, weight of ice/snow/sleet, or non-owned vehicle impact.
Memory trick: Tree's fall, structures hit, five hundred bucks to quit.