Current through Register Vol. 41, No. 3, September 23, 2024
A. Insurers shall provide coverage to the
dwelling on the residence premises including fixtures.
1. Insurers shall also provide coverage for
materials and supplies while located on the residence premises and intended for
use in construction, alteration, or repair of the dwelling or other
structures.
2. For a dwelling that
is a condominium unit, insurers shall provide a limit of liability of at least
$5,000 for the dwelling and fixtures that are the responsibility of the
condominium unit owner.
B. Insurers shall provide coverage for other
structures and the fixtures of other structures on the residence premises.
1. Insurers shall provide a limit of
liability of at least 10% of the dwelling limit of liability.
2. Insurers may exclude coverage for other
structures that are used for business or rented or held for rental unless the
structure is (i) rented to roomers, boarders, or tenants of the dwelling or
(ii) rented for use solely as a private garage.
3. For condominium units, insurers shall
provide coverage for other structures and fixtures of other structures that are
the responsibility of the condominium unit owner.
C. Insurers shall provide coverage for
household and personal property owned or used by an insured while it is
anywhere in the world.
1. Insurers shall
provide a limit of liability for household and personal property coverage that
is at least 50% of the dwelling limit of liability. For condominium units, the
limit of liability for household and personal property shall be determined by
the insured and the insurer.
2. At
the request of the named insured at the time of loss, insurers shall provide
coverage for household and personal property owned by a:
a. Guest while in a residence occupied by an
insured;
b. Residence employee
while the property is in a residence occupied by an insured; and
c. Residence employee while the residence
employee is engaged in the service of an insured and the property is in the
physical custody of the residence employee.
3. Insurers shall provide coverage for the
insured's property (i) on the residence premises during an occasional rental;
or (ii) on the part of the residence premises occupied by roomers, boarders, or
tenants.
4. Insurers shall provide
coverage for household and personal property while it is being moved to the
insured's new principal residence within the United States. Insurers shall
provide coverage for property while it is being moved for 30 days from the date
that moving the property begins. The household and personal property limit of
liability applies to property being moved to another location. If the move
began during the policy term, coverage may not be limited by the expiration of
the policy.
5. Insurers shall
provide coverage for household and personal property while it is usually
located away from the residence premises. Insurers shall provide a limit of
liability for this coverage that is at least 10% of the limit of liability
specified for household and personal property, but not less than
$1,000.
6. Insurers shall provide
coverage for the following types of household and personal property at limits
of at least the following:
a. $500 total per
loss on cemetery property on or off the residence premises, including
monuments, headstones, grave markers, and urns.
b. $100 total per loss on coin collections,
medals, gold, platinum, and silver, provided, goldware and gold-plated ware
shall not be deemed to be gold and silverware and silver-plated ware shall not
be deemed to be silver.
c. $500
total per loss on passports, tickets, or stamp collections.
d. $1,500 total per loss for theft of
jewelry, precious and semi-precious stones, and furs, and articles containing
fur that represent its principal value; if open causes of loss are provided,
insurers may also apply this limit to misplacing or losing this
property.
e. $500 total per loss
for theft of guns and related accessories; if open causes of loss are provided,
insurers may also apply this limit to misplacing or losing this
property.
f. $1,000 total per loss
on watercraft, trailers used with watercraft, and watercraft furnishings,
equipment, and motors. This limit does not apply to rowboats or
canoes.
g. $500 on trailers,
semi-trailers, and campers not otherwise covered in this chapter.
D. Insurers shall
provide coverage for the expenses incurred for the removal of debris of covered
property damaged by a covered cause of loss and the expense for the removal of
fallen trees that damage covered property.
1.
Expenses for debris removal are included within the limit of liability
applicable to the damaged property, except as provided in subdivision 2 of this
subsection.
2. When the amount
payable for the damage to the property plus the expense of debris removal
exceeds the limit of liability for the damaged property, insurers shall provide
an additional 5.0% of the limit of liability applicable to the damaged covered
property for debris removal expenses.
3. Insurers may not apply depreciation to
debris removal expenses.
E. Insurers shall provide coverage for
contractual fire department service charges and volunteer fire department
service charges as follows:
1. Contractual
fire department service charges where a fire department is called to save or
protect insured property from a covered cause of loss. Insurers may limit this
coverage to a residence premises not located within the limits of a city,
municipality, or fire protection district furnishing fire department
services.
2. Fire department
service charges made by volunteer fire departments pursuant to § 38.2-2130
of the Code of Virginia.
3.
Insurers shall provide at least $250 of coverage for each type of fire
department service charges.
4.
Insurers may not apply a deductible or depreciation to the coverages in
subdivisions 1 and 2 of this subsection.
F. Insurers shall offer ordinance or law
coverage, subject to the exclusions or limitations within this chapter,
pursuant to § 38.2-2124 of the Code of Virginia at the dwelling limit of
liability within the policy or as an endorsement. This limit of liability is in
addition to the limit of liability applicable to the dwelling. Insurers may
make other limits of liability available for insureds to purchase. Insurers may
not apply depreciation to this coverage. When ordinance or law coverage is
provided within the policy or as an endorsement, subdivision C 1 c of
14VAC5-342-60 does not apply.
G.
Insurers shall offer coverage for water that backs up through sewers or drains,
subject to the exclusions or limitations within this chapter, pursuant to
§ 38.2-2120 of the Code of Virginia at the dwelling limit of liability
within the policy or as an endorsement. This limit of liability is in addition
to the limit of liability applicable to the dwelling. Insurers may make other
limits of liability available for insureds to purchase. Insurers may not apply
depreciation to this coverage. When coverage for water that backs up through
sewers or drains is provided within the policy or as an endorsement,
subdivision C 1 a (2) of 14VAC5-342-60 does not apply.
H. Insurers shall provide coverage of at
least 20% of the dwelling limit of liability for the increase in necessary
living expenses when the dwelling is uninhabitable due to a covered cause of
loss. Insurers shall provide coverage of at least 20% of the household and
personal property limit of liability for condominium units.
1. Insurers shall provide this coverage for
the time reasonably required to return the dwelling to a habitable condition or
for the insured's household to become settled in any permanent
quarters.
2. Insurers shall provide
additional living expense coverage for at least two weeks while a civil
authority limits access to the residence premises as a result of damage to
neighboring premises by a covered cause of loss.
3. Insurers may exclude living expenses that
do not continue.
4. This coverage
is not limited by the expiration date of the policy.
5. Insurers may not apply a deductible to
this coverage.
I.
Insurers shall provide coverage of at least 20% of the dwelling limit of
liability for the fair rental value of any part of the dwelling or other
structure. Insurers shall provide at least 20% of the household and personal
property limit of liability for condominium units.
1. Insurers shall provide this coverage for
the time reasonably required to restore the dwelling or other structures to a
tenantable condition following damage caused by a covered cause of
loss.
2. Insurers shall provide
fair rental value coverage for at least two weeks while a civil authority
limits access to the residence premises as a result of damage to neighboring
premises by a covered cause of loss.
3. Insurers may exclude expenses that do not
continue.
4. Insurers may exclude
coverage for loss or expense due to cancellation of a lease or
agreement.
5. This coverage is not
limited by the expiration date of the policy.
6. Insurers may not apply a deductible to
this coverage.
J.
Insurers shall provide coverage for damage to trees, shrubs, plants, or lawns
caused by fire, lightning, explosion, riot, civil commotion, vandalism,
malicious mischief, theft, aircraft, or vehicles not owned or operated by a
resident of the residence premises.
1.
Insurers shall provide a limit of liability for this coverage of at least 5.0%
of the dwelling limit of liability.
2. Insurers may limit the amount of coverage
to no more than $500 for each tree, shrub, or plant on the premises. The limit
of coverage includes debris removal coverage when the tree, plant, or shrub
does not cause damage to covered property.
K. Insurers shall provide coverage for loss
or damage to property while removed or being removed from the residence
premises because the property is endangered by a covered cause of loss.
1. Coverage is provided for damage from any
cause subject to the exclusions and limitations permitted in this
chapter.
2. Insurers shall provide
this coverage for at least 30 days for each removal.
3. This coverage is not limited by the
expiration date of the policy.
4.
This coverage does not increase the limit of liability that applies to the
damaged covered property.
L. Insurers shall provide coverage for the
cost of making reasonable repairs to protect covered property from further
damage when the repairs are directly attributable to damage caused by a covered
cause of loss. The repairs are included as part of the amount of the
loss.
M. Insurers shall pay the
cost incurred to tear out and replace the part of the dwelling or other
structure necessary to gain access to the system or appliance from which the
water or steam escaped if a loss to the dwelling or other structures is caused
by water or steam escaping from a system or appliance. Insurers may exclude
loss to the system or appliance from which the water or steam escapes. Insurers
may not apply depreciation to this coverage.
N. Insurers shall provide coverage for direct
physical loss to the dwelling, other structures, and household and personal
property involving collapse of a dwelling or other structure or any part of a
dwelling or other structure:
1. Caused by one
or more of the following:
a. The causes of
loss in subsection C of 14VAC5-342-50;
b. Hidden decay;
c. Hidden insect or vermin damage;
d. Weight of contents, equipment, animals, or
people;
e. Weight of rain that
collects on a roof; or
f. Use of
defective materials or methods in construction, remodeling, or renovation if
the collapse occurs during the construction, remodeling, or
renovation.
2. Loss to an
awning, fence, patio, pavement, swimming pool, underground pipe, flue, drain,
cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf, or
dock is not included under subdivisions 1 b through 1 f of this subsection
unless the loss is a direct result of the collapse of a building.
3. Collapse does not include settling,
cracking, shrinking, bulging, or expansion. A building that is in danger of
falling down or caving in is not in a state of collapse.
4. This coverage does not increase the limit
of liability applicable to the damaged covered property.
Statutory Authority: §§ 12.1-13, 38.2-223, and
38.2-2108 of the Code of Virginia.
