Are there any insurance professionals here?

[Synergy]

A year ago I bought a property with an old mobile home on it. I do not currently live on the*property and never have.* Last summer I built a large shop with a room attached to it for a home gym (with toilet and shower). This summer I intend to build a house on the same property. I have removed the old mobile and requested that my umbrella policy include this shop/home gym. My question regards the wording of the policy they sent me. There are 4 things listed that the policy says are not covered:

A- Being used as a dwelling
B-Capable of being used as a dwelling
C-Used in whole or part for business
D-Rented or held for rental to any person not a tenant of the residence premises.

I'm Okay with A, C and D but I am uncomfortable with "B". It looks like something that was put in there to allow the insurance*company a way to weasel out of paying a claim if they were so inclined. It seems like any structure could be used as a dwelling. I voiced my concern with my local agent and I could tell that she thought I was being "difficult".* If there is an insurance professional here, can you tell me if this is standard stuff or am I right to be uncomfortable*with this wording?
I'm thinking about shopping for another independent insurance agent (In addition to the umbrella coverage I have multiple houses, motorcycles and cars with the same agency).
Thanks, RDW

 

[braumeister]

Around here, "capable of being used as a dwelling" would mean there is a kitchen. Sounds like you don't have that so it would be OK. But by all means check your local codes.

 

[mystang52]

Every insurance policy has a Definitions section. See how the policy defines "Dwelling." It may say something like must have a bathroom, kitchen etc. If something like that is in the policy definition, you're fine. Remember, legally the insurance company is bound by the terms of the insurance policy, too. So if they defined the word Dwelling they must abide by it.
I'm not a lawyer, but was in the insurance field for my entire career.

 

[Synergy]

This is the definition they supplied:

"Dwelling means the building on the residence premises used as your primary residence."

It's not much help for answering my question.

Thanks to both of you for the response.

RDW

 

[RetireeRobert]

You are uncomfortable with your agent essentially blowing you off, as well as the weasel wording of your policy.

I would shop for a new agent AND a new policy!

 

[Jerry1]

This is the definition they supplied:

"Dwelling means the building on the residence premises used as your primary residence."

It's not much help for answering my question.

Thanks to both of you for the response.

RDW

I don't know. It seems pretty useful to me. From your post, I gather you have a primary residence somewhere other than this piece of land. Therefore, the shop is not a dwelling. As for B. - Can it be used as a dwelling? Seems like it would be impossible to use it as a dwelling since dwelling is your primary residence and you already have one of those.

If you were to move out of your primary residence, then maybe an argument could be made, but until then, I'd argue that it is impossible for the shop to be your dwelling, i.e. - your primary residence.

 

[jdunc31]

Synergy---where are you located at? Also matters the form # on the endorsement that you have copied if it is manuscripted by the carrier or if it is a standard ISO form.

If not comfortable sharing this info, please DM me--this is my field, would need to know the bottom left or right "code" that is on the page, name of carrier and state you are in and I could track down some answers for you....

You also could need what is called a "Builders Risk Policy" if you are under construction and that would cover any holes or exposures you might have between your primary coverage and your umbrella coverage along with the newly built structure....

JD

 

[mystang52]

This is the definition they supplied:

"Dwelling means the building on the residence premises used as your primary residence."

RDW

If not comfortable sharing this info, please DM me--this is my field, would need to know the bottom left or right "code" that is on the page, name of carrier and state you are in and I could track down some answers for you....

JD

OP: I'll defer to JDUNC, but FWIW I read the policy definition of dwelling as pretty clear-cut that this structure is NOT a dwelling, so you'd be covered.

 

[Stormy Kromer]

I see that this form is for your property coverage, not your umbrella liability policy.


I agree with others that this is not a Dwelling or capable of being used as a Dwelling since there are not sleeping quarters or cooking facilities. Do you have any coverage on the contents ? Does your umbrella extend to this location ?


When you break ground for your new home you should be able to get a Homeowners Policy for its completed Replacement Value when you start. Your agent should be able to complete a Replacement Cost Estimate for you if you provide them the information. Add this residence to your Umbrella Liability policy at the same time. You may want to consider adding theft of building materials coverage during the construction and make sure to get a certificate of insurance from all of your contractors. Do not rely in the contractors to insure property once it arrives on your premises, it's yours.

 

[Synergy]

Thanks everyone for your input. I think I'll shop around (even if the next company has the same exclusion).


RDW

 

[skipro33]

Around here, "capable of being used as a dwelling" would mean there is a kitchen. Sounds like you don't have that so it would be OK. But by all means check your local codes.

Around here, it means the property taxes are paid for human occupation. In order to do that, the building must meet certain building codes for human occupation. If it does those things, it doesn't matter if I only used it for storage, I'm gonna be charged the taxes based on the capability of the property.
So, what are you paying taxes on for the building? If allowed to house a person for living, I think B on your list is met.