Homeowners Policy (HO)Question 337 of 474
A fire department bills an insured $900 for responding to a fire at the covered dwelling. Under the fire department service charge additional coverage, the policy pays:
a.$500, with no deductible
b.$450, half of the charge
c.$900, less the deductible
d.$0, as this is excluded
Explanation
The fire department service charge additional coverage pays up to $500 for a charge the insured becomes liable for when a department is called to save covered property, and no deductible applies to it. A $900 bill therefore brings $500 rather than the full amount. The answer that subtracts a deductible misreads how this additional coverage is written.
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