Dwelling Policy (DP)Question 316 of 531
A homeowner rents her detached backyard cottage to a student who is not a tenant of the main house. Fire destroys the cottage. Other structures coverage pays:
a.the loss, less the rent collected
b.nothing; it is rented to another
c.the loss, as another structure
d.half, since it houses a tenant
Explanation
Other structures coverage does not apply to a structure rented or held for rental to anyone who is not a tenant of the described dwelling, unless the structure is used only as a private garage. A cottage let to an unrelated student is exactly that excluded use, so the fire loss falls outside the coverage. Rent collected is not netted against a building loss.
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