Pool Cover Insurance Coverage via Summit Business Systems

Question:

We write a standard HO-3 on a client with a swimming pool. His policy also includes replacement cost coverage for personal property. Recently the pool and the pool cover suffered damage in a windstorm. We understand that the pool is not subject to replacement cost adjustment, because it is a “structure that is not a building.” However, we believe that the pool cover should be covered for replacement cost under the terms of the personal property replacement cost endorsement.

The adjuster maintains that the pool cover is part of the pool and, therefore, not eligible for replacement cost coverage. We disagree and would like your opinion.

North Dakota Subscriber

Answer:

There are two ways to look at the pool cover. One is as personal property, and the other is as outdoor equipment. In either case, by purchasing the HO 04 90 10 00 the insured got replacement cost coverage on both personal property and outdoor equipment. Granted, the swimming pool itself is not subject to replacement cost in case of a loss, because it is a structure that is not a building. However, the pool cover is not a structure. It can be picked up and moved. Since it qualifies as personal property or as outdoor equipment, the loss should be paid on a replacement cost basis.