What is the coverage limit for trees, shrubs, and plants under DP-2 and DP-3?

Under the DP-2 (Broad Form) and DP-3 (Special Form) policies, the coverage limit for trees, shrubs, and plants is indeed set at 5% of the Coverage A limit. This provision is included to help insured homeowners cover landscaping losses caused by specific perils such as fire, lightning, explosion, or vandalism, among others.

The Coverage A limit pertains to the dwelling itself, which means that the coverage for trees, shrubs, and plants is essentially a subset designed to protect a limited portion of the overall coverage. This is significant for policyholders to understand as they assess their total liability in regards to the structure and its surroundings.

In practical terms, if a home is insured for $200,000 under Coverage A, the limit for trees, shrubs, and plants would be $10,000 (5% of $200,000). This coverage ensures that homeowners have some financial protection for landscaping elements that can be quite valuable, while also maintaining straightforward and concise limits that are manageable for insurers.

Understanding this coverage limit helps homeowners make informed decisions about additional endorsements or riders they might need to adequately insure all aspects of their property.