When can the Coverage Extensions apply for Building and Personal Property Coverage Form?

The Coverage Extensions for the Building and Personal Property Coverage Form apply when the policy is subject to 80% or more coinsurance. This requirement is significant because it encourages policyholders to insure their property for a value that is close to its actual value, thereby ensuring that they are adequately covered in the event of a loss.

When a policyholder meets the 80% coinsurance requirement, they benefit from additional coverage options that may not be available if their insurance is under the threshold. These coverage extensions can provide extra protection for certain types of property or additional expenses that may arise during a loss event.

Concerning the other options, simply renewing a policy annually does not automatically grant access to coverage extensions; the level of coverage and policy conditions are what matter. Adding endorsements may enhance coverage but does not inherently lead to invoking coverage extensions tied to coinsurance. Filing a claim triggers the claims process but does not dictate when coverage extensions become applicable. It is the adherence to the coinsurance clause that creates eligibility for additional benefits offered under the Coverage Extensions.