Bonsai Tree Hobby Coverage

[Misty]

Any suggestions for coverage for a substantial Bonsai collection? I keep running into a snag of the trees being art, but also being alive. Some of the trees are worth 10,000 or more each. Its not a commercial operation, just a hobby. Any input or advice? Thanks

 

[Todd King]

Lloyd's of London maybe?

 

[adjusterjack]

I keep running into a snag of the trees being art,

.

From a homeowners insurance standpoint it is a tree, shrub or plant, subject to the limitation in the homeowner's policy:

Trees, Shrubs And Other Plants
We cover trees, shrubs, plants or lawns, on the "residence premises", for loss caused by the following Perils Insured Against:
a. Fire or Lightning;
b. Explosion;
c. Riot or Civil Commotion;
d. Aircraft;
e. Vehicles not owned or operated by a resident of the "residence premises";
f. Vandalism or Malicious Mischief; or
g. Theft.
We will pay up to 5% of the limit of liability that applies to the dwelling for all trees, shrubs, plants or lawns. No more than $500 of this limit will be paid for any one tree, shrub or plant. We do not cover property grown for "business" purposes.
This coverage is additional insurance.

You are likely to need a Scheduled Property Floater where each bonsai tree is specifically identified, photographed, appraised by a professional appraiser, and scheduled on the policy.

You can probably get that through a surplus lines broker.

 

[Misty]

I thought that too about them falling under landscape coverage and that is what I think the current agent thinks they are insured under but I talked to underwriters at a few companies and the consensus is that applies to exterior plants and shrubs. Once inside the house they become no more than houseplants and have zero value. The SF agent insists they are covered under art and personal belongings. I am curious how he got that done.

 

[adjusterjack]

I thought that too about them falling under landscape coverage and that is what I think the current agent thinks they are insured unde

The word "landscape" does not appear anywhere in the homeowner policy so the current agent is wrong.

but I talked to underwriters at a few companies and the consensus is that applies to exterior plants and shrubs.

They are wrong, too. Note that I quoted the exact wording of my policy sample and the coverage is for

trees, shrubs, plants or lawns, on the "residence premises",

The policy has a section with definitions:

"Residence premises" means:
a. The one family dwelling where you reside;
b. The two, three or four family dwelling where you reside in at least one of the family units; or
c. That part of any other building where you reside;
and which is shown as the "residence premises" in the Declarations.
"Residence premises" also includes other structures and grounds at that location.

.

Whatever plants, trees, and shrubs are inside the house are also "on the residence premises."

Once inside the house they become no more than houseplants and have zero value.

True, they are houseplants, but they are covered for up to $500 each subject to the 5% of the dwelling value limit. Of course, an insured would have to document value to get $500 for a houseplant.

The SF agent insists they are covered under art and personal belongings. I am curious how he got that done.

I spent two years working as a property claims adjuster for S F and learned quick enough that SF agents barely know the names of the policies they sell and have little or no clue as to what they cover.



Any time you have a coverage question it's best to ask the company's claim rep. He or she is the one that reads the policy every day and makes the coverage decisions. Agents and underwriters don't.