When Does the Continuous Seepage Exclusion Start in a Homeowners Policy?
A client filed a homeowners claim where the condensation line in the furnace and air conditioning unit had been leaking over a long period of time. It damaged the floor and rusted and corroded the bottom of the unit. The insurance company has denied the claim because of the time period that the leak occurred.
However, in SECTION I – PERILS INSURED AGAINST, the homeowners policy says:
“Unless the loss is otherwise excluded, we cover loss to property covered under Coverage A or B resulting from an accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the ‘residence premises’. This includes the cost to tear out and replace any part of a building, or other structure, on the “residence premises”, but only when necessary to repair the system or appliance. However, such tear out and replacement coverage only applies to other structures if the water or steam causes actual damage to a building on the ‘residence premises’. We do not cover loss to the system or appliance from which this water or steam escaped.”
Q: Since this part of the policy is silent regarding the continuous and repeated leakage language, does this give coverage to help pay for the cost to tear out and replace part of the house that was damaged by water?
Response 1: In the same section of the policy, it says:
2. We do not insure, however, for loss:
c. Caused by:
(5) Continuous or repeated seepage or leakage of water, steam or moisture, or presence or condensation of humidity, moisture or vapor, over a period of weeks, months or years from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or a household appliance that results in deterioration or rust.
I feel that explanation of continuous and repeated seepage takes precedence in your scenario. I agree with the adjuster in this instance.
Response 2: Since gradual water damage is otherwise excluded, the first phrase of the paragraph you cite, the exception doesn’t give back coverage. Not that it’s much consolation, but almost all homeowners forms now exclude water damage from leaks that occur over a period of weeks or longer.
Response 3: According to your description of the incident, it is otherwise excluded by c.(5).
What does the exception mean? It’s a lawyer question, of course, but it seems to allow coverage for smog, rust or other corrosion, or dry rot resulting from an accidental discharge from a heating system—but only if no other exclusion applies.
It’s hard to imagine, but suppose there was a sudden surge in water pressure from the supply system and it pushed an amount of water into the compartment under the furnace—a single instance in a short period of time. The water lays there undiscovered and causes corrosion of the furnace casing and rots the floor beneath. This is not reached by exclusion c.(5) because the discharge was not continuous or repeated.
Pretty slim, I know, but it reflects an obvious attempt by the insurer to exclude damage such as rust, rot, or corrosion.
Response 4: A helpful article from Merlin Law Group explains a court case in Florida dealing with the continuous seepage exclusion. The court ruled that damage that occurred in the first 13 days was covered.
I corresponded with an agent recently on a very similar claim. The crux of the matter under many forms is, “When did the damage take place?” That’s important because of this excerpt from the case:
“In light of the general principle that insurance policy provisions susceptible to more than one interpretation should be construed liberally in favor of the insured and strictly against an insurer, and that exclusionary clauses should be read even more narrowly, we hold that an insurance policy excluding losses caused by constant or repeated leakage or seepage over a period of fourteen days or more does not unambiguously exclude losses caused by leakage or seepage over a period of thirteen days or less.”
If it is possible to identify damage that took place in the first 13 days, you have an argument for coverage for that damage. C.(5) excludes water damage “over a course of weeks, months, or years whether hidden or not.” Since “weeks” is plural, the shortest time frame that could be used to exclude damage is 14 days.
The Florida case also cites several court cases stating that any ambiguity is resolved in the favor of the insured, which is solid case law around the country. If there is a way to identify when the damage took place, you have an argument for coverage.
Likewise, if the insurer can’t state with certainty when the damage occurred then ambiguity may come into play in the favor of the insured. It’s probably tough to do this, but that’s my best shot for coverage.
Underinsured Properties
Homeowners and Business Properties Risk Being Underinsured, Says APCIA Survey
Only 30% of insured homeowners have purchased more insurance or increased coverage limits to compensate for rising building costs, the APCIA survey found.
BY WILL JONES
A majority of insured homeowners have not taken important steps to ensure their insurance coverage is keeping pace with rising inflation and increased building costs, which could leave policyholders underinsured if catastrophe strikes, according to a new survey from the American Property Casualty Insurance Association (APCIA), conducted online by The Harris Poll.
Meanwhile, Selective Insurance announced the results of a January 2022 study which found that only 43% of U.S. business owners have increased their business insurance policy limits to account for inflation.
Only 30% of insured homeowners have purchased more insurance or increased coverage limits to compensate for rising building costs, the APCIA survey found. Additionally, among insured homeowners who completed renovations or remodels during the pandemic, less than half (40%) have updated their home insurance to account for those changes.
“It is critical that homeowners make sure they have the right amount and right types of coverage during this period of significant inflation, but unfortunately our survey shows that many individuals may not be properly prepared,” said Karen Collins, assistant vice president of personal lines at APCIA. “Our survey found that about two thirds of homeowners may be without key additional coverages, such as annual inflation adjustment, extended replacement cost, and building code/ordinance coverage, that can better protect them in these challenging market conditions.”
“Homeowners should be aware that rebuilding costs are increasing, and they should take steps now to update their coverage and mitigate against potential damage,” Collins added.
The survey also uncovered a significant knowledge gap over whether insurance covers the cost to rebuild or the market value of the home, with 64% of insured homeowners indicating they are not sure or believe their homeowners coverage limits are based on the real estate market value of their home rather than the rebuilding cost.
Further, as climate change is causing more severe and frequent natural catastrophes—and hurricane season approaches—consumers are unsure or unaware if they have the right coverages in place to insure their homes against the realities of inflation and rising building costs.
As many as 63% of insured homeowners say they have not added or are not sure if they have added annual inflation adjustment coverage, 67% have not added or are not sure if they have added extended replacement cost coverage to their policy, and 69% have not added or are not sure if they have added ordinance coverage for new energy or building code upgrades.
“This should be a wake-up call to homeowners to pick up the phone and call their insurer or agent to discuss their insurance policy and make sure they have the coverages they need,” Collins noted. “Too often people overestimate their preparedness for natural disasters and other emergencies, and this can lead to gaps in preparedness and insurance coverage.”
The Selective study found that nearly 2 in 5 U.S. business owners do not fully understand the scope of their insurance coverage. As a result, they likely do not know how to assess on their own if they are appropriately protected. Additionally, nearly 1 in 4 business owners (22%) have not purchased insurance for their business.
“With inflation’s impact on the economy, it’s imperative that business owners work with their agents to evaluate the adequacy of their insurance coverage and limits,” said Brenda Hall, executive vice president, commercial lines chief operating officer, Selective.
Is construction site theft getting worse?
Building boom and supply scarcity has caused theft to become ‘progressively worse and more brazen’
At the end of a workday in March, on a construction site in Salt Lake County, Mason Harvey, a project manager with Okland Construction, was locking up for the evening when he noticed something out of place.
Two men at the opposite end of the job site were handling materials after hours and not wearing mandatory reflective gear and hardhats.
But as he approached he quickly realized they were violating more than company policy: The men, faces hidden behind black ski masks, were rapidly loading materials into the bed of a pickup.
“You see ski masks in action movies, but here when you only see someone’s eyes and mouth you know it’s a bad situation,” Harvey said. “I wasn’t sure if they were armed or if they might be a threat to me, so I hurried back to the office and called 911.”
Five minutes later police arrived, but the bandits had already peeled away.
The thieves made off with about $10,000worth of thermoplastic polyolefin (commonly called TPO), a high-density roofing material and critical construction input — which, like many building materials, is in slim supply.
The scarcity of TPO and other construction essentials — like copper, aluminum and lumber — has led to price spikes that heighten incentives for thieves, and it’s causing bad actors to become more audacious, according to half a dozen Utah contractors interviewed for this story.
“I’m surprised at what people do to get something like roofing membrane. I know it’s hard to come by, but the fact that individuals will go to the measures of taking off license plates, wearing ski masks and dark clothing, and risk coming onto a busy job site like ours where we have over 100 employees working every day to get a few rolls of TPO — that’s surprising,” said Harvey.
Though Harvey described the moment as “surreal,” the phenomenon itself — construction site theft — is far from unusual. In fact, the March incident was only the latest in a string of thefts at Okland sites, which this year alone have seen over $100,000 worth of material stolen from its projects.
“When material gets stolen off our site, it increases our procurement costs and it especially affects our schedules. Our employees aren’t able to do their work and it makes it hard to do a job within a time frame. It has a trickle down effect on our whole team,” said Austin Hunsaker, risk and safety manager with Okland Construction.
‘Passed on to the consumer’
The losses don’t impact builders alone.
Stolen tools and materials have contributed to a rising cost in development — creating project delays, pushing up premiums for risk insurance and increasing outlays for site security — all of which gets passed on to the consumer.
“It’s just cause and effect. As theft rises, insurance claims rise, and insurance premiums will rise correspondingly. This happened a lot in the post-2008, 2009 downturn of the economy, and we’re experiencing it again right now,” said Mark Hunter, a builders risk insurance broker with Summit Risk Management and Insurance.
“At the end of the day, the consumer is the party who suffers because insurance companies and construction companies have to pass along those costs,” Hunter said.
While it is a systemic issue, there is yet to be a systematic or concerted plan to address it.
Lack of leads
In Salt Lake City, construction site theft is pursued by the property crimes unit of the Salt Lake City Police Department. However, successful prosecution in construction site property crimes are few and far between, as the incidents rarely produce quality leads, and the unit’s detectives — a grand total of three — are up to their elbows in cases.
“Our property crimes unit has the least amount of detectives and the highest queue of cases. People care more about crimes against a person, like homicide, sexual crimes and robbery,” said detective Marie Stewart, public information officer with Salt Lake City police.
Stewart also explained that internal resources aside, the bigger problem is that actionable evidence is exceedingly uncommon with construction site theft. Fingerprints or DNA, she says, “a defense attorney would destroy in court” due to the easy accessibility and high finger print volumes on construction sites, and video footage doesn’t often lead to identification.
“It comes down to leads, weare going to focus on cases that have leads, big or small. A lot of (victims) don’t have serial numbers on their equipment, so even if their power tool is at a pawn shop we can’t prove it’s theirs. If there is no video and no serial number than there is no way to follow up.”
‘Progressively worse and more brazen’
With a building boom along the Wasatch Front and demand for materials heightening by the day, some worry the problem is likely to get worse.
Jason Robichaud, of United Contractors, says he’s seen site theft in recent years become more sophisticated and prevalent.
“It is a systemic problem in our industry, and anybody in general contracting you speak with right now will say that they’ve been experiencing theft,” Robichaud said.
“In the past it was a lot of smaller, one off crimes where people break in to take copper wire and pocket any tools left out. But we’re seeing that it’s gotten more sophisticated. They’ll enter the site and cut the hinges off the Connex trailers so the doors completely fall off, then back up with multiple vehicles and load as many things off as they can fit,” he said.
In 2021, Robichaud was managing a project in west Salt Lake City that saw the loss of over $100,000 worth of tools and materials stolen on a single night.
“We saw a big shift in 2019 when it got progressively worse and more brazen. It’s gotten to the point where (thieves) are cutting water lines to completely take out an entire commercial building plumbing system for the copper,” he said.
He says it’s not uncommon to find people on site wearing generic construction attire and pretending to be there for a shift when they are not actually employees, which leads him to believe they are casing the property.
As threats of theft have increased, Robichaud has taken on additional security measures. He says different types of jobs require different levels of security, and that later stages of a construction process are the most vulnerable.
He’s had limited success with 10-foot perimeter panel fencing and camera systems. However, at certain times even expensive security measures fail to dissuade criminals.
“We found that cameras don’t deter, even if the cameras are actively monitored with PA speakers. The folks who are burglarizing don’t care.”
The most effective security measure, he said, has been full-time manned security presence between the hours of 5 p.m. and 5 a.m., which United Contractors has had to employ at vulnerable stages of project development. Yet the additional $2,600 a week to hire manned security adds up quick, and on many of its long-term projects, which can last 18 months or more, it’s only feasible to have security for limited periods of a project.
“Developers really have two things in mind during the development phase, which is time and money. And so when theft happens we’ve got to make up the money with insurance claims, and then deal with the time lost which means overworking our employees,” he said.
Water Damage
Water Damage is One of the Most Common Insurance Losses
Outlined below are some major factors leading to water damage losses. These losses are potentially contributing to a rise in insurance premiums. Water damage has become the second most common type of insurance claim after wind and hail damage.1 Based on recent reported data from insurers, one in fifty insured property structures will submit a water-related incident each year. Top causes for water damage losses include appliance failures, burst pipes after power failure, plumbing leaks, and sewer back-up. The burst pipes and ensuing water damage after the winter storm that paralyzed Texas and parts of neighboring states in February 2021 resulted in over 500,000 claims.2
Reported historical figures since 2013 indicate commercial buildings are six times more likely to be damaged by water versus theft, and water damage is seven times more likely than fire.3 Industry data also highlighted an increase in the frequency rate of water damage losses.
A key concern for policyholders can be adequacy of coverage. Insurance policies may contain limitations, so it is important to review and understand coverage. Following the Texas winter storm many policyholders were unaware of limitations on plumbing-related water damage and freezing conditions. Some insurers also have modified policy language shifting more risk to policyholders requiring timely and proper repairs, routine maintenance, and extra precautions to prevent or minimize water damage losses.
What can you do?
- Closely evaluate policy terms and conditions
- Perform precautionary risk management to protect structures and BPP
- Wrap / insulate outdoor and indoor pipes in unheated areas
- Properly seal building cracks around water pipes where they enter structures
- Check areas requiring building insulation and repair / increase where needed
- Replace traditional hot water heaters every 10 years – (this is a major cause of water losses)
- Maintain heat at a minimum of 55 degrees during colder months
- Drain and winterize plumbing lines during the off season (seasonal risks)
- Install heat monitoring devices alerting a central station if the temperature in a building falls below 55 degrees
- Install an automatic leak detection or automatic water shut off system
- Utilize stainless steel braided hoses instead of rubber
- Switch to an Antifreeze Fire Sprinkler System
- Have a qualified plumbing contractor evaluate plumbing annually and repair as needed
- Provide detailed instructions for employees or tenants on what do if they see a water leak
- Require regular off season checks in each unit (Condominium Buildings)
Uninsured / Underinsured Motorist Insurance
January 20, 2022
What is uninsured motorist coverage?
Uninsured motorist coverage helps pay for your injuries or damage to your vehicle if you’re in an accident and the driver at fault doesn’t have car insurance.
What is underinsured motorist coverage?
If the driver at fault in an accident has insurance but it’s not enough to cover your medical bills or damage to your vehicle, underinsured motorist coverage can step in where the other insurance left off.
The difference between uninsured and underinsured motorist coverage
The fundamental difference between uninsured and underinsured motorist coverage is that uninsured covers you if you’re hit by a driver with absolutely no insurance, while underinsured covers you if the at-fault driver’s insurance cannot fully pay for your injuries or damage.
Types of uninsured and underinsured motorist coverage
Like your liability insurance policy, there are both bodily injury and property damage options for uninsured and underinsured coverage.
- Uninsured motorist bodily injury: If a driver without insurance hits you and you suffer an injury, this type of coverage helps pay for your medical bills, income loss, pain and suffering, or funeral expenses.
- Uninsured motorist property damage: If you’re involved in an accident in which the at-fault driver doesn’t have insurance, this helps cover the costs of damage to your vehicle. However, this coverage may not be available in all states.
- Underinsured motorist bodily injury: If a driver hits you and carries insufficient levels of coverage, this type of insurance helps cover your medical costs, income loss, pain and suffering, or funeral expenses that exceed the amount the other driver’s insurance will pay. This coverage may not be available in all states.
- Underinsured motorist property damage: If a driver with insufficient insurance crashes into you and your vehicle is damaged, this type of insurance helps cover the vehicle repair costs that exceed the at-fault driver’s insurance policy payout. Like uninsured motorist property damage, this coverage may not be available in all states.
Get a quick Dairyland quote. Protect yourself from uninsured and underinsured drivers.
State requirements for uninsured and underinsured motorist coverage
While uninsured and underinsured motorist coverages aren’t generally required, it’s a good idea to have both types of insurance. That way you won’t have to worry about paying for damage or medical expenses on your own if you’re in an accident where the at-fault driver doesn’t have any or enough insurance.
According to the Insurance Research Council, roughly 13 percent of motorists are uninsured, making uninsured and underinsured motorist coverages important to help further protect you from potential costs of an accident.
Uninsured and underinsured motorist coverage stacking
You may be able to “stack” your uninsured and underinsured motorist bodily injury coverage if you have more than one insured vehicle and live in a state that allows stacking. Contact your insurance provider for more details and to find out if stacking is available to you.
How does stacking work?
Let’s say you have three insured cars in your household and the limit your insurance will pay out for your uninsured or underinsured motorist coverage is $20,000 for each car. You can combine those limits in the event of an accident to increase your stacked limit to $60,000. If you’re hit by an uninsured motorist and your medical bills amount to $55,000, you can combine or “stack” the insurance limits for each car you own to help cover the cost of your medical bills.
Filing an uninsured or underinsured motorist claim
When you’re hit by an uninsured driver, the solution is easy—you file a claim with your auto insurance provider against your uninsured motorist policy.
The process can be a bit more confusing when you’re hit by a driver who has insurance, but just not enough. A good rule of thumb is to always report your injury to your insurance company and they can explain how your underinsured motorist coverage would apply.
Still have questions on uninsured or underinsured motorist coverage, or other types of insurance coverage such as comprehensive and collision? Don’t hesitate to reach out to Dairyland® to learn more about how these policies and other auto insurance coverages can benefit you.
Here are 5 facts about car insurance you should know
Searching for a new car insurance policy can be stressful, especially when you don’t have all the information you need. So, let’s take a look at five car insurance facts you should know about when you’re researching new plan options.
1. There are many factors that affect your auto insurance rate
There are various factors insurance companies use when determining how much you should pay for car insurance. Here are a few:
- Age: Young drivers typically pay more for vehicle insurance than experienced drivers. Younger drivers have less experience behind the wheel, so they are at a higher risk to be involved in incidents. Car insurance premiums may gradually drop between ages 25–30 and can be almost half of the original cost by age 30. But your insurance doesn’t automatically drop at age 25. And when you reach your 60s, car insurance rates may begin to rise again.
- Driving record: This is one of the biggest factors in determining how much you’ll pay for car insurance. If you have a history of being involved in accidents, getting speeding tickets, or committing other traffic violations, your insurance may be more expensive.
- Location: Where you live can also affect your car insurance cost. If you live in an area with frequent insurance claims, this could affect the cost of your insurance. If you live in a zip code with a higher vehicle theft or crime rate, your insurance premiums may cost more than someone who lives in a more rural area.
- Your car: The make, model, and year of your car can also affect how much it costs to insure. The technology used in today’s vehicles means it costs more to repair.
There are many more factors that can affect your rate, so make sure to talk with an agent to see what else you should know.
2. There are auto insurance discounts available to help you save
It’s important to be able to find a car insurance policy you can afford. So, there are often a variety of car insurance discounts offered, including:
- Multi-car discount
- Advanced quote discount
- Transfer discount
- Payment frequency discount
- Homeowners insurance discount
- Defensive driving discount
- Anti-theft discount
To learn more about these discounts, contact your local agent or visit Dairyland®.
3. Car insurance can cover towing and rental car costs
If you’re in a car accident or your car breaks down, insurance can provide collision coverage beyond simple damage to your car. Towing and labor coverage can cover you if your car needs to be towed to a service center or if you need roadside assistance to fill an empty gas tank or fix a flat tire.
If your car isn’t drivable, rental car insurance coverage can help you reserve a rental and help pay for the use of a rental car, up to the limits of your coverage.
4. In most cases, car insurance follows the car, not the driver
Standard auto insurance policies follow your car wherever it goes, no matter who’s driving. If you lend your car to your roommate to go to the grocery store and they get rear-ended in the parking lot, your insurance—not your roommate’s—would provide coverage.
Some states don’t require you to have a standard auto insurance policy. So, you may opt for a named driver policy instead, where the car insurance follows the driver. With a named driver policy, the insurance coverage only extends to people who live in the same household and are listed on the policy. If you have this type of liability coverage and your roommate gets rear-ended at the grocery store and isn’t listed on your policy, that will be an out-of-pocket cost for them.
5. Car insurance is required in 49 of 50 U.S. states
In every state except New Hampshire, If you own a car, you’ll be required to get car insurance before you can register your vehicle. While you may be required to have car insurance, each state is different, so make sure to check and see what you need to have to meet your state’s minimum requirements.
Incident at Texas Dow Chemical Plant Prompts Shelter Order
Emergency officials issued evacuation or shelter-in-place orders in the morning July 21 for some people in a Houston-area city because of a “chemical incident” at a plant in the area. The shelter-in-place order was lifted later in the day.
The order had been issued for parts of La Porte, a city about 25 miles (40 kilometers) southeast of Houston. La Porte Emergency Management said earlier that residents in the affected area should stay indoors, turn their air conditioning off and close windows.
Dow Chemical, which operates a plant in the area, said in a public alert message that a “release event” from a tank truck had occurred but did not specify what chemicals were involved.
Harris County Pollution Control said in a statement that a tank wagon over-pressurized, which caused a release of the chemical hydroxyethyl acrylate. The chemical can cause irritation of the nose and throat, the statement said.
An evacuation order remained in place for people within a half-mile (0.8 kilometer) of the plant, which is located in an industrial area.
Ultimate Car Seat Guide
Keeping a young passenger safe in your vehicle requires a high-quality car seat. Learning about the types of products available and their key parts will help you make the best decision. Find out more click here: Ultimate Car Seat Guide
4 Driving Mistakes to Watch Out For
February 05 2020
You’re driving to work when your favorite podcast suddenly stops playing. You know you shouldn’t look at your phone, but you hate sitting in silence during your commute. What do you do?
Do you glance around for cops, then tap around on your phone until the story starts up again? A lot of us do this — but it isn’t the safest choice.
Beyond breaking the bad habit of distracted driving, here are four more behind-the-wheel behaviors to leave behind.
1. Don’t rely too much on fancy technology. If we let ourselves become less engaged drivers because we’re expecting blind-spot notifications and attention assist to save us when we’re tired or preoccupied, we aren’t really any safer. Continue your same careful driving habits and let these innovations give you an extra boost.
2. Don’t assume other drivers are paying attention, well rested or sober. Learn to spot the signs of impairment: wandering out of their lane, swerving, erratic braking, inconsistent speed and getting too close to other cars or objects. Keep a safe distance from these potentially dangerous drivers.
3. Don’t let your insurance make you complacent. Even if your collision deductible is low, don’t let your guard down. Dealing with car repairs and the other driver after an accident — not to mention the injury risk — probably isn’t worth it.
4. Don’t neglect routine maintenance. Overheating, breaking down or blowing a tire can be terrifying and dangerous. Fortunately, these problems can often be prevented with regular maintenance. Check your tire pressure and fluids monthly and have a trusted mechanic inspect your car thoroughly once or twice a year.
Have questions about your auto coverage? Reach out today to discuss your policy.
6 Surprising Things Homeowners Insurance Covers
Meteor fallout? Check. Gravestone destruction? Check. Read on for more unexpected items a standard policy insures
Your daughter’s drone nosedives at a playground and injures another child. The $150 in cash you got for some vintage James Brown singles turns out to be counterfeit. A SpaceX rocket part falls to earth and creams your three-car garage.
Don’t fret! Your homeowners insurance probably has you covered.
You may not know it, but your homeowners (or renters) policy may very well pick up all or part of the tab for your losses or related expenses. It will pay for medical treatment for the child hurt by the drone and reimburse you for the counterfeit cash. And it will help make you whole from that freak attack from outer space.
What Matters to You Matters to Us
“Most people don’t know they have coverage for a drone and even for damage caused by meteors,” says Loretta Worters, a spokeswoman for the Insurance Information Institute, an industry organization. Indeed, she says homeowners insurance protects you from a lot of risks and perils beyond the fire, property theft, and weather damage it’s best known for covering.
Below are six of the most surprising hazards and situations that a standard policy typically covers. Check the fine print in your own policy or talk with your agent for specific details regarding your own policy.
1. Drones
Your policy may cover damage or injury caused by drones used by members of your household, whether it happens on or off your property, according to the Insurance Information Institute.
What if your drone inadvertently photographs someone who then sues you for invasion of privacy? Your policy may cover your defense in that case as well.
And like any property covered by your policy, if your drone is stolen, homeowners insurance will pay for its replacement, subject to a deductible. Of course, it only makes sense to file a claim if the price of your drone is more than your deductible, so be sure to do the math first.
Just remember: A homeowners policy covers only noncommercial drone use.
2. Your Kid’s Dorm Décor
Your homeowners insurance covers items stolen from your home and protects household property when it’s outside the home. That includes stuff in your kid’s dorm room. It also includes property stolen from your car or boat; those losses aren’t covered by your auto or boat insurance. The dollar limit of this coverage is usually 10 percent of the total coverage on all of your personal property.
Just remember: “If the child is spending a semester in an off-campus apartment that’s not college housing, they may not be covered under the parents’ off-premises portion of the homeowners policy,” Worters says. So consider purchasing a renters policy if your child is in this situation. It covers theft and liability—say, someone trips in your child’s residence, gets injured, and sues— and damage from fire, smoke, and other hazards.
3. Space Debris and Other Falling Objects
Damage to your home, outbuildings, and personal property from meteors, asteroids, aircraft, rockets, satellites and other falling objects is insured under a typical homeowners policy. If a celestial object hits your car, however, you’ll have to make a claim with your car insurer.
Just remember: With damage from fallen trees or tree limbs—less exotic but far more likely than space junk—you should file the claim with your insurer regardless of whether the tree belongs to you or your neighbor.
4. Unauthorized Use of Your ATM, Credit, or Debit Cards
As with counterfeit cash, a homeowners or renters policy typically reimburses up to $500 in losses per incident if someone uses any of these cards to steal money from you or buy items in your name. The same goes for forged checks you unwittingly cash, and for losses you suffer due to someone forging your signature on a check.
“This is an example in which your policy deductible doesn’t apply,” Worters says. In other words, you don’t have to meet your deductible before the insurance kicks in; you’ll simply get paid your losses up to $500.
Just remember: Even though your homeowners policy will cover you, report the loss to the card issuer first, and make a homeowners insurance claim your backup option. Credit and debit card companies are required to reimburse or reverse the charges on all but $50 of unauthorized charges or withdrawals as long as you report the incident within 48 hour of discovering it, notes Christina Tetreault, a senior policy counsel at Consumer Reports. The same goes for prepaid cards.
If you miss the 48-hour window, the card issuer is responsible only for returning sums in excess of $500. In these instances, make a claim with your homeowners insurance company to get fully reimbursed.
5. Graveyard Smash
If a headstone, burial vault, or other property on a cemetery plot you own is damaged or stolen, your insurance will reimburse you. You’re covered for the same perils as with other types of property. That could include, for instance, damage by fire or a falling object, vandalism, and theft of a gravestone or statuary.
Just remember: The coverage limit is typically up to $5,000, says Worters.
6. Dog Bites and Other Pet Damage
If Nessie nips your neighbor—on your property or elsewhere—the resulting medical bills are covered by your homeowners insurance. You’re also covered if she scratches the finish on your neighbor’s new Audi or does other property damage.
Just remember: This coverage applies only to harm your pet does to other people and their property, not your own. And certain breeds—pit bulls, Dobermans and chow chows, for instance—usually aren’t covered. Check your policy for your insurer’s guidelines.
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