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All my CDs and tapes were recently stolen from my vehicle. My insurance company advised there is no coverage for these items in either my auto insurance or my homeowner’s insurance policy. Is this true?
Almost all auto and homeowners policies exclude coverage for any losses of tapes, disks and other sound transmitting or receiving equipment used in an automobile. Some insurance companies however, will provide coverage for these items for an additional premium. Check with your agent to determine if coverage can be purchased for the stereo, tapes and disks used in your auto.
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My boat was stolen and now my insurance company will not pay the claim on my homeowner’s policy. Can they deny my claim?
Theft to watercraft, including furnishings, equipment and outboard motors, are typically excluded if the theft occurs outside your residential premises. To adequately cover your boat and its accessories, you should contact your agent regarding a separate policy covering the boat.
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I have specifically insured antique items listed on my homeowner’s policy. If I have a total loss, would the insurance company pay me the insured value?
Your insurance company would first confirm the value of the items with one or more independent antique dealers. You should then be paid a dollar value based on the dealer(s) estimate of the worth of the antique items. If you disagree with the settlement offered by your insurer, then you can follow the dispute resolution process outlined in your policy. There is a simpler way: Get appraisals and have your agent establish the stated values in the policy. You should also keep your appraisals up-to-date.
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During a storm, a tree from my neighbor’s yard fell and destroyed my fence. Does my homeowner’s policy pay for the damage or does my neighbor’s policy?
Generally, your own policy should cover the loss. Your insurance company may be able to recover the amount it pays you for the loss and your deductible from the homeowners insurance that your neighbor may have if the loss occurred as a result of your neighbor’s negligence.
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Recent rainstorms have flooded and damaged my basement. Is there any coverage under my homeowner’s policy?
Flood coverage is generally excluded on the basic homeowners policy. However, some homeowners policies provide coverage for backup of sewers and drains that cause flooding in your basement. This coverage can be purchased for a nominal premium. You should check with your agent to see if this coverage is provided and how much it costs.
If, however, you live in a flood-prone area, you should consider – and may be required by your lending institution – to purchase a flood insurance policy. Your agent should be able to inform you about the Federal Flood Insurance Plan and the exclusions and limitations of coverage in this policy.
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When can an insurance company cancel my homeowners coverage during the policy term?
Generally, your policy can be cancelled for these reasons:
- Non-payment of premium;
- Material misrepresentation/Fraud;
- Conviction of a crime arising out of acts increasing the hazard insured against. (For example, conviction for illegal storage of fireworks);
- Discovery of willful or reckless acts or omissions by the insured increasing the hazard insured against. (For example, not getting a gas leak fixed);
- Physical changes in the property insured which result in the property becoming uninsurable. (For example, should the home become vacant for more than 60 consecutive days, a greater exposure to vandalism and damage is assumed to exist); and
- A determination by the Commissioner of Insurance that continuation of the policy would place the insurance company in violation of the law.
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The food in my freezer went bad because I lost power in my home. Does my homeowners policy provide coverage for this?
The basic homeowner policy usually does not. However, this is a popular coverage for insurance companies to offer and you may be able to buy this coverage for a nominal additional premium. There is also the issue of where the power was lost. Some policies are limited to coverage for electricity lost in the home or where the electricity enters the home. Others will limit coverage to within so many yards from the home. Your agent should be able to tell you about the availability of coverage and how much it would cost.
