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3 months ago · by · 0 comments

Does Incidental Damages Is Covered Under Homeowners Insurance?

Incidental damages are a kind of damages that are associated with legal damages or related to actual damages. If the incidental damages that you are referring to are concurrent causes of loss, then the answer is yes. Homeowners’ insurance could pay incidental damage claims, as long as the caused of the damages are due to proximate cause — or a covered peril. 

Under the concurrent causation, any loss are applicable for coverage. With this doctrine, it says that if a loss is due by two perils, should one of it is excluded peril and the other is covered — then the loss could be covered. 

What Is Concurrent Causation That Can Lead To Incidental Damages?

Concurrent causation is a legal doctrine that is related to property insurances. It is applicable when a loss happens that is due to two or more causes — one of which is applicable for coverage and the other is not. These causes can occur before the other or could occur at the same time. 

Examples Of Incidental Damages That is due to Concurrent Causes

The insured’s basement has been flooded, (excluded peril) — however, the flooding is due to lightning (covered peril) that struck its power transformer — on which a power outage occurs, and leads to the shutting down of their sump pump. Thus, the court of law found out that hazardous lightning plays a part in the damages. With this scenario, the losses are applicable for coverage under its homeowners’ policy. 

Suppose that the insured owns a commercial building on where he uses it as a warehouse. One evening, a fire started in the warehouse that damages the exterior of the dwelling. Soon after, heavy rain occurs and causes a flash flood the eventually destroys the building. The building is insured under commercial property insurance — on which could cover damages due to fire but exclude coverage for damages due to flood. 

Kinds Of Damages That Are Not Applicable For Coverage Under The Homeowners Insurance Policy

Homeowners’ insurance is always a requirement for individuals who have a mortgage. However, having a homeowner’s insurance policy doesn’t mean that you are applicable for any damages — that can eventually drain your savings.

For instance, an HO-2 policy could cover you from a “named-peril” only, on which it could cover the insured against 16 specific perils. In contrast, HO-3 and HO-5 policy could cover damages in an open peril basis unless the risk is excluded. However, typically, these policies are more expensive than an HO-2 policy. 

Damages Due To Wind In Hurricane-Prone States

If the insured is living along the Gulf Coast or Atlantic, on where the risk of a hurricane is much higher than other locations — then, you may need to consider purchasing separate windstorm insurance. In the district of Columbia, some insurers charge the insured a special wind deductible rate. Besides, instead of a dollar amount, they offer the deductible is a percentage limit. The insured could choose from 1% up to 10% depends on where the insured purchase its insurance policy. In insurance, the higher the deductible rates, the lower the premium the insured could get. However, this deductible rate is sometimes can be deceiving. For the reason that every time a loss happens, you should be able to pay its deductible rates. So, it is much better to choose a deductible rate that will not put you in hardship, if a wind damages occur. 

Damages Due to Dogs

According to the Insurance Information Institute, dog bites are accounted for a lot of liability claims, making it seems like dog bite are covered. However, not all breeds of dogs can be covered. Furthermore, it can even make the proposed insured, disapprove of an insurance policy. Most companies refuse certain types of breeds form coverage — examples of rottweilers, pit bulls, and wolf hybrids. However, several insurance providers do not deny coverage based on the races of the proposed insured’s pet — but would instead look at the history of the pet dog — including its aggression and its prior human attacks. 

Acts Of Authorities 

Acts of authorities are not the liability of your insurance provider. Therefore, any confiscation of the insured’s personal properties — and for instance, that the authorities take down your home because you owe them the land — won’t be covered under your homeowners’ policy. Any cost of repair or replacement for your home will not apply to coverage under this particular scenario.

Nuclear Hazards

Homeowners’ insurance cannot cover homeowners from nuclear damages. However, atomic companies have the requirements to provide their insurance, specifically liability coverage — in an accident; the nuclear company would be liable for nuclear damage. 

Infestations

Merely maintaining the insured’s home is the policyholder’s obligation. Therefore, any infestations of termites, bedbugs, and mice are not applicable for coverage. 

Wear And Tear

The same reason as the infestations — the policyholder, is the one who is responsible for maintaining its own home. Homeowners insurance can only cover sudden or accidental damages — such as theft, fire, burglaries, and other covered perils. Keeping the exterior, roof, and repairing slow leaking pipes is the homeowner’s obligation. 

Mold

Homeowners’ insurance providers do not cover damages due to mold infestations. If the molds manifest from long-term water leaks, irresponsible poor maintenance, molds due to defects in construction and cavities due to natural disasters such as floods. However, standard homeowner policies could cover the repair for the damages that are due to sudden bursting of plumbing. However, only if the homeowners take action to fix the problem right away. 

Damages Due To Flood 

Generally, a flood is uninsurable under a standard homeowners’ policy. Examples of flooding are torrential rain and overflowing rivers. However, every homeowner is applicable for protection from this damages, should he procures a flood insurance endorsement into his existing homeowners’ policy. Generally, damages due to bursting of pipes are covered with a homeowner’s insurance policy — for example, the water pipes behind your washing machine burst even though the insured is using the washing machine with precautionary measures. The damages due to the bursting water are applicable for coverage. 

Movement Of Earth

Any movement of earth — including landslides, mudslides, and sinkholes are not applicable for coverage under a standard homeowners insurance policy. However, some insurance providers offer sinkhole protection for the citizen of Florida and Tenessee. Also, homeowners could purchase an insurance policy if the location of its dwelling is in the flood zone. Here at homeowners Insurance Los Angeles, we can help you find the most affordable earthquake insurance in town. Contact us know, and we will help you cover your risk of losses. 

Damages To The Car Of The Insured

Generally, the homeowners’ insurance policy does not cover damages to the car of the insured. The insured must procure a car insurance policy to protect its vehicle from certain types of losses. Car insurance has coverage for the bodily injury and property damages liability of the insured. Additionally, car insurance has a collision coverage — on which can cover damages to the car of the insured, that is due to colliding with another vehicle and object. It can also cover damages that are due to the overturning of the insured vehicle. Besides, car insurance has comprehensive coverage on which can cover damages that are due other than collision damages — including fire, theft, vandalism, and other more causes of damages.

Here at Homeowners Insurance Los Angeles, we could help you find affordable homeowners insurance with comprehensive coverage. Get a free quote now and find a great deal with us. 

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