December 10, 2014 - SACRAMENTO, Calif. – Consumers in the Northern California region are about to get blasted by a severe winter storm. With dire predictions of the worst storm to hit the region in several years, the Department of Insurance is urging consumers to prepare before disaster strike—making recovery easier. Update your home inventory, have your insurance and important papers at hand, and have an evacuation kit ready.
“Today as Northern Californians prepare for extreme wet weather conditions, it’s important that they remember to make sure their financial affairs are in order,” said Commissioner Jones. “Taking the time to update your home inventory, and understanding your insurance policy are just as important in preparing for this storm as having an emergency go kit and securing outdoor items.”
Having an updated home inventory is vital to help replace lost or damaged items. In the age of smart devices, it has never been easier to take photos and videos of clothing, jewelry and belongings and store them in your digital Cloud to access should the need arise. Additionally, consumers should scan copies of important documents such as mortgage papers, deeds and insurance policies and store them in an offsite location such as the Cloud, an email system, or on a portable drive.
It is imperative that homeowners and renters understand their policy and what is covered. Generally a traditional homeowner’s policy does not cover flood damage, but roof damage caused by wind or damage caused by falling trees may be covered. This is also true for auto policies. Winter storms and wet roads bring some of the most treacherous conditions, so it is crucial that drivers make sure they are covered and that they understand that coverage. Reading the list of exclusions is an important part of understanding your coverage.
Consumers needing assistance with an insurance claim or understanding their policy can get help from the department’s Consumer Services branch by calling toll-free 800-927-4357.
Rain and Windstorm Insurance Facts
Rain and wind - Rain and windstorms can create massive destruction. When this damage occurs, it can open the door to complicated ambiguities with insurance coverage during the adjustment process. Most property insurance covers damage from rain and windstorms. However, there are many exclusions and limitations contained in the policies that are unique to windstorm.
Damage sustained to property can be covered under homeowner's policy, as well as fire policy if the extended coverage of windstorm has been purchased.
Structure or Dwelling - Direct wind damage to the structure or dwelling is covered under the standard Homeowner's policy and property policy (provided extended coverage was purchased). Land, including any costs required to replace, rebuild stabilize or restore the land is not covered.
Damage to the structure caused by falling trees or debris is usually covered under the standard homeowner's policy.
Policies may provide a limited amount to cover removal of tree debris from the residence premises when the tree has caused a loss to the dwelling or blocks a driveway.
Other Structures - Driveways, walkways, patios, fences and detached garages or car ports are covered by damage caused by wind subject to the limit stated in the declaration page.
Trees and Shrubs - Trees and shrubs are not covered by the peril of wind, nor is the cost of debris removal if the tree has not caused damage to covered property.
Personal Property - Wind damage to personal property is covered. Damage to property contained in the building caused by rain, snow, sleet, sand or dust is only covered when the direct force of the wind damages the building causing an opening in a roof or wall. Certain personal property coverage for items such as money, electronic data processing system equipment, watercraft etc. is subject to dollar limitations described in the policy.
Refrigerated Products - Food spoilage from a loss of power affecting a refrigerator or freezer may be covered by homeowner's insurance policies. If power failure is not excluded, there may be coverage under the personal property section of the Homeowner's policy.
Additional Living Expense or Loss of Use - If windstorm damage makes the premises uninhabitable, most policies provide coverage for any reasonable and necessary increase in living expenses incurred by the insured.
Liability - Liability coverage is contingent upon the insured being negligent. Consumers may think that if a neighbor's tree falls and causes damage to their property, the neighbor is responsible and expect to be paid under the neighbor's liability policy. A downed tree that may fall into neighboring property causing damage is generally considered an "act of god" and is not covered under the liability portion of the policy. The insured would have to be determined negligent in some way for this coverage to be triggered.
Automobile Insurance - Windstorm damage to a vehicle such as falling trees or debris is covered if the insured purchased physical damage coverage. Liability only policies do not provide coverage for this type of loss.
