Winter Weather Reminds Consumers of Insurance Needs

Coming off of a blizzard that hit the New York City area and beyond right after Christmas 2010, many consumers may be going over their insurance coverage to see what is and isn’t covered in their home and with their auto.

According to the ISO, winter storms rank as the third-largest reason for catastrophe losses, finishing only in back of hurricanes and tornadoes. From 1990-2009, winter storms resulted in approximately $25 billion in insured losses.

A spokesperson for the Insurance Information Institute (I.I.I.) pointed out, “Standard homeowners’ policies provide coverage for damage caused by wind, snow, severe cold and freezing rain. Car accidents caused by slippery road conditions are also covered under standard auto insurance policies.”

When it comes to consumer protection, the I.I.I. offers the following advice when it comes to automobile policies:

First, car accidents between two or more drivers resulting from snowy and slippery roads are covered by liability insurance. A vehicle that hits an object would typically be covered under the optional collision portion of an auto policy.

Secondly, physical damage to a car caused from heavy wind, flooding or fallen ice or tree limbs is covered through the optional comprehensive section of an auto policy.

When it comes to homeowners’ policies, wind-related damage to a home, its roof, its possessions and other insured structures on the property are covered through a standard homeowners’ insurance policy. When it comes to wind-driven snow or freezing rain that enters a home due to damage from wind, this is also covered.

For tree limbs that fall on a home or other insured-structure on the property, these would be covered for both the damage the trees leave on the home and the expense of removing the tree. The coverage is typically up to approximately $500. Keep in mind that ice or other objects landing on the residence are also part of your coverage protection.

A standard homeowners’ policy will also cover you for damage to the home and its contents resulting from the weight of the snow or ice that leads to a collapse.

Freezing conditions like burst pipes or ice dams are also covered. Note, however, there is typically a requirement that the homeowner has taken reasonable measures to prevent these losses from happening in the first place.

Finally, a standard homeowners’ policy will also include added living expenses should a home be severely damaged by an insured disaster. This would compensate for reasonable expenses to reside elsewhere while the home is being repaired.

As the I.I.I. spokesperson notes, consumers who have to file an insurance claim should contact their insurance agent as soon as possible. It is important to alert your agent to the extent of the damage and then begin to document your loss with receipts, photographs or lists.

While taking a break from the outdoors and the winter weather, review your current auto and homeowners’ coverage to make sure you’re not left out in the cold.