Courtesy of iii.org

You may have read the recent story featured in the I.I.I. Daily about raccoon damage and homeowners insurance. The gist: raccoons got into a house and caused $80,000 worth of damage. The homeowners were surprised to learn that their insurance wouldn’t cover any of it.

So what’s the deal with animal damage and insurance?

Homeowners insurance

Let’s start with the easy stuff. If your dog Fido rips through your couch or pees all over the wall, you’re out of luck. Standard homeowners policies won’t cover any damage to your house or personal property caused by a pet. And”pet” is a pretty broad term. Doesn’t matter if it’s a Shih Tzu or a Clydesdale horse, pets are any animal you own.

What about animals that aren’t pets, like deer or birds or – God forbid – rats? That’s where things get interesting.

Building damage: You probably aren’t covered for any damage to the building caused by birds, rodents, insects, or vermin. There also probably won’t be coverage for any nesting or infestation. Insurance policies can vary widely, however, so make sure you ask your agent what is and isn’t considered a rodent or vermin (some insurers will say raccoons are vermin, some will say they’re not). The specific details of your policy will determine your coverage.

Damage to the building from other wild animals could be covered, though. If a moose runs through the sliding door to your deck, the damaged door would be covered.

Personal property damage: Unfortunately, your personal property is probably not covered no matter what kind of animal does the damaging. If a moose runs through your sliding door and wreaks havoc on grandma’s china, then you’re covered for damage to the door, but not the china.

Liability: You go to your friend’s house and bring Fido for a dog playdate. Fido then rips through your friend’s couch. Are you covered? Yes. Homeowners liability protection will cover the damage to other people’s property caused by your pets. Just not your property. Friendship saved.

Personal auto insurance

A squirrel chews through the wiring in your car. Fido dents your door chasing after a squirrel. A moose rams your car in a fit of rage, smashing the windshield. (Why do I keep thinking of moose scenarios?)

Does personal auto insurance cover animal damage? Yes, if you have optional comprehensive coverage. If you only have collision coverage, then you’re not covered.

Collision only covers damage when a car overturns or hits another car or object. Comprehensive covers…more or less everything else: damage from falling objects, fire, explosions – and birds and animals.

So if you paid the extra premium for comprehensive coverage (like most Americans do), then you’re covered for damage from chewing squirrels, incautious Fidos, and rampaging moose (meese?).

Courtesy of iii.org

Pop quiz: what’s one of the most common types of homeowners insurance claims? (Hint: it’s not fire.)

It’s water damage. Maybe that’s not surprising – it rains a lot in many places. But what may surprise you is that things like pipe bursts and broken appliances are increasingly the main causes of water damage in homes.

In insurance-speak, these are called “non-weather water damage claims.” Worryingly, these claims are happening more often and are getting a lot more expensive. A Best’s Review article reports that the average homeowners water damage claim is now over $6,700. Large losses (over $500,000) have doubled in number over the past three years. Non-weather water damage is now costing insurers (and their policyholders) billions in losses every year.

This is happening for several reasons. Our housing stock is aging, as is our infrastructure. More houses are being built and they’re getting bigger – many houses now have extra bathrooms and second-floor laundry rooms, which means more piping. (The story is probably different in Florida. You can read why that is here.)

But the worst part is that many – if not most – water damage claims are preventable. Inspecting pipes or conducting routine maintenance can go a long way. That’s where the internet of things (IoT) comes in. Smart devices and connected sensors installed on piping can detect leaks before they occur or before they cause too much damage. They’re basically smoke detectors, but for water.

And they work. Best’s Review noted that installing IoT devices can reduce water losses by up to 93 percent.

The Review quoted an IoT company CEO who claimed that leak detection devices could save insurers and their customers $10 billion every year.

Homeowners have admittedly been slow to install IoT to help detect leaks. But insurers are hopeful that raising awareness about the issue, offering policyholder incentives like premium discounts, and encouraging IoT installation during home construction will begin to turn the tide.

Update: Of interest, Washington state adopted a rule in 2018 that specifically mentions water monitors and water shut-off systems as permissible tools for an insurer’s risk reduction program.

Courtesy of iii.org

Pop quiz: what’s one of the most common types of homeowners insurance claims? (Hint: it’s not fire.)

It’s water damage. Maybe that’s not surprising – it rains a lot in many places. But what may surprise you is that things like pipe bursts and broken appliances are increasingly the main causes of water damage in homes.

In insurance-speak, these are called “non-weather water damage claims.” Worryingly, these claims are happening more often and are getting a lot more expensive. A Best’s Review article reports that the average homeowners water damage claim is now over $6,700. Large losses (over $500,000) have doubled in number over the past three years. Non-weather water damage is now costing insurers (and their policyholders) billions in losses every year.

This is happening for several reasons. Our housing stock is aging, as is our infrastructure. More houses are being built and they’re getting bigger – many houses now have extra bathrooms and second-floor laundry rooms, which means more piping. (The story is probably different in Florida. You can read why that is here.)

But the worst part is that many – if not most – water damage claims are preventable. Inspecting pipes or conducting routine maintenance can go a long way. That’s where the internet of things (IoT) comes in. Smart devices and connected sensors installed on piping can detect leaks before they occur or before they cause too much damage. They’re basically smoke detectors, but for water.

And they work. Best’s Review noted that installing IoT devices can reduce water losses by up to 93 percent.

The Review quoted an IoT company CEO who claimed that leak detection devices could save insurers and their customers $10 billion every year.

Homeowners have admittedly been slow to install IoT to help detect leaks. But insurers are hopeful that raising awareness about the issue, offering policyholder incentives like premium discounts, and encouraging IoT installation during home construction will begin to turn the tide.

Update: Of interest, Washington state adopted a rule in 2018 that specifically mentions water monitors and water shut-off systems as permissible tools for an insurer’s risk reduction program.

Courtesy of iii.org

Ice, snow and wind can have devastating consequences to your home—and to your household budget. Fortunately, there are precautions you can take to avoid the expense and inconvenience of winter damage—and even help you save on heating costs. Get started when the leaves begin to turn so your home is well prepared when the cold, harsh weather hits.

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Winter weather prep for the outside of your home

When temperatures drop dramatically and the snow flies, you’ll be glad to have taken these measures to safeguard your house.

• Clean out the gutters. Remove leaves, sticks and other debris from gutters, so melting snow and ice can flow freely. This can prevent ice damming, which is what happens when water is unable to drain through the gutters and instead seeps into the house causing water to drip from the ceiling and walls.
• Install gutter guards. Gutter guards prevent debris from entering the gutter and interfering with the flow of water away from the house and into the ground.
• Trim trees and remove dead branches. Ice, snow and, wind could cause weak trees or branches to break free and damage your home or car, or injure someone walking by your property.
• Repair steps and handrails. Broken stairs and banisters can become lethal when covered with snow and ice.
• Use caulking to seal cracks and wall openings to prevent cold air and moisture from entering your home. Caulk and install weather stripping around windows and doors to prevent warm air from leaking out and cold air from blowing in.

Winter weather prep for the inside of your home

Frigid temperatures, snow and ice can wreak havoc on water pipes and tax heating systems. Ensure all your home’s internal systems are “go” for winter safety and efficiency.

• Add extra insulation to attics, basements and crawl spaces. If too much heat escapes through the attic, it can cause snow or ice to melt on the roof. Water then can refreeze, leading to more ice build-up—and may even lead to ice dams that can damage your roof. Well-insulated basements and crawl spaces will also help protect pipes. Consider insulating garages and other unfinished areas to keep pipes from freezing.
• Provide a reliable back-up power source. In the event of a power outage, continuous power will keep you warm and help to prevent frozen pipes, or a frozen battery operated sump-pump. Consider purchasing a portable power generator to ensure safety—and be sure to follow all guidelines for safe operation.
• Have your heating system serviced. Furnaces, boilers and chimneys should be serviced at least once a year to prevent fire and smoke damage.
• Check pipes closely for the presence of cracks and leaks. Have any compromised pipe repaired immediately.
• Protect pipes in attics and crawl spaces with insulation or plug-in heating cable. Be sure to purchase UL®-listed models of heating cables with built-in thermostats; these will turn on the heat on when it is needed. When using the cables, always follow manufacturers instructions closely.
• Install an emergency pressure release valve in your plumbing system. This will protect the system against increased pressure caused by freezing pipes and can help prevent your pipes from bursting.
• Move combustible items away from near any heat sources that you’ll likely be using. This includes fireplaces, wood stoves and space heaters.
• Install or check smoke and carbon monoxide detectors. Not only do residential fires increase in the winter, but so does carbon monoxide poisoning—so regularly check that your detectors are in working condition.
• Know where your pipes are located and learn how to shut the water off. If your pipes freeze, speed is critical. The quicker you shut off water or direct your plumber to the problem, the better your chance of preventing major damage.
• Hire a licensed contractor to look for structural damage. If damage is found, have all necessary repairs performed as soon as possible.
• Take steps to prevent flooding. Your licensed contractor can also advise you about measures to prevent flooding from melted snow and ice runoff. Plastic coatings for internal basement walls, sump pumps and other improvements can prevent water damage to your home and belongings.
• Consider insuring yourself for a sewer backup. Flooding related to melting snow can overburden sewer systems. Raw sewage backed up into the drains in your home can cause thousands of dollars in damage to floors, walls, furniture and electrical systems. Sewer backup is not covered under standard homeowners insurance or renters insurance policies, nor is it covered by flood insurance but can be purchased as either a separate product, or an endorsement.