Advertisement

Insurance agents battle storm of coverage questions

January 31, 2009|DAVID BROCK

Local insurance agents already have been inundated with questions about damage sustained in this week's winter storm - the most common is whether it is covered by their policy or not.

Specific areas that may be covered can vary widely depending on the type of policy or the insurance company, so it is important that both individual citizens and businesses understand what is included under their plan.

There are a some perils, though, that generally are or are not included in typical homeowners or commercial policies.

David Gash of Gash-Fitzpatrick Insurance in Danville said that many of the claims he has received are for tree damage to property or pipes bursting, which are covered by most home-owners insurance.

Gutters and roofs damaged by the ice also have encompassed by homeowners insurance.

Gash said he has also fielded several calls already about flooding.

"In weather like this the ground freezes and pulls away from foundations, so that water gets into the house," he said. "That is not a covered loss with most homeowners policies. That would be covered under flood insurance, which unfortunately most people don't have in an area like this."

Advertisement

One gray area that also will affect many people as the ice thaws is hauling away tree branches.

"It is subject to the deductible, but a lot of homeowners policies do include debris removal up to $1,000."

Gash said that there are some covered areas that have surprised people.

"It differs from company to company, but food that spoils in someone's freezer may be included, usually with a deductible similar to debris removal," he said.

Homeowner policies may also include provisions for hotel stays when power outages make homes unlivable.

For businesses, some of the same types of damage have started to translate into financial hardship.

Water damage not covered

John Funkhouser of Johnson and Pohlman Insurance in Danville said water seeping into basements has posed a problem for many business owners.

"One of the biggest problems we have been seeing is water getting into a structure where the sump pump is no longer working because of the electricity. Unfortunately, this is not covered."

Funkhouser noted that most commercial policies will include getting debris off of a building but not removal from the site.

He said that another common misconception is that insurance will help reimburse businesses when they have to shut down due to power outages.

"When there is a business interruption solely because of lack of electricity the insurance is not going to cover loss of income."

Funkhouser said he understands that insurance coverage presents a painful Catch-22 in these types of situations.

"The truth is that if a tree were to cause some structure damage there is coverage, but if it is just electrical there is not," he said.

Central Kentucky News Articles
|
|
|