Storm Aftermath: Does Insurance Cover Downed Trees?

The tornado that blew through New York City Thursday, knocking down thousands of trees and limbs has doubtless sent many people scurrying to their insurance papers to find out whether they’re covered for downed tree limbs damaging homes and cars.

The Insurance Information Institute, an industry trade group, said people whose homes are damaged by trees or flying branches should file a claim whether or not the tree came from their yard. Policies cover tree-removal costs in cases when downed trees or limbs cause damage, but won’t cover removal for trees that fell without striking any structures.

Cars damaged by falling trees or other objects are covered under the comprehensive portion of auto insurance policies. That coverage is optional, so not everyone will be able to recover the cost of the repairs.

STATEMENT FROM THE INSURANCE INFORMATION INSTITUTE

With the wild weather that struck much of the northeast last night, many people now have fallen trees and branches on their homes and cars, as well as questions regarding their insurance coverage, according to the Insurance Information Institute (I.I.I.)

To help consumers better understand what is and is not covered regarding trees and shrubs, the I.I.I. has a podcast Understanding Trees and Insurance. This podcast is also available on iTunes, where it can be found by typing “Insurance Information Institute” into the search field. The podcast is also available in Spanish.

“The coverage is really quite straightforward,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “If a tree hits a home or other insured structure, such as a detached garage, standard homeowners insurance policies provide coverage for the damage the tree does to the structure and the contents in it. This includes trees felled by wind or hail.”

It does not matter whether or not you own the tree; if it lands on your home, you should file a claim with your insurance company. After a hurricane or windstorm, trees, shrubs and branches can become projectiles capable of traveling significant distances and can cause considerable damage to property. In most cases, an insurance company is not going to spend time trying to figure out where a tree or other item originally came from.

“In some situations where the felled tree was located on a neighbor’s property, the policyholder’s insurance company may try to collect from the neighbor’s insurance company in a process called subrogation. This sometimes occurs if the tree was in poor health or not properly maintained. If the insurer is successful, you may be reimbursed for the deductible,” said Salvatore.

If a tree hits an insured structure, such as your house or garage, there is also coverage for the cost of removing the tree, generally up to about $500 to $1,000, depending on the insurer and the type of policy purchased. If the fallen tree did not hit an insured structure, there is generally no coverage for debris removal. However, some insurance companies may pay for the cost of removing the felled tree if it is blocking a driveway or a ramp designed to assist the handicapped.

Cars damaged or destroyed by falling trees are covered under the optional comprehensive portion of a standard auto insurance policy.

Standard home insurance policies also provide coverage for damage to trees and shrubs due to fire, lightning, explosion, theft, aircraft, vehicles not owned by the resident, vandalism and malicious mischief. Coverage for these disasters is generally limited to up to five percent of the amount of insurance on the structure of the house. Generally, most insurers will limit the coverage to about $500 for any one tree, shrub or plant. Trees and plants grown for business purposes require a separate business insurance policy, according to the I.I.I.

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(Source: WSJ)