Home insurance and vehicle insurance are usually two very choice worlds that don't commonly come into conflict. Car insurance covers auto accidents, abode insurance covers householders considerations, and your coverage isn't complicated. Well what do you do in the example that something strange like that happens? What do you do when a vehicle runs into your house?
I ask because something similar recently happened to me. A friend of mine lived in a little 2-bedroom house in east Texas. Last week, a drunk driver careened over the curb, knicked their garage, then drove straight through their living room window.
Normally, any act of vandalism in situations like this get paid through the other party's householders insurance. Homeowners insurance policies commonly protect damage we (by accident) cause to other people's abode. But because the vandalism happened to be with a vehicle, and not with a baseball bat or a rock, householders insurance doesn't apply.
My friend tried contacting the man's auto insurance provider, who claimed that in cases of property damage (like this), they would only pay the replacement costs of the living room and the possessions, minus the depreciation on the house. This means my pals get almost nothing for the tens of thousands of dollars of damage.
So how can you keep this occurring from you?
Well, wherein auto insurance fails, householders insurance succeeds. Guaranteed replacement coverage will cover the full cost of repairing your homeor in this case the tv, sofa, and living roomwith no strings attached. You only must pay the deductible. And even then, there's good news.
What type of good news? Let's say that you're with Allstate, and the drunk driver is with State Farm. You pay your deductible to Allstate, who then turns around and demands State Farm to pay the full amount of the damage. State Farm plays ball, and presents Allstate the full amount for the damage. Allstate turns around and hands back that full amount, as well as your deductible. And since the driver was drunk, and the damage was in no method your fault, this doesn't count as a fault claim towards your policy. That means your premiums received't distinction. The explanation why for this is an engaging loophole in the collision of the householders insurance world and the auto insurance world. When the Auto Insurance Company pays you directly, they have got the right to take out the depreciation of your property. However, when your Homeowners Insurance Company recordsdata the claim for you, the Auto Insurance Company is forced to pay back the full amount of the claim.
This is just one of many loopholes that could save you funds on insurance. It definitely pays to be well informed.