- Division of Insurance
Parts of Massachusetts have seen several significant weather events over the last few weeks, with hail, strong winds and heavy, localized rain fall. While many residents impacted by these storms fortunately did not have substantial damage, these weather events serve as a timely reminder for consumers to know what their policy does and does not cover.
“We encourage all covered persons to take time to read and understand their insurance policies. It is also important to understand the rights and responsibilities that are built into every policy. The more that covered persons understand about their policies, the less likely there will be misunderstandings when a severe weather event occurs,” said Commissioner of Insurance Gary Anderson.
The Division of Insurance reminds consumers of the following:
For your home
- Home insurance policies usually have deductibles to make premiums more affordable and some have special deductibles that apply to specified wind events. Consumers are responsible to pay the cost of all covered losses up to the policy’s deductible. Every year as coverage is renewed, it is important to consider whether the policy deductible level continues to be right for the circumstances.
- A homeowner’s policy generally only provides coverage for the house, garage and other named items in the policy, such as a shed or a fence on your property. A standard homeowners’ policy does not provide coverage to clean up fallen trees on a property that do not land on or strike any covered structure. In most instances, homeowners will need to hire a tree cutting service to remove these trees at their own cost.
- Standard homeowners’ insurance policies do not cover damages resulting from a flood. Depending on where your home is located in Massachusetts, you may be able to purchase flood insurance through the National Flood Insurance Program (NFIP) which is administered by the federal government and available to renters, homeowners and business owners.
- While most people think of flooding as an overflow of a body of water, the NFIP will cover damages from water that backs up through sewers and drains, discharges from a sump pump, or seeps or leaks on or through the covered property, but only if a flood occurs in the area and the flood is the proximate cause of the sewer or drain backup, sump pump discharge or seepage of water.
- For those residents who do not live in a flood plain, and may not have flood insurance, the Division strongly advises you review your existing coverage with your agent or insurance company. Your policy may provide coverage for drainage issues or sump pump failures during severe weather events.
- Lightning strikes, as well as fire caused by lightning, are covered perils in almost all homeowners’ insurance policies. But remember, most policies cover the contents of your home on an actual cash value basis. Consumers should discuss the cost of insuring their belongings at replacement cost with their agents or insurance companies.
For your vehicle
- Take steps to protect your automobile from storm damage.
- Have cars properly maintained to make sure that wipers and lights work properly.
- Take care to drive cautiously to avoid storm-related accidents.
- Be aware when parking about shaky tree limbs or fences that could fall on your auto in the event of a storm
- Consumers are covered for accident-related damage to their auto only if they have purchased collision coverage under their auto policy.
- Even without accidents, cars and windshields can be damaged by rain water, hail or by trees/other items falling on cars. Consumers are covered for such damage only if they have purchased comprehensive coverage under their auto policy.
- Even policies with collision and comprehensive coverage have deductibles to make premiums more affordable. Consumers are responsible to pay the cost of all covered losses up to their policy’s deductible. Every year as coverage is renewed, it is important to consider whether a consumer’s policy deductible continues to be right for the circumstances.
Consumers will not want to learn that insurance policies do not offer needed coverage after suffering damage due to a severe weather event. By understanding existing coverages and reviewing them at least annually, consumers can help ensure that they have the right level of protection if a loss should happen. Consumers with questions or concerns about their insurance coverage also encouraged to contact the Division’s Consumer Services Unit at 617-521-7794 or visit the Division’s website at www.mass.gov/doi for valuable information regarding all lines of insurance.
About the Division of Insurance
The Division of Insurance is an agency within the Office of Consumer and Business Regulation. The primary mission of the Division is to monitor the solvency of its licensees in order to promote a healthy, responsive and willing marketplace for consumers who purchase insurance products. The Division is responsible for regulating Massachusetts’ $50 billion insurance industry and overseeing more than 1,600 licensed insurance companies and approximately 141,000 individual insurance producers.
