Vehicle Hits House – Is There Coverage For That?

Ever look at a picture and ask, “How did that happen”? I have a cousin who is a truck driver, and I recently sent him this picture with that very question. He wasn’t able to explain but had a question of his own: Would that be Homeowners Insurance or Auto Insurance? And like every good agent, I responded, “That depends…” and started analyzing.

The usual knee-jerk reaction would be that the trucking company insurance would pay. However, this is a moving truck that an average individual would rent. Typically, when renting a vehicle for moving, the driver’s auto policy will provide liability coverage. But what happens if they have lower limits or the damage caused is more than the policy will pay? There are two options, the Homeowners Insurance policy will then cover the difference, or the homeowner can pay out of pocket. Of course, both scenarios will result in a suit being filed against the driver to recoup damages. After all, it’s not the homeowner’s fault that their house was hit.

In this day and age, a judgment in a liability suit can put a lien on future earnings, retirement accounts, and future sales of property. So how does someone protect their future from being impacted by something like this?

The answer, by having an Umbrella policy.

An Umbrella policy is a liability policy that provides extra liability coverage starting at $1,000,000. This policy is designed to accompany a home and auto policy (plus any other policies you may have) and provide additional protection, much like using an umbrella with a raincoat and rain boots. Not only would it offer a high limit of insurance, but it also includes coverage for defense costs. This benefit is a significant plus in our book because lawyers are expensive. In the case of our friend pictured above, if they have an umbrella, then not only would there be enough coverage, but they also avoided a lawsuit.

We believe that you don’t have to be rich to protect your assets, both current and future. And while the example above may be extreme, we’ve seen plenty of claims that involve cars leaving the roadway and striking houses. Unfortunately, they often don’t have enough coverage on their auto policy to cover the structural damage to the home they struck. So give us a call, click the chat now button, or email if you would like to discuss purchasing an umbrella or have us review your current coverage.

So back to our original question, how did that trailer end up on top of that house? Lucky us, there was a video! Click here to check it out.


Sarah Sutton