Complicated insurance question?

Question:

My sister accidentally backed into our house this morning with her car. While the damage to the car was only moderate (There was a large dent in the bumper, a few smaller dents, and some scrapes), the damage to the house was somewhat extensive. It damaged the electrical lines, telephone lines, etc., not to mention the damage to the walls, door, and shingles. We had an "emergency contractor" repair most of the damages today, but as far as insurance, my dad assumed that his home-owner's insurance should cover the damages to his house (with a deductible of course). But somebody I know told me that the home-owner's insurance can go after the car insurance because the damage was done by the car (which is also in my dad's name). This would in turn raise his car insurance rates, which he does not want. What will the home-owner's insurance likely do in this situation? Should we file a claim on the car? Everyone on the auto policy is accident-free, except for this one complicated situation.

Answer:
This is going to sound like a crazy question... but: how old is your sister?

I know, it sounds insane. But I ask because it's an important point. Your sister was driving your father's car and hit your father's house. Your father can't be liable for causing damage to his OWN property -- which is, I'm afraid, what this may be considered if your sister isn't old enough to be considered an adult. If she's an adult, it may be better for her to claim under HER auto policy, even though she was driving your father's car.

Ultimately, there are a lot of sticky issues that could come into play on this one and the answers will actually vary (slightly) by state. Since that's the case, your best bet is to contact your insurance agent and ask them for assistance in this matter. Ask them for their specific suggestions and to explain why they're making the suggestions -- in writing.

Oh -- and if they won't respond in writing, it's time to get a new agent when this is all said and done, too.

It is possible they will go after the car insurance.

He can always call them; it doesn't mean he needs to file a claim. He should run the issue by them.

In either case, there is the potential for insurance on the home owners policy or car insurance to go up.

Depends if they have a onetime grace or not. Some do, like Amica Insurance.

You can never be penalized for asking questions. I would call them to see. They may have issue if they receive a claim and were never notified, probably unlikely, but again, call.

You need to talk to your insurance agent , and ask him how to proceed. That assumes you have insurance with the one company. You may find that you are NOT covered for any of the damage , since it was a family member that did it .

Your agent can determine what your coverage is , and work out what the best action to take is .

Most likely,the Homeowner's policy will tell you to file with the car ins, and the homeowner's will only pick up what the auto ins doesn't.

Suggest you (or he) call your agent ASAP.

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OK, DOES YOUR SISTER LIVE IN THE HOUSE? Crucial question. If she lives in the house, the auto policy isn't going to pay - the line of coverage "somebody" is talking about is "property damage liability" or damage to OTHER people's property. If the house is owned by your father, and the AUTO policy is owned by your father, then the car didn't damage "other" people's property, and the car insurance doesn't apply.

Now. Here in TEXAS, we have non-standard forms. MOST homeowners policies WILL NOT cover damage that YOUR car does to YOUR house. So if you're in TX, or on a non-standard form, you're not going to be covered anywhere.

But, the short answer, don't file on the car, it's not going to do you any good anyway. File on the house, and hope that you've got a standard HO3 form.

"Umbrella" is a liability coverage, it doesn't apply.

Okay, this is how it will most likely work. The auto insurance policy will pay for the damage to the auto. (if you have collision cov.) The homeowners will pay for damage to the house. You will probably have a deductible on both and can get dinged for surcharge on both down the road.

Complicated insurance question?

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