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Civil Unrest

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Civil Unrest

Peaceful protests are happening around the globe to bring attention to the issues of race & law enforcement. Unfortunately there are those individuals out there that use such protests to steal & destroy property without regard to the owners. This week we discussed insurance coverage for such events when it comes to personal home & auto.

A standard auto policy includes language to deal with various aspects of civil unrest. In order to have coverage for damage to your auto, you must have purchased physical damage coverage on the auto prior to the occurrence:

“A. We will pay for direct and accidental loss to your
covered auto or any non-owned auto, including
their equipment, minus any applicable deductible
shown in the Declarations. We will pay for loss to
your covered auto caused by:

1. “Other than collision” only if the
Declarations indicate that Other Than
Collision Coverage is provided for that
auto.

2. “Collision” only if the Declarations indicate
that Collision Coverage is provided for that
auto.”

Civil Unrest/Riot would be considered an “other than collision” or “comprehensive loss” and is subject to the deductible:

“Loss caused by the following is considered “other than collision”:
1. Missiles or falling objects;
2. Fire;
3. Theft or larceny;
4. Explosion or earthquake;
5. Windstorm;
6. Hail, water or flood;
7. Malicious mischief or vandalism;
8. Riot or civil commotion;
9. Contact with bird or animal; or
10. Breakage of glass.

If breakage of glass is caused by a collision, you
may elect to have it considered a loss caused by
collision.”

The loss will be settled by the lesser of the cost to repair the damage or the Actual Cash Value of the auto. Most insurance carriers “total out” vehicles for Actual Cash Value if the cost to repair exceed 70% of the ACV. So for example if an auto’s cost to repair is $3,000 and the Actual Cash Value of the vehicle is $2300, the insurance company would most-likely “total” the vehicle.

The homeowners policy follows along with the auto policy with a few exceptions:

“We insure against risks of direct loss to property
described in Coverages A and B only if that loss is a
physical loss to property. We do not, however, insure
for loss:

d. vandalism and malicious mischief if the
dwelling has been vacant for more than 30
consecutive days immediately before the loss.
A dwelling being constructed is not
considered vacant;”

Personal Property also has some limitations:

“We insure for direct physical loss to the property described
in Coverage C caused by a peril listed below
unless the loss is excluded in Section I Exclusions.

3. Explosion.
4. Riot or civil commotion.
6. Vehicles.
7. Smoke, meaning sudden and accidental damage
from smoke.

This peril does not include loss caused by smoke
from agricultural smudging or industrial operations.

8. Vandalism or malicious mischief.
9. Theft, including attempted theft and loss of
property from a known place when it is likely that
the property has been stolen.

10. Falling objects.
This peril does not include loss to property contained
in the building unless the roof or an outside
wall of the building is first damaged by a falling
object. Damage to the falling object itself is not
included.”

Both the homeowners & personal property coverage are generally covered on a replacement cost basis, meaning the cost to repair or replace the damage up to the listed coverage amounts on the declarations page.

Be sure to consult with your insurance agent/company to see how they would cover civil unrest on your auto & home policies.

 

Contact Us!

At M. Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at mvpinsagency@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

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