Homeowner's Insurance and Tree Damage to a Neighbor's Property
Insurance is regulated by individual states in the U.S. Within the 50 states, local areas may have laws that differ. Homeowners' insurance policies vary depending on a number of factors, including regional perils, the level of coverage the homeowner has purchased and the exclusions and limitations of the policy. That being said, typically, if a tree falls from your property onto your neighbor's property and causes damage, the neighbor's homeowner's insurance covers the event.
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When There Is No Negligence on Your Part
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Generally, the neighbor's homeowner's insurance covers his property, and your homeowner's insurance covers your property. If the tree fell due to a wind storm and wind storm is a peril covered by the neighbor's insurance policy, the neighbor's insurance should cover the damages up to the limits of his policy. Since your insurance is not affected, you would not likely experience any premium increase. Since the neighbor may have to pay a deductible, a voluntary gesture of offering to either pay the deductible or divide the cost and pay half may help keep a friendly relationship.
If There Is Negligence on Your Part
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Suppose a tree fell on your neighbor's house and the tree that crashed down was diseased or dead. Suppose also that the neighbor had complained to you about the unstable tree, sent you letters and had relayed the complaint to a city or county agency. In this instance, the neighbor could take action against you, contact your insurer and perhaps bring suit. Your insurance company would in all likelihood cover your liability, including your defense in a lawsuit up to the limits of your insurance policy. You might face an increase in insurance premium cost as a result.
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Invoking an Optional Coverage
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If your homeowner's insurance policy has optional coverage, known as Damage to Property of Others, the tree falling from your property onto your neighbor's house may be covered. This type of coverage is usually under the heading of Other Coverages within the sections of the policy that refer to liability issues. The advantage of this coverage is that it likely does not require a deductible. Additionally, you may be able to invoke it without admitting any liability, and there is probably no need for a judgment to be issued. Because of this, payment may be processed far more quickly than if there were any legal action. This option tends to be feasible, if the cost of damage is low, since the amount of coverage may be quite limited, such as to around $1,000. You could face an increase in insurance premium cost as a result of using this coverage.
Other Considerations
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Your neighbor's insurer might go after your insurer to recover some of its costs. If the tree needs to be removed from the neighbor's property, the neighbor's insurance likely covers that expense up to whatever cap his insurance has for removal of a tree. Your homeowner's insurance may have a provision that replaces a tree damaged by covered perils within certain limits.
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References
- Photo Credit fallen tree image by Brandt Boulden from Fotolia.com
