Does Insurance Cover Tree Loss After a Hurricane?

Homeowner's insurance policies don't pay for removing downed trees unless they hit your house.

Standard homeowner's insurance policies cover damage from windstorms and other weather-related perils that could strike your home, but there are some damages from a windstorm that standard policies may not cover. One such coverage gap is damage to trees. The most common homeowner policy sold in the United States -- HO-3 -- limits coverage for loss of trees.

Tree Coverage Limits

In general, a standard HO-3 homeowner's policy will cover removal of blown-down trees only if the tree falls onto your house or a covered outbuilding, according to the Insurance Information Institute. In that case, the policy will cover the damage done to your structure, plus the cost for removing the tree from your building, up to a tree-removal coverage limit that's typically around $500 per tree lost. Some companies' standard policies may also pay for removal of fallen trees that block access to your property -- again, up to a limit. Payments will be subject to your policy's deductible requirements, which may be higher for hurricane damage.

Out of Luck

Removal of a blown-down tree that didn't damage your structures or block entry to your property is not covered by a standard homeowner's policy. You must pay the tree removal costs out of your own pocket. Under the best of conditions where the tree is relatively small so heavy equipment like a crane isn't needed and there is easy access to the downed tree, removal can still cost up to $1,200 in most markets, advises Doug Malawsky, for a National Underwriter's website.

Tree Loss Insurance

Some property/casualty carriers may offer optional tree loss insurance that will pay the cost to remove and replace blown-down trees from anywhere on your property. If such a supplemental policy is available in your area, it typically will insure trees, shrubs and other landscaping for up to $100,000 in removal and replacement costs. You may be able to buy specialty landscaping endorsements for a higher amount.

Tree Loss Adjustment

If you have tree removal and replacement coverage, the insurance adjuster will have to determine if the tree came down only because of the force of the wind or rather than by some preexisting weakening condition, such as rot in the trunk or roots. Where cause of the tree loss isn't obvious, the insurance adjuster may have to consult with a professional arborist to determine the cause. If the loss is covered, replacement cost typically is the median cost for a comparable tree from nurseries or tree farms, plus transportation and installation costs. If the downed tree was bigger than what nurseries can supply, the insurance adjuster must estimate the replacement cost using formulas published by the Council of Tree and Landscape Appraisers.

References

• Insurance Information Institute: Am I Covered?
• PropertyCasualty360.com: Adjusting Tree Damage and Landscaping Loss, Doug Malawsky, August 2009