Fallen Trees – What Does The Insurance Policy Say?

You and I both know it, almost no one actually reads their homeowners policy.   Although if you are having trouble sleeping at night, reading is might help with that problem.   And even if you do read it, you may have some trouble interpreting what is covered and what is not.  In this blog I’d like to tackle a common question and point out an area where no policy provides protection, yet could result in an expensive bill for you: fallen trees.

I love to see large old trees in the yard in front of or behind a home.  But large trees in the yard can pose several risks to homeowners.  The most dangerous of course is that a falling tree could injure someon in the house or on the property.  After that, there is risk to the property itself, from the house to outbuildings to fences, yards, patios and driveways.  Now for the legal disclaimer:  Insurance policy forms vary from state to state and from company to company so I suggest that you consult your own policy for exact and specific coverage.  This blog will try to answer these questions in a general way that should be accurate for the majority of NC homeowners with a North Carolina Homeowners Insurance Policy.

With the disclaimers behind us, let’s move on and talk about what is covered and what is not covered in the area of fallen trees for the standard NC HO-3 policy form.  The damages to your home or your structures caused by a windblown, fallen tree will be covered, subject to your deductible.  In addition, the standard HO-3 homeowners policy form will provide up to $1000 for the cost to remove the tree from your premises.  This applies if your tree was felled by wind, hail, or weight of ice, sleet or snow.  But here is where it gets tricky.  If that tree does not damage your home, outbuildings, or fences, then no removal coverage will apply.  There is one exception to this rule.  If the fallen tree is blocking your driveway, then you will have up to $1000 coverage to clear it from your driveway enough to let you get vehicles in and out of your driveway.

Sometimes when reading the coverage on an insurance policy, you have to look carefully for what is not written in the policy language.  So what is missing here?  Well, think about the $1,000 coverage limitation.  While generally $1000 seems like plenty of money for removing a fallen tree, if you have large trees, or if several come down at one time, then $1000 might fall far short of what you need.  I have seen situations where a tree fell in a difficult place between two houses  and while it didn’t hit any structures, a crane was required to remove it.  Those costs can run up into the $10,000 range in a big hurry.  I’ve also seen cases where one tree falling brought down a couple more trees with it, generating cleanup costs well beyond the $1000 mark.  So if you have large trees around your home, you might have a rather large loss exposure that simply won’t and can’t be covered by an insurance policy.

If you are a perceptive reader, then you may have noticed that lightning was not mentioned in the list of covered perils that can trigger the removal coverage.   There is good news on that front.  The Standard NC HO-3 policy form includes some direct coverage for trees, shrubs and other plants that are damaged by lightning.  The policy will pay up to 5% of the coverage limit on your dwelling for lightning damage to trees, shrubs, plants or lawns.  But, no more than $500 will be paid for any one tree, shrub or plant.  But here’s the good news, if that tree is hit by lightning, it is now considered covered property and is eligible for removal coverage as well.  So if that huge tree in your yard falls and hits nothing on the way down, you might find yourself hoping for some evidence that it was hit by lightning.  Otherwise, you are going to be writing some big checks to tree removal service companies.

Here at Clinard Insurance Group, located in lovely Winston Salem, NC, we want all insurance buyers to be informed consumers.  If you need any help with your home or auto insurance, or with your life insurance or even insurance for your business, we hope you will call us, toll free, at 877-687-7557.