It’s a far-fetched scenario that even the most prepared homeowner may not think of – what if someone drives into my house? If you’re in a townhome or along a long street, you may not be too worried about it. But if you’re at the end of a cul-de-sac or at the corner of an intersection, it may have crossed your mind once or twice. This incident is a very real threat to your home. So, would you be covered for this mishap? Let’s see.
What happens if I drive into someone’s house?
If you, as a driver, end up crashing into someone’s house, your car insurance should be able to help you cover the damages to the house. At minimum, Georgia requires $25,000 of bodily injury liability per person, $50,000 of bodiliy injury liability per occurrence, and $25,000 of property damage coverage. The property damage portion could help you repair the structure of the house and any belongings you may have crumpled in the process.
The catch is, you have to have the right amount of coverage. Although Georgia requires $25,000 of property damage coverage, that may not be enough to fix the damage you’ve caused. If your limits aren’t above the state minimum, you may be on the hook for what your car insurance doesn’t cover.
What about my car?
If you’d like to get your car repaired or replaced, you’ll have to go through your auto insurance’s collision coverage. Collision coverage is the part of your car insurance that can cover damages to your car if you, well, collide with something. The “something” in this case, would be the house. However, collision coverage is typically not required by law. It can be required by a bank or loan company to get the loan for the car. So, it’s important to look over your policy and be sure that you actually have the coverage. Otherwise, you may be out of luck.
Whose insurance should I file the claim with?
If you’re the homeowner, though, you may want to go directly through the driver’s car insurance to get the repairs done. After all, your house couldn’t have really run into their car. So, filing through the driver’s property damage coverage is probably the easiest route to go. Plus, it could save you from having to make a home insurance claim – which is always nice.
Will my home insurance cover if someone drives into my house?
Let’s say that you can’t or don’t want to go through the driver’s insurance. Your home insurance could help you cover the damage to your house. In fact, your homeowners’ policy can cover all sorts of kooky things. But you’ll have to read up on your policy to tell exactly what’s covered by your insurance.
The most common home insurance policies cover perils like:
- Falling objects
- Windstorm/Hail damage
- Vandalism, and (wait for it)
- Aircraft & VEHICLE DAMAGE!
So, you’re probably covered if someone drives into your house. Now, the question is, how much are you covered for?
What will my home insurance cover if someone drives into my house?
As with car insurance, you have to have the right amount of coverage to repair or replace your house’s structure and your belongings. There are two ways that home insurance can cover perils for both your structure and your personal property.
Market Value vs. Replacement Value
Your home’s market value is not the same as its replacement cost. If you want to repair or rebuild your house after an incident, the market value may not be enough. The market value of your house may be enough to buy a similar house on the market, but it might not cover things like contractors, materials, and other costs associated with building. That’s what insuring your home for its replacement cost could help with.
Actual Cost Value vs. Replacement Cost Value
Your belongings, on the other hand, can be covered for its actual cash value (ACV) or their replacement cost value (RCV). If your things are insured for their actual cash value, your home insurance can reimburse you for the value of your belongings, plus depreciation. So, if someone drives into your kitchen and takes out the $600 oven you bought a year ago, ACV coverage may only reimburse you for $450 because the oven has depreciated since you bought it.
However, if you’ve insured your belongings for their RCV, your home insurance could help you replace the items at today’s prices. So, if the oven you bought or a similar oven that sold for for $600 last year is now $750, your home insurance could help you replace the oven at the $750 price point.
That’s why it’s vital that you read your homeowners’ policy all the way through. Your policy details the coverages you have and knowing what they are can save you a lot of money and headache later.
Speaking of which, we want to save you a lot of time, money, and headaches early on. That’s why our experts can take on the heavy task of finding the right home insurance (or car insurance) for you! We’ll work with you to find out the best home insurance policy for you, and then give you free, customized quotes on affordable coverage. We can even bundle your insurance for more savings! To get started, just give us a call, fill out our online form, or LiveChat with an expert today.