Storm damage Web chat focus [The Free Lance-Star, Fredericksburg, Va.]

July 12--Coverage for trees that fell on roofs and the possibility that recent storm damage could raise insurance rates were among the questions tackled during a special Money Talk$ on Wednesday.

Susan Taylor, a senior insurance market examiner with the Property and Casualty Division of the Virginia Bureau of Insurance, answered those questions and more during the hourlong Web chat.

The complete transcript is available on our website, fredericksburg.com. Here's a sampling:

My neighbors' tree fell on my roof, causing considerable damage to the roof and the room below because water poured in. I think my neighbors' insurance policy should cover this as I'd asked them repeatedly to get that tree trimmed. Why should this go as a claim on my policy?

Unless negligence can be proven, the neighbors' policy covers their home and your policy covers your house. Since you mentioned repeatedly that the neighbor should trim the branches, there is a possibility that you would be able to argue negligence.

While only a court would be able to determine negligence, you may wish to ask your company if it intends to cover the damage and subrogate against the neighbor's insurance company.

Winds blew shingles off my roof, causing a leak that allowed rain to soak my living room. Would I be covered for this damage?

If the damage from the leak was a direct result of the wind, you should have no problem with coverage. Where we encounter a gray area is when the roof is in poor shape and there is a question as to what caused the actual leak.

I have a contractor doing work on my house because of damage from the microburst. What kind of insurance are they supposed to have?

Although the Bureau of Insurance regulates insurance companies and agencies, we do not dictate insurance requirements for contractors.

You may wish to contact the Department of Professional and Occupational Regulation to see if contractors are required to carry certain coverages. As an aside, most homeowners would want to make sure the contractor carries general liability and worker compensation coverage.

Hurricane season's here. If winds from a hurricane or tropical storm blow off my roof and then the interior is ruined by the subsequent rain, is this covered in a typical homeowners policy?

Yes, as long as the subsequent damage is not because the homeowner failed to mitigate the damage. For instance, if the roof is damaged and the homeowner doesn't take steps to prevent further damage (such as making sure the roof is tarped), there could be a question of coverage.

After last year's earthquake, have you seen an increase in people buying earthquake insurance? Is the cost prohibitive? Would you advise it?

My observation is that consumers are more aware of earthquake coverage but we do not have the figures to say more people are purchasing the coverage. While companies charge various rates, it is not cost prohibitive.

The tough question to answer is whether you should buy the coverage. It really depends on what you can afford to lose and the likelihood of an event directly affecting your home. I would urge you to contact your agent to discuss your specific insurance needs.

Our area has been hit by an earthquake, microbursts and that derecho. What are some things I should consider getting in my homeowners' policy the next time I renew? I want to be prepared!

The bureau suggests that consumers do just what you are contemplating, i.e., look at the policy and decide if you have the coverage you need. Some of the questions may be, do I need flood insurance? Most homeowner's policies do not cover flood damage. Do I need sewer backup coverage? Do I need earthquake insurance coverage? Do I have or need ordinance and law coverage?

The last item is an example of when a loss results in extra expense in order to comply with current building code. We strongly urge you to discuss your specific needs with your agent.

Do you think insurance companies will jack up rates because of all the storm damage in Virginia?

Virginia is a "file and use" state wherein companies file the rates without prior approval (as long as the class of insurance i.e. homeowners is competitive). Since rates reflect actual loss experience, it is very possible that some companies will adjust rates accordingly.

Cathy Jett: 540/374-5407

Email: cjett@freelancestar.com

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