Because our job as NH insurance agents is to protect our clients, we hate nothing more than telling a client, "You don't have any coverage."  Unfortunately, this can happen when people make assumptions about their coverage without asking a professional.

Common NH Homeowner Insurance Claims that are Often Denied

As the staff of HPM Insurance in New Hampshire has decades of experience, we would like to share the top 5 homeowner insurance claims that we see denied even though the client thought they had coverage. 

This coverage interpretation is meant to give the reader a guide on the position of many insurance companies but is in no way an attempt to interpret coverage on all policies.  If you have a specific question regarding your policy, please call your New Hampshire homeowners insurance agent to discuss the specifics of your situation.

 #1: "I thought my homeowners' insurance would cover my car if a tree fell on it in my driveway!"

It does not matter if a car is registered or not registered, driven every day or not driven in years with the battery removed; there is no coverage for a car or truck on a homeowner's policy.  To quote an insurance company's standard policy language, "We do not cover motor vehicles or all other motorized land conveyances..." 

Solution:  All cars and trucks must be insured on a car insurance policy.  Refer to the HPM blog "Top 5 Ways to Save Money on NH Car Insurance" to read about insuring your car or truck for comprehensive coverage only.  This is the most cost-effective way to protect your car even when not used and parked.

#2: "Why isn't my rider lawnmower covered after it rolled down my hill?"

As with many insurance-related things, coverage is not always black and white.  Yes, I just stated that the standard homeowner's policy does not cover motor vehicles; however, it can cover "vehicles or conveyances NOT subject to motor vehicle registration which are: A. Used to service an 'insured's residence' or B. Designed for assisting handicapped."

This would imply that the rider lawnmower or personal tractor is covered under the homeowner's policy... right?  Well, yes and no.  Yes, it is covered, but only for the causes of losses indicated in the policy, typically events like fire, windstorm, or theft.  There is not typically coverage for collision or rollover on personal property.

Solution: Buy a separate policy that lists the tractor and its value (called an inland marine policy).  This broadens the coverage to almost anything that could happen to it, including collision and rollover. 

 #3: "I have liability on my homeowner's policy.  Why won't it pay for the injuries of my friend who was on the back of my snowmobile when it crashed?"

The snowmobile itself would not be covered by the homeowner's policy as it is subject to vehicle registration.  The liability is also not covered, as the policy expressly excludes liability "arising out of the ownership, maintenance, use or loading of motor vehicles or all other motorized land conveyances, including trailers." The insurance company would also deny a claim for an ATV or similar type of land conveyance. 

To drill down further, the company may pay a liability claim if the incident occurred "on an insured location." Still, if you own or use a snowmobile or recreational vehicle, we strongly suggest you check with your insurance agent to discuss your situation and usage.

Solution: Buy a separate snowmobile/recreational vehicle policy.  Depending on the cc's of your "toy" and driving history, the price can be very reasonable and offers coverage similar to a car insurance policy.  You can pick the coverage that fits your needs.  Contact HPM Insurance for more information.

#4: "My barn burned down, and now you are telling me I don't have any coverage for my chickens!"

Many people think of their dogs and cats as part of the family, but when it comes to farm animals, there is generally a different mindset of coverage expectations.  As they are farm animals, it may be easier to think of them as property, but regardless, they are still animals.  The standard homeowner's policy excludes "animals, birds or fish."

Solution: Check with your vet.  There are policies available for animal mortality.

5: "My house was robbed with the thief taking all my jewelry.  Now you are saying I can only collect $1000!" 

If you are robbed, many of your belongings are covered without specific dollar limitations; however, most insurance companies limit the amount of insurance available for items highly susceptible to theft.  The standard, un-endorsed homeowner's policy limits the following items.  For a complete list, please refer to your policy.

• $200 for money, bank notes, bullion, gold and silver (other than goldware and silverware), platinum, coins & medals.
• $1,000 on securities, accounts, deeds, evidence of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets, and stamps.
• $1000 for loss by theft of jewelry, watches, furs, precious and semi-precious stones.
• $2000 for loss by theft of firearms.
• $2500 for loss by theft of silverware, goldware, etc.

Notice that the cash is limited to any cause of loss, even a fire, while the others are limited by theft.

Solution: An endorsement is available to increase the cash coverage limit within the home, while jewelry, firearms, and silverware can be scheduled. To protect your securities, deeds, and other necessary paperwork, put these items in a safety deposit box or fire-proof locked safe.

As I often say, knowledge is power.  Don't find out the hard way that something is not covered.  Read your policy and speak to your NH homeowners insurance agent with any questions or concerns you have about your situation.  Most coverage limitations have a solution and that can make everyone happy!