Many people find themselves with a vehicle they value but do not use. It could be a classic car. It may be a vehicle you do not use during the winter months. No matter the use, proper storage matters. For those storing it in a garage, understanding coverage limitations is important. Home insurance does not always provide financial protection for stored vehicles. However, your auto insurance may. What’s the difference?
What Happened to Cause Damage?
At the heart of understanding the coverage you have is determining what went wrong. Here are a few scenarios to consider.
- The garage suffers damage from a thunderstorm. The roof caves in. It falls onto the car stored in the garage. The car now has damage. In this case, the home insurance policy may cover damage to the car. It only applies in instances where the damage is accidental and unavoidable.
- The car suffers damage from someone backing into it. You hit it with your other car. Even though it is in the garage and not used, your home insurance does not apply here. Your auto insurance coverage may help cover these losses, though.
- The garage has a leak. The leak causes damage to the paint on your classic car. In this situation, whether home insurance covers the loss is dependent on the cause of the leak. If hail damaged the roof and caused the leak, it may cover the loss. Yet, if the insurer deems poor maintenance to be the underlying cause, the policy will not.
In some cases, auto insurance applies. However, in others, your home insurance policy may because the vehicle is on the policy. For example, some home insurance policies may have an add-on coverage option for your ATV. It may cover your watercraft. Or, it may simply cover all contents of the home, of which your car is one if it is in the garage.
Keep in mind, in some cases, if the policy does not name the item, though, it often does not provide coverage. The thing to remember is that all home and car insurance policies differ. Therefore, look closely at the fine print to see how each one will cover vehicle damage.
What to Do When You Need Coverage?
If you are unsure if you have coverage, call your home insurance agent to discuss your options. Many times, you can invest in coverage to add on a stored vehicle, such as a motorcycle. This can provide you with more of the protection you need when you are not using these items.
Also, check with your auto insurance carrier. Having a comprehensive plan may help alleviate some of your risks to a stored vehicle as well.
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