One of those almost impossible – I didn’t think it could happen to me – thank goodness I have insurance cases happens. A car crashes into your house. After the initial chaos of the event and making sure that no one is hurt, there is a whole mess to clean up and fix to return your home to its normal state. Depending on how much damage there is, this is often very costly. This is why insurance exists, but it may not be simple to figure out.
In this scenario, there are now two main resources that should be available to you: car insurance and homeowners insurance.
In a vehicle accident, the party at fault will be responsible for the damages. If someone hits your home with their car, and it was their fault, the first line of defense will be their car insurance policy. The problem here is that these policies often have maximum limits and may not be able to cover the full extent of the damage done to your home. If their car insurance does not cover everything, then you can turn to your own home insurance policy to cover the remaining costs.
In the case that the driver that crashed into your house does not have insurance, you could turn to your own car insurance policy if you have uninsured or underinsured coverage. However, this is not usually something that automatically comes with policies and you may have chosen not to add this onto your own policy. At this point, you could take legal action towards the driver but if they do not have car insurance they may not have the assets available to cover you for the damage anyways. Before taking legal action consider if you are likely to get back the money for both your house and any legal fees you may incur. It may cost you more than it is worth.
When the driver’s car insurance policy does not cover the full cost, your homeowners insurance will likely cover the rest of the damages. Homeowners policies will usually cover damages to the insured dwelling, including damage from vehicles, and you can read through your policy or call your insurance agent to be sure. When dealing with your homeowners insurance, it is important to be aware of the deductible you will have to pay. Your homeowners policy may come with a high deductible which means you might have to pay more out of pocket than you were expecting, especially if there is minimal damage. If you are pulling support from both your homeowners insurance and your auto insurance, you will be paying two separate deductibles, but if you use the same insurance company for both policies, they may be able to waive one of the deductibles for you.
If you were the one who crashed into your own home for whatever reason, the same options would be available. For any damages to your vehicle, you would act through your car insurance, and for damages to your home, you would act through your homeowners policy.
The general takeaway here is that life happens and it is important to be prepared for it. It is up to you how you want to insure yourself for cases like this, but if you want to have solutions lined up for this scenario or you are dealing with it currently then read through your policies and talk to an agent to make sure you are aware of the extent to which you are prepared and protected through your insurance.