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Apocalypse Insurance

March 23, 2017 Leave a comment

Apocalypse Insurance

 

All this month we are delving into the “home warranty” commercial that depicts someone asking their insurance agent if a broken central air unit was covered. The agent explains there is no coverage but that there is coverage for other calamities such as volcano & zombie apocalypse.

The capper on the commercial is that the agent states there is coverage for zombie apocalypse. Now granted, “zombie apocalypse”, isn’t a specific peril excluded on a standard home insurance policy. We can, however, distill/classify the event into an event that may or may not be covered.

My opinion is that a “zombie apocalypse” is essentially a societal breakdown, a “riot” or “civil commotion” of sorts. It could also be an “undeclared war” or “military-like action”. Let’s break these down:

A standard homeowners policy has a list of perils insured against as well as a list of excluded perils. The dwelling itself is covered for basically everything except what is excluded/limited on the policy. “Riot” & “civil commotion” is not excluded, but “undeclared war” & “military-like action” are. Same goes for the personal property coverage. There are a few other exclusions to consider as well. “Power failure off residence premise”, “intentional loss”, & “neglect” are exclusions that could come into play with such an event. It is more likely that these last exclusions would most likely be the reason for a loss to property.

There are companies (and individuals) willing to sell “zombie apocalypse” insurance at rock-bottom prices. And such policies need to be taken as such, a novelty.

 

Contact Us!

At Marsilje & Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

 

Categories: Uncategorized

Volcanic Eruption

March 16, 2017 Leave a comment

Volcanic Eruption

 

All this month we are delving into the “home warranty” commercial that depicts someone asking their insurance agent if a broken central air unit was covered. The agent explains there is no coverage but that there is coverage for other calamities such as earthquake, volcano, & zombie apocalypse.

“But I don’t live near a volcano!” is what you might be saying. True that the majority of homeowners do not live near a volcano or areas of possible volcanic activity. As we have mentioned, most standard homeowners policies are that – standard – which means that certain perils or coverage may not apply to everyone.

As we learned last week, earth movement before/during/after a volcanic eruption is not covered automatically on a standard home policy but coverage can be added via endorsement. If can be covered via endorsement, then surely the volcanic eruption itself can be covered via endorsement – or can it? As a matter of fact, it is. “Fire or lightning” is covered, “explosion” is covered,  & “smoke” is covered except that which is the result of agricultural smudging or industrial operations. “Volcanic eruption” is indeed listed as a covered peril, other than loss caused by earthquake, land shock, or tremors (for which an endorsement can be purchased).

The Insurance Information Institute fleshes out a little more as to what you could expect from your insurance carrier as far as loss from volcanic eruption to your property, your automobile, & your business insurance.

Contact Us!

At Marsilje & Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

Categories: Uncategorized

Earth Movement

Earth Movement

 

All this month we are delving into the “home warranty” commercial that depicts someone asking their insurance agent if a broken central air unit was covered. The agent explains there is no coverage but that there is coverage for other calamities such as earthquake, volcano, & zombie apocalypse.

Last week we learned that water back up isn’t automatically covered for sewer/sump. One coverage that is becoming less and less a novelty but rather a necessity in the Midwest is coverage for earth movement (earthquake). Thanks to the New Madrid Seismic Zone that reaches from Missouri to Illinois and moves as far east as Tennessee, we Midwesterners have felt a tremor or two in recent years.

A standard homeowners policy does list “earth movement” as an exclusion:

Earth Movement, meaning earthquake including land shock waves or tremors before,
during or after a volcanic eruption; landslide; mine subsidence; mudflow; earth sinking, rising or shifting; unless direct loss by:
(1) fire;
(2) explosion; or
(3) breakage of glass or safety glazing material which is part of a building, storm
door or storm window; ensues and then we will pay only for the
ensuing loss. This exclusion does not apply to loss by theft.

So fire, explosion, theft, & breakage of glass is still covered as the result of “earth movement”. Is there a way to purchase coverage for “earth movement”? For many home insurance carriers, it can be added via an endorsement on the home policy.

Most endorsements add language that it supersedes the exclusion on the home insurance policy for “earth movement” that includes land shocks, tremors, & movement which occurs before/during/after a volcanic eruption. But it also comes with some limitations and exclusions of its own.

A single “earth movement” event includes one or more land shocks within a 72-hr period. This is a good thing, otherwise each shockwave would have to be considered one claim and the hassle with proving which shockwave caused what damage is eliminated.The policy deductible does not apply, but rather a special deductible which is a percentage-based damage deductible. You can choose what percentage of the covered damage total you wish to be responsible for. So for example, if you chose a 10% deductible and the total covered damage was $10,000 – your deductible would be $1,000 (10% of $10,000). $100,000 in damage? $10,000 deductible. Masonry veneer is not covered for “earth movement”, and that damage would be subtracted from the total damage amount of the claim.

So yes, like the sump/sewer water back up, “earth movement” can be covered on a home insurance policy.

Contact Us!

At Marsilje & Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

Categories: Uncategorized

Water, Water

Water, Water

There has been a recent commercial for a home warranty program where the “insurance agent” tells the client that they are covered for a lot of things but not for mechanical breakdown (their central air unit broke down).

One thing that is bothersome is the perils the “insurance agent” claims are covered by the policy. So this month we thought it would be a good idea to go through some of those perils to see if there is indeed coverage.

Gleaning information from an article posted by Grange Insurance, this week we discussed water and what is/is not covered on a standard home policy.

Water Back Up

  • Is not automatically included on a standard home policy
  • Covers damage from sump/sump pump failure or similar equipment not considered a part of the plumbing system (“water from within a plumbing system” is covered)
  • Not too expensive to add, depending on coverage level it could be as low as $35/yr
  • You can choose the amount of coverage, from $1,000 to upwards of $100,000 depending on the carrier
  • It can happen to you. Whether you live high on a hill or the surrounding easily drains water away from the premises, there is still a chance that water could back up
  • If your home is uninhabitable due to water back up and you have the coverage, the Loss of Use coverage on your policy kicks in

 

Tips to Avoid Back Ups

  • Don’t pour grease/oil/food down the drains
  • Use toilet paper/flushable wipes
  • Replace metal pipes with plastic ones
  • Have your sump pump serviced on a regular basis
  • Get a sump pump system that has a battery back up in case the power goes out

 

 

Contact Us!

At Marsilje & Vander Plow Insurance Agency, we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 616-396-1497 or send us a note at marsiljeins@gmail.com. We want to help you meet your goals, and make sure what’s important to you is protected!

Categories: Uncategorized