Common Misconceptions About Home Insurance and Auto Insurance
While home insurance and auto insurance policies are not meant to create any overlaps or gaps in coverage, they can be somewhat confusing when submitting a claim involving an automobile and property. Understanding the distinctions between home and auto insurance can help you make sure that there are no gaps in your coverage.
The most common scenario when these two policies are involved is when your car is broken into or stolen.
Your auto insurance will cover any damage to your car or the theft, but anything considered to be personal property inside the car is not covered. Your home insurance should cover those instead. This results in two separate insurance claims: one for the stolen or damaged car, and one for the personal property/belongings inside it. This unfortunately means that two deductibles are involved since each policy will have its own.
If you transport personal property on a regular basis, you will want to review your coverage in your home insurance policy because if your property is anywhere outside of your home, there is a higher risk of loss or damage.
Another common scenario when the two different policies overlap is when a car damages a house. Drivers can lose control of their cars and accidentally drive straight into a home, causing a significant amount of damage, injury, and potentially death. This is a clear auto liability case, but the homeowner of the damaged home could decide that it is easier to resolve any damages through their home insurance.
If however, as a homeowner you cause damage to someone else’s car somehow without operating a car, this would be a home insurance claim.
For example, if you are doing some tree trimming in your yard and a branch falls, damaging a car in the street, you are responsible for the damage, and you need to report this claim to your home insurance policy under the personal liability coverage.