Does Homeowners Insurance Cover Car Damage?

Homeowners insurance can’t prevent accidents and damage from happening, but it may help you financially recover after an incident occurs. In some cases, what your home insurance covers is pretty cut and dry. But what happens when a car is damaged on your property or causes damage to your property? Does your homeowners insurance cover this type of occurrence?

In most cases, your homeowners insurance won’t pay for car damage, but it may provide other protections and cover other types of damage. Keep reading to learn more about homeowners insurance coverage for car damage and find out what is and isn’t covered.

What Will Homeowners Insurance Cover Related to Your Vehicle?

It’s important to understand when or if your homeowners insurance will cover damage related to your vehicle. Below is a look at several examples to help you better understand what types of damage may fall under your home insurance coverage.

Imagine you’re backing into your driveway and accidentally hit the garage door. Both the car and the garage door sustain damage. Do you file a claim with your homeowners insurance or your auto insurance? The answer is both. Depending on your policy and the extent of the damage, your homeowners insurance may pay to repair your garage door and any property inside your garage. However, it won’t pay for repairs to your car. To obtain reimbursement for that damage, you’ll have to file a claim with your auto insurance carrier.

If a car crashes into your house, who pays for the damage? In most cases, the driver’s auto insurance will cover damage to your property, including structural and personal property damage. However, the auto insurance policy limits don’t always cover the total damage to your property, so you may need to file a claim with your homeowners insurance to cover the additional costs.

Now, let’s say a tree falls on your garage and causes damage to your garage and your car and belongings inside. Who pays for the damage in this scenario? If the tree was on your property, you’ll have to file a claim with both your homeowners insurance (for the structural damage and personal property) and your auto insurance (for damage to your car). Note that car insurance doesn’t typically pay to replace personal property inside your vehicle. Instead, you need to file a claim for those belongings through your home insurance.

If the tree was on your neighbor’s property, it’s likely you’ll still have to file a claim with your homeowners insurance. Unless you can prove that the tree fell due to your neighbor’s negligence, the insurance company considers this to be a “peril” event. Just as if the tree was on your property, you will need to file a claim with both your home insurance and auto insurance companies.

There are a few exceptions to this rule. If you store an antique or collectible car in your garage, your homeowner insurance may cover the damage. It’s important to talk to your insurance provider to request an endorsement or rider to your policy to provide coverage for your vintage car. Additionally, if you’re taking an extended vacation and storing your vehicle in your garage, your homeowners insurance provider may consider it personal property and cover the damage. It’s best to refer to your specific policy or talk to your insurance provider for more details.

Will It Cover Damage in Your Driveway?

In nearly all cases, homeowners insurance doesn’t cover damage to your vehicles parked in your driveway. This includes damage from fire, hail, flooding, and falling objects, such as trees. It also doesn’t cover damage due to auto theft or vandalism.

Instead, you must file a claim with your auto insurance company. Depending on the type of car insurance coverage you have, it may cover the cost to repair these types of damage. Just like home insurance providers, auto insurance companies also set limits.

Let’s look at some examples.

If your car is stolen from your driveway, your homeowners insurance won’t cover the loss. Instead, you should file a claim with your auto insurance provider. In many cases, the comprehensive section of your auto insurance policy may cover this type of loss up to a set limit.

On the other hand, let’s say another car hits your car while it’s parked in your driveway. This is not covered by homeowner’s insurance. Instead, you need to file a claim with your auto insurance provider. If you’re not at fault for the accident, the other person’s auto insurance coverage should pay for this damage.

The Impact Your Home Insurance’s Liability Coverage Has on Car Damage and Accidents

The personal liability component of your home insurance helps protect you in case you’re liable for someone’s injuries or damage to someone else’s property. For instance, if a tree in your yard falls and damages your neighbor’s vehicle, you wouldn’t typically be responsible for this damage.

However, if the neighbor can prove the tree was dead and should have been removed, you could be responsible. This is where your home insurance liability coverage can protect you. Rather than having to pay for the damages out-of-pocket, you can file a claim with your homeowners insurance to make repairs to your neighbor’s property.

When Would You Consider Filing a Claim?

Just because you can file an insurance claim doesn’t always mean that you should. Before you call the insurance company, there are several things you should consider.

First, you’ll likely have a deductible. This is the amount you need to pay out-of-pocket before your insurance company will cover the remaining cost. These deductibles can range anywhere from $500 to $5,000. If the cost of the damage is lower than your deductible, there’s no need to file a claim because the insurance company won’t reimburse you for any portion of the damage.

It’s important to note that if you’re filing a claim on your home insurance and your auto insurance, you will have to pay the deductible under each policy unless your insurance policies are bundled with the same provider. In this case, the insurance company may only require you to pay one of the deductibles. Take the time to read your insurance policy or talk to your insurance provider to determine exactly what your deductible is.

Secondly, if you or another party’s auto insurance doesn’t fully cover the damage to your property, you may need to file a claim with your homeowners insurance to recoup the rest of the money for the damage. For instance, if a car runs into your home and the damage exceeds the policy limits of the driver’s auto insurance, you may need to file a claim with your homeowners insurance to secure the remaining funds to repair the damage.

Finally, if you have a special endorsement or rider on your home insurance policy, such as a rider for an antique car, be sure to check your policy. In many cases, these riders and endorsements come with special terms and conditions. For instance, it may have higher policy limits to consider.

When it comes to car damage, it’s likely your homeowners insurance won’t cover the cost of making these repairs. However, it may cover damage caused by the car. It’s important to understand the details of your homeowners and auto insurance policies, so you know exactly what’s included.

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Reviewed by Gerard Reczek

As an Excess and Surplus Lines Insurance Specialist, Gerard Reczek has over forty years of experience as a broker and underwriter for clients with hard to place risks, providing deep policy analysis and thoughtful client solutions. He holds MA Resident Individual Producer and Surplus Lines Broker Licenses.