Homeownership comes with its fair share of responsibilities and unexpected challenges. One such area of concern is property line disputes, especially when it comes to handling insurance coverage for damages like fallen trees, fire, or flooding. Understanding your insurance responsibilities is crucial in ensuring financial protection against these unforeseen events. In this blog, we’ll break down some common questions about homeowners insurance and property boundaries.

Tree Damage Responsibility

If a storm causes a tree from your neighbor's property to fall onto your home, it's typically your own insurance that covers the damage. However, if the tree was dead or in poor condition and your neighbor was aware of the risk, their insurance may be responsible for the damages.

Fire Damage from a Neighbor's Property

Homeowners insurance generally covers fire damage that spreads from a neighboring property. In cases where negligence, such as an unattended candle or faulty wiring, caused the fire, your insurance provider might seek reimbursement from the responsible party’s policy.

Flooding from a Neighbor's Property

Proving negligence in cases of water damage due to a neighbor's poor drainage, malfunctioning downspouts, or landscaping changes can be challenging. It’s important to note that homeowners insurance typically does NOT cover flooding.  A separate flood insurance policy is required.

Shared Fence Repair Costs

If a shared fence is damaged in a storm, both homeowners usually split the repair costs. However, if one homeowner’s actions directly caused the damage, they may be required to cover the full repair cost.

The Insurance Claims Process

When damage is caused by a neighbor's actions, insurers follow a specific claims process. Subrogation is a term to be familiar with—this is when an insurer seeks reimbursement from the responsible party's insurance in cases of negligence. If negligence isn't proven, typically, the homeowner's policy covers the damages without pursuing the neighbor’s insurance.

Homeowners should take the time to review their insurance policies and consider additional coverage, such as flood insurance, for enhanced protection. It's always a good idea to consult an insurance professional to clarify coverage details and ensure you have peace of mind.