Reader’s Question:

Hi, Im from Odessa, Texas. Am I covered under the car insurance policy for natural disasters? Are there exceptions to the car insurance policies?

Joey

Odessa, TX

In Texas, most catastrophes are covered under the car insurance policy. However, earthquake and flood damage, are not covered by a standard policy and both are more common than many people realize. Check with your car insurance agent about special catastrophic policies for normally excluded conditions like floods and earthquakes. There may be exceptions listed and defined in your policy such as neglect, intentional loss, “earth movement,” general power failure and even damage caused by war. If you fail to take care or neglect your property, you may not be covered. Generally, if you intend to lose an object or damage your own property, there is no coverage.

One other exception that can be costly is the Ordinance or Law exclusion. Building codes established by governmental bodies that drive up the cost of rebuilding or repairing after a loss occurs may not be covered under your car insurance policy. So if you discover that current law demands higher grade or more expensive materials than the original ones being replaced when replacing damaged property, the new materials may not be covered for the full cost. Comprehensive insurance that covers you for fire and theft, generally covers you against damage by flood, earthquake, hail and other natural disasters, except when your car is overturned (which is considered a collision).