Comfort Line - Homeowners Insurance
This quarter our questions and answers segment discusses homeowners insurance as it relates to your heating and air conditioning systems.
What does my homeowners insurance cover?
In general, homeowners insurance provides liability coverage and coverage for property damage. It does not cover maintenance on heating or air conditioning equipment and does not cover replacement of equipment that has reached the end of its useful life. However, homeowners insurance may cover damages caused by a defective heating or air conditioning system. For example, if your boiler springs a leak and causes water damage in your basement, your homeowners insurance would not pay for a new boiler but it might cover the water damage caused by the leaky boiler.
Does homeowners insurance provide any coverage for my oil tank?
Oil tank coverage offered by a homeowners policy is in a state of flux. Historically, homeowners insurance covered environmental damage caused by a leaking tank to the extent contamination migrated onto a neighbor’s property or impacted the ground water on your property (third party coverage). Homeowners insurance never covered environmental damage caused by contamination on your property (first party coverage). Hart & Iliff has sold first party coverage for underground and aboveground oil tanks for more than 10 years. This coverage is currently offered through ProGuard and provides $100,000 of environmental clean-up coverage in the event of a sudden or accidental release.
Recently, many homeowners insurance companies have imposed a surcharge for third party coverage or eliminated it entirely. Homeowners insurance policies can vary from company to company. To be certain of your particular coverage, review your policy or discuss it with your insurance agent.
Should I verify that all contractors who work in my home have adequate insurance coverage?
Yes, it’s important to make sure contractors working in your home have adequate insurance. This coverage should include general liability and workers’ compensation coverage. The general liability coverage protects you in the event a contractor does negligent or defective work, and the workers’ compensation coverage in the event an employee is hurt on the job. Without these coverages, you or your homeowners insurance could be liable for problems or issues caused by a contractor working in your home.
How can I find out if a contractor has insurance coverage?
You can ask them to show you a certificate of insurance or visit the New Jersey Division of Consumer Affairs website at www.njconsumeraffairs.com/contractor.htm to verify that they have a Home Improvement Contractors License. All contractors must have proper insurance coverage to obtain this license.
