subject: Special Insurance Conditions Of War And Disaster [print this page] There are special insurance policy conditions that govern how your policy is enacted. Many conditions involve how property is covered, and then still other conditions look at liability coverage. Here are some funny conditions you may know or heard of.
Some conditions are very crafty and are designed to limit conditions or define what constitute an event. Sometimes you may need to purchase extra coverage, due to definitions that are used. Insurance is standardized in the United States, so standard coverage tends to roughly provide the same benefits. However, this coverage is often included with restrictions. There are also standard exclusions that may apply to your policy. The best way to safeguard against accidental gaps in your coverage is to talk with a professional. Here is a disclaimer as well- since everyone's situation is different, you should consult with professionals in your area to learn more about your particular situation. You should not use our information here without finding professional advice since it may not be accurate to you.
Nuclear, War, and disaster
Believe it or not, most policies do not cover damages done by acts of war or by nuclear damage. Simply put, they consider these events uninsurable. This is a national wide clause. However, other disasters have difference conditions, and some disaster types require separate types of coverage, depending on who your provider is. Even nuclear damage is defined as houses that catch fire because of the nuclear blast- hence houses and areas affected by radiation are also not covered.
This is an issue if you live by a nuclear facility and there is a leakage. There may be special circumstances where by congressional act, conditions and liability may change. This occurred with the outset of Hurricane Katrina. There was so much property damage that insurance agencies were overwhelmed. Hence, regulation of the insurance industry plays a large role in the events of natural disasters-this could be by state level as well. That is why you should check with local agents to learn more about specific coverage, rather than relying on public sources of information. Many private property owners were caught without flood insurance, for example, and they assumed all losses of their privately owned structures once the waters receded.
Similarly, acts of terrorism are not covered by insurance, since they are deemed beyond the scope of reasonable events. Can you imagine if someone had to insure the events of September 11, 2001? The insuring agency would be broke! What occurred was a government and publically funded initiative took place to provide compensation for the victims.
However, in the event of volcanic eruptions, the insurance industry has standardized the definitions of the condition. A volcanic event is constituted to equal 72 hours. It may seem odd, but there is reasoning behind this definition. This definition was created to consolidate the claims from multiple eruptions within one period. This is important to the insurers because the claims will be put together better (so less paperwork).
by: Casey Trillbar
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