Personal insurance property damage caused by animal is reviewed

Guidelines that indicate the extent to which loss caused by animals to cars and residential property is covered under automobile and homeowners policies seem timely, in the wake of numerous recent news reports. The expense is almost always considerable when an automobile and a deer collide, and the event is given serious treatment in the news. However, such occurrences as the invasion of a home by an adventurous deer frequently are treated lightly by the media; but the consequences can be just as costly.

An insurance agent can expect a call as soon as an insured is aware of the scope of damage after such an occurrence. Familiarity with the coverage applicable can make for a ready response to the insured's "Am I covered?" inquiry. Damage caused by critters of other types may or may not be covered, however, and it is good to refresh our memories on the subject. Insureds generally agree that the pertinent policies treat the exposure reasonably.

Under automobile insurance, loss caused by contact with a bird or animal is covered, depending on the form used by the insurer, under either: other than collision coverage of the section identified as coverage for damage to your auto; or comprehensive coverage under the physical damage section. The scope of coverage is the same.

The insured who endured an encounter with a deer and carries the described coverage, but not collision coverage, is often surprised and pleased that the damage is covered. The occurrence may seem to have the elements of a collision. Anyone who has had the experience immediately knew, for example, that an unseen fast-moving projectile had hit from the side. The same is true of a large bird coming out of nowhere.

The nature of such an accident has been recognized from considerable experience by insurers, and handled most favorably for insureds. Claims are subject, of course, to the applicable deductible. Nevertheless, recovery can be substantial, nevertheless, as anyone will attest whose car has been hit from the side by a 150-200 pound missile. (I can!)

Determination of the extent of coverage for damage caused by animals to residential property is best accomplished by reference to Homeowners Special Form 3, by far the most widely written policy for owner-occupied dwellings. Coverage is provided under dwelling coverage and other structures coverage for direct physical loss to described property, subject to specific exclusions.

The exclusions pertinent to our quest are those for damage caused by birds, vermin, rodents, insects and animals owned or kept by an insured. Reliance is placed on dictionary definitions when words and terms are not defined in policies. George E. Krauss, author of Homeowners Analysis, published by The Rough Notes Company, Inc., researched popular dictionaries for the meanings of the words with which we are concerned. His findings are as follows:

A bird is "any warm blooded vertebrate of the class aves, having a body covered with feathers and forelimbs modified into wings."

Vermin are "noxious or objectionable animals or insects, especially those of small size; animals that prey upon game, such as coyotes, weasels, etc." Webster's Dictionary includes lice and fleas in its definition. Thorndyke-Barnhart Dictionary includes fleas, lice, bedbugs, rats and mice. Several courts have found raccoons not to be vermin and property damage caused by them not excluded.

Rodents are described as "belonging or pertaining to the order Rodentia, consisting of the gnawing or nibbling mammals, including mice, squirrels and beavers." Webster's Dictionary includes rats, squirrels and porcupines in its definition.

Insects are "(1) any animal of the class insecta, comprising small, air breathing arthropods having the body divided into three parts (head, thorax and abdomen), and having three pairs of legs and usually two pairs of wings; (2) any small arthropod, such as a spider, tick or centipede, having a superficial, general similarity to the insects."

An animal is "any such being other than man; a mammal," as opposed to a fish, bird, etc.

An exclusion for direct damage to property within the scope of dwelling coverage, caused by "animals owned or kept by an insured," would apply to either domestic or nondomestic animals owned or kept by an insured. Damage done, for example, by a dog owned by an insured or one kept by an insured for a vacationing neighbor would not be covered. However, if a deer or other animal not owned or kept by an insured damages property included under dwelling coverage, the policy applies. The most publicized occurrence, and a frequent one, is that of a deer crashing through a picture window of a residence and going on a rampage inside.

Personal property coverage (Coverage C under Special Form 3) provides coverage on a named peril basis. There is not a named peril for damage caused by animals. It is notable, however, that coverage may be found for such damage to valuable items of personal property if they are included in a scheduled property endorsement or are separately covered in a personal articles floater.

Copyright Rough Notes Co., Inc. Mar 1997
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