Flood Damage to Vehicle Parts in House

An Arkansas subscriber recently asked the following question:

Our insured recently sustained a flood loss to their home. Prior to the flood, the insured had removed the rear seats of their Lexus SUV and they were sitting on the floor of the garage and were damaged by the flood waters.

The flood adjuster has advised the insured that there was no coverage under the flood policy as they are parts of the insured vehicle and therefore excluded.

We are questioning the denial as the seats were no longer part of the vehicle but sitting on the floor so does that not make them contents?

ANSWER: The flood policy excludes motor vehicles and their equipment and parts; so even though the seats were removed and were in the premises, they are still parts to a motor vehicle, and as such are excluded. The denial is correct. Read More

Status of Wall-to-Wall Carpet, Drapes, and Lighting Fixtures

There are a number of items common to daily living that cause difficulty to insurers and their customers because it is not certain whether damage to such items should be covered by insurance on the dwelling or by that on dwelling contents. Read More