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Summer is here, and due to climate change we're seeing more frequent storms that cause damage. If your fence is damaged due to a storm or another covered event, homeowners insurance will help you. However, damage from improper maintenance or normal wear and tear is not covered.
Does homeowners insurance cover damage to your fence?
Homeowners insurance covers your dwelling and personal property from damage, which is often referred to as insurance perils. Damage to your fence will be covered if it's the result of a covered peril.
There are three main components to homeowners insurance: dwelling coverage, personal property coverage, and personal liability coverage.
If something happens to your home, you can have it repaired or rebuilt under dwelling coverage. Your dwelling consists of your home and any other structures on the property, like a garage or shed. Most homeowners insurance carriers consider fences as "other structures" under dwelling coverage.
A peril is an event that may damage your home or belongings, like theft, fire, or a storm. The type of peril coverage you have depends on the type of homeowners insurance you purchased. Common insurance perils include fire, lightning, theft, ice, snow, sleet, smoke, vandalism, and freezing.
When damage to your fence isn't covered
Damage from wood rot, termite damage, rust, wear and tear, or lack of maintenance is usually not covered.
Floods, earthquakes, government seizures, mudslides, ordinance updates, sewer backups, and sinkholes are perils that will not be covered by homeowners insurance. Those will require add-on coverage using a rider policy or separate insurance.
Actual cash value vs. replacement cost
Homeowners insurance policies typically use "replacement cost" when paying out for covered damage. Replacement cost is the cost to replace the item with a new or used product.
Actual cash value (ACV) takes into consideration depreciation of the item. For example, if a five-year-old leather sofa is damaged by fire, the actual cash value considers the age of the sofa. Actual cash value is usually lower than the replacement cost value.
Flood insurance policies typically use actual cash value, but you can pay extra to use replacement cost.
Some insurance companies also use actual cash value for fence repair or replacement, according to American Family Insurance.
Check with your homeowners insurance to see which is used for fence damage repair. Some providers offer "guaranteed replacement cost" as a perk.
How to file a claim if your fence is damaged
If your fence is damaged, follow these steps to report and file a claim.
- Take pictures of damaged possessions and what caused the damage (fire, storm, etc).
- Contact your homeowners insurance company. Failure to timely notify your insurance provider can result in denying the claim.
- If damage is from flood, earthquake, or landslide where you have separate coverage, contact that insurance provider.