In homeowners insurance, understand your coverage

(www.kansascity.com) - Do you have a vacation house or garage at the lake? Do you have insurance on it to cover ice or snow damage? Maybe not, if you have seasonal coverage, or your policy is with Farmers Mutual Insurance of Hermitage, Mo., as mine was.

Last November, we received 4 to 6 inches of ice and 12-14 inches of snow at the lake during the night my roof collapsed. This is a one-bedroom apartment and garage. When I called my insurance agent to report the collapse, he told me I was not covered for this damage.

When I purchased the policy, I told him I wanted to cover the building so if anything happened, it would be covered by insurance. I asked why I didn’t have this coverage added into the policy? I was told the protection could not be added because my house was a seasonal property. He also said the storm was not unusual weather for this lake area.

I’m retired, go to the lake every month and I live in my home while I’m at the lake. I pay an electric bill every month. I pay taxes on it. I paid for 12 months of insurance. How do you call my home seasonal?

I filed a complaint with the state insurance department. Again, I was told that my policy did not cover damage from ice and snow. I want to know why the insurance company didn’t tell me that the first day I got the policy?

I received a registered letter in March from Farmers Mutual telling me they have canceled my home insurance policy at the lake and would not renew it. No reason given. What do you think of this? — O.L., Kansas City

Dear O.L.: It’s unfortunate that you didn’t ask these questions before you purchased your policy. We also wouldn’t want to continue with coverage that didn’t provide the needed protection.

It’s important that homeowners understand what type of coverage they have and what is and is not covered.

We had never heard of seasonal coverage, so we asked several insurance agents about this. Many insurance companies don’t sell seasonal coverage; often when consumers have a lake home, it’s covered as a secondary residence under their existing homeowner’s policy.

But that can also depend on what state your secondary and primary residences are located in. Before buying a policy on your secondary residence, make sure you fully understand what is covered and that you fully disclosed to your agent how you use the property. For example, certain policies are voided if you rent your secondary residence. Hickory County Farmers Mutual in Hermitage said you had applied for and obtained a fire and extended coverage policy based upon the information provided to the agent.

Determination that a home is seasonal is based on use of the property. If a structure is occupied for habitation on only a part-time basis, it is seasonal.

G. Darlene McLerran, company manager for Farmers Mutual, also said that many insurance companies will never issue a policy on any home occupied on a “less than a full-time” basis. In fact, most homeowners’ policies suspend some or all coverage for dwellings that are unoccupied for more than either 30 or 90 consecutive days.

The policy that was issued to you is a “named peril” policy and covers only the risks of loss specifically listed in the policy. These listed risks did not include collapse or damage resulting from the weight of ice or snow, we were told.

McLerran said that you apparently were aware that this policy did not cover any loss resulting from collapse or damage caused by the weight of ice or snow. You were also free at all times to seek insurance from another company.

As to the subsequent nonrenewal of your policy, very few, if any, insurance companies will insure or continue to insure a damaged structure.

McLerran said that while the insurance company is sympathetic to your misfortune and dilemma, it owes an obligation to all of its policyholders to pay only for losses covered under the terms of its policies.