The insurance industry uses a lot of complicated lingo, and among them, one you may have heard on occasion is the idea of “negligence”. And while its definition may seem simple—the failure to take proper care in doing something—what it actually means to be negligent when it comes to your policy can be a lot more complicated.
In this blog, we’ll unpack what exactly constitutes homeowner’s negligence, the different types of negligence and their meanings, and what happens when you are considered negligent by your insurance company.
What is Negligence in Insurance?
Negligence Insurance Definition
Negligence refers to a policyholder’s failure to act reasonably in a certain situation, which then results in damages. An easy example of this would be noticing that one of the outlets in your home is sparking. However, instead of getting it fixed right away, you decide to leave it for a few weeks until you find the time to hire someone. That faulty outlet eventually starts a fire, destroying your home.
In this instance, you would likely not be covered by your homeowner’s insurance. This is because homeowner’s insurance is only meant to cover accidental or unexpected events. And while you may try to argue that you didn’t intend for the outlet to start a fire, your failure to get it repaired in a timely manner violated your “duty of care”.
Duty of care is a legal obligation in homeowners’ insurance policies that requires policyholders to maintain their property in a way that keeps it in reasonable and relatively safe condition. Knowingly leaving an outlet sparking in your home is not maintaining a safe environment, which means you’re ignoring your duty of care, thereby making you negligent.
There are four main types of negligence:
- Gross negligence
- Comparative negligence
- Contributory negligence
- Vicarious negligence
When you file a claim and your insurance company finds you negligent, they will take into account exactly how negligent you were. Let’s go over what each type of negligence means.
The Four Types of Negligence
Gross Negligence
Gross negligence is considered the most serious type of negligence, as it displays a severe disregard for the care of your property. An example of gross negligence could be failing to trim an obviously dead branch hanging precariously over your house, which then eventually falls and crashes through your roof and causes costly damages.
In instances of gross negligence, property damages are typically not covered by your homeowner’s insurance. Now, if you didn’t realize that the tree branch was dead, and it broke off during a storm, this would be considered accidental negligence and would be covered.
Comparative Negligence
Comparative negligence is when damages occur, but more than one party is found responsible. For example, let’s say you decide to not shovel your driveway after a snowstorm. You have a guest come over, and they try to pull into your driveway, but because of the snow, they end up crashing into your garage and damaging it.
You will be held partially responsible for not shoveling, but the guest can also be held responsible because they were driving too fast as they pulled in. Because of this, your insurance policy will still cover part of the damages, but the amount you receive will be reduced depending on the percentage of fault they attribute to you.
Contributory Negligence
Contributory negligence is a lot like comparative negligence, except it declares that if you were found at fault for the damages in any way, shape, or form, you’re not eligible to receive any sort of compensation. It’s an all-or-nothing scenario—but don’t worry about this one too much, because this rule doesn’t apply in Wisconsin, where, in instances when there are multiple parties involved, relies on comparative damages mentioned above. (This means that you can still get a partial settlement!)
Vicarious Negligence
To be considered vicariously negligent, a “supervising party” is held responsible for the actions of a “subordinate”, even if the “supervisor” wasn’t directly involved. For example, let’s say you hire a contractor to fix a hole in your roof. However, in order to save money, you accidentally hire a shady, unlicensed contractor off of Craigslist.
If this contractor comes and fails to adequately fix your roof, leading to it eventually collapsing, you may be held partially responsible for failing to properly vet the contractor and ensure they can actually do the job. Depending on the severity of the situation, you may not be covered at all by your insurance company.
What Happens When You Are Considered Negligent?
Luckily, your insurance company can’t just randomly accuse you of being negligent. When you file a property insurance claim, they will evaluate the situation, gather documentation, and piece together the circumstances leading up to the damages in order to determine whether or not you, the policyholder, are to blame.
Surprise! Insurance companies want to find you at fault. In some instances, it may be true that you are negligent, in other cases, it may not. Either way, they want to deny your claim and cite negligence so they only have to give you a partial settlement payment or none at all.
If you are found partly negligent and are given a partial settlement, let’s say it’s $5,000 for $15,000 worth of damages, you’ll be in charge of scrounging up the extra $10,000. If you’re found wholly negligent, all $15,00 dollars worth of damages will be on you.
If you feel as though the claim of negligence is false, or the amount they’re offering you to cover the damages is too low, you can always file an appeal with your insurer. If that doesn’t work, it may be best you go one step further and hire a public adjuster. They’re professionals when it comes to navigating the insurance process, and may be able to uncover details that prove your right to a proper settlement.
Found Negligent? Contact Us Today
If you’ve submitted a property insurance claim only to find that it has been denied by your insurance company due to them unjustly citing it as negligent, then contact us today. At Fortitude Public Adjusters, we will fight on your behalf to get you the rightful settlement you deserve.
Our knowledgeable team of experts will comb the fine print, gather documentation, and go back and forth with your insurance company. We know the complicated ins and outs of homeowner’s policies better than anyone and promise to have your back until the end.
