Garage Keepers Coverage In Texas

[Cadmon]

Can you please tell me why the Garage keepers coverage does not cover hail damage to my clients autos?  We recently had a hail storm in Texas and my carrier is saying that they will not cover any weather related damage? Thank you very much.

[felabeorbt]

Michael,

Your GK policy is there to protect YOU from damages that you would be legally liable for. The fact that the cars were parked in your lot for repairs and suffered damages from a hail storm doesn't make YOU liable for those damages. Any more than if the car was parked at the grocery store while the owners were shopping and a hail storm blew through wouldn't make HEB/Krogers/Safeway liable for the damage. "Stuff" happens.

The physical damage coverages usually found in the GK policy are for things like theft, backing into a car, pollution(like acid fumes from your operations), etc. Things that are caused by people or the result of negligence. Weather events are "Acts of God" and specific first-party coverage has to purchased for those events. The individual owners would have to file on their own policies for any damages from the hail. If they did not have coverage, that is not your fault.

Hope this helps.

Kevin Hromas

JD, EGA, RPA, PLCS, HCRI-R/C, Appraiser/Umpire

Kevin Hromas & Associates

... A Division of US Insurance Information LLC

www.KevinHromas.com