Question

Will my homeowners insurance cover my car if my garage burns down?

Answer
By Jacques Wong | Last updated: August 21, 2017

This is a great question, and it's one I get a lot in my day job as an insurance broker. The question is logical: if my homeowners insurance covers my personal property while it is on my premises, should that coverage not also naturally extend to the car in my garage? It is technically personal property, right?

Unfortunately, the answer is a counter-intuitive one. No, your car is not covered under your homeowners insurance if the garage burns down with your car inside it. The reason is that automobiles (and other vehicles that require licensing and are meant to be used on public roads) are excluded under your homeowners policy.

As a general insurance industry rule, objects that have their own specialized policy forms are excluded from other more general policy forms to avoid overlap. That specialized policy form (your automobile insurance in this case) would have to respond as the primary policy in the event of a loss, even when the it's parked in your garage.

The follow-up question that most people ask from here is: but what if I'm not driving it and it's in storage? Well, in that case, you may want to look at purchasing a vehicle storage policy. This gives you third party liability protection, as well as collision and comprehensive coverage, to use when it is damaged in a fire loss.

Share this Q&A

  • Facebook
  • LinkedIn
  • Twitter

Tags

Auto Insurance Personal Property Home Insurance Personal Lines

Written by Jacques Wong

Profile Picture of Jacques Wong

Jacques grew up around the insurance industry and began actively participating in 2013. Since then, he has gotten a Level 2 license, won Insurance Council of BC awards in 2015 and 2020 for academic excellence in the insurance licensing courses. He educates insurance professionals through PNC Learning and as a Thought Leader at ReFrame Insurance.

In his day job as an insurance broker, he helps businesses with creative risk management solutions and strategic advice when it comes to insurance.

More Q&As from our experts

Related Articles

Term of the Day

Omnibus Clause

An omnibus clause is a clause usually present in automobile liability insurance policies. It expands the coverage of the...
Read Full Term

Stay informed with Insuranceopedia!

The world of insurance can be complicated. Subscribe to the Insuranceopedia newsletter and stay in the know! Access expert content, industry term definitions and answers to your questions from knowledgeable insurance insiders. Arm yourself with what you need to know to keep your assets and your family safe.

Resources
Go back to top