Will Homeowners Insurance Cover Damage from Falling Objects? An Analysis Based on a Real Case

Homeowners insurance typically covers sudden, accidental damage from falling objects, including rare incidents like ice falling from an aircraft. However, coverage depends on your policy's specific terms, exclusions, and whether you have replacement cost value or actual cash value (ACV) coverage. Following a high-profile incident in California, we analyze how insurance applies to such extraordinary events and the critical factors that determine your financial protection.

What Does a Standard Homeowners Insurance Policy Cover?

A standard homeowners insurance policy is designed to protect your investment from unforeseen perils. According to insurance experts, if an external object strikes your home and causes damage, it is generally covered. "If something hits your roof and causes an opening that allows water to enter the home, it is typically covered," says Anthony Lopez, CEO of Your Insurance Attorney in Miami. "It can be a UFO or a tree." This falls under the dwelling coverage portion of your policy, which protects the structure of your home itself.

This principle was tested in January 2024 when a large block of ice fell from a JetBlue aircraft and crashed through the roof of a home in Inglewood, California. While the airline faces a lawsuit, the homeowners' insurance is the first line of defense for repairing the property. This type of sudden, accidental damage is a classic example of what homeowners insurance is for. However, damage from wear and tear, deterioration, or neglect is typically excluded.

What Are Common Exclusions to Roof Damage Coverage?

Even with a comprehensive policy, certain events are specifically excluded. It is crucial to understand these exclusions to avoid coverage gaps.

• Weather-Related Exclusions: Standard policies often exclude damage from floods and earthquakes. For instance, if a hurricane destroys your roof, a standard policy would not cover it; you would need a separate flood insurance policy. Similarly, wind coverage often requires a separate deductible.
• Hail Damage: While hail damage is usually covered, it is frequently subject to a separate deductible. "Often, this deductible is between 1% to 5% of the dwelling coverage for hail-prone areas," notes Mallory Mooney, director of insurance sales and services at Insurify.
• Intentional Damage: Fire damage is typically covered, but intentional acts are excluded. "So if someone intentionally sets their house on fire, it would fall under the exclusion even though fire would otherwise be covered," explains Greg Martin, president of Think Safe Insurance in Florida.

How Is the Value of Roof Damage Calculated?

The amount your insurance pays for roof repair or replacement is not always the full cost. Many insurers are moving from replacement cost value (paying the full cost to repair with materials of similar kind and quality) to actual cash value (ACV). ACV coverage accounts for depreciation.

"Homeowners with ACV coverage are responsible for the difference between the roof’s depreciated value and the current cost of roof repair or replacement," says Mooney. This can leave you with significant out-of-pocket expenses, especially for an older roof.

Key factors that influence your roof claim payout include:

• The age and condition of your roof.
• Your policy type (RCV vs. ACV).
• Your deductible amount.
• The specific cause of damage.

What Practical Steps Should Homeowners Take?

To ensure you are adequately protected, proactive review of your policy is essential. Each claim is unique, and ultimately a claims adjuster would determine how coverage applied for that specific scenario, says Martin.

Based on our experience assessment, we recommend the following actions:

1. Review Your Policy Annually: Understand your declarations page, including your coverage limits, deductibles, and any specific endorsements or exclusions.
2. Ask About Roof Coverage specifics: Inquire whether your policy offers replacement cost or actual cash value for roof claims. This is one of the most important distinctions.
3. Consider Additional Policies: If you live in an area prone to floods, earthquakes, or severe wind, purchasing separate policies for these perils is necessary, as they are not covered by a standard homeowners policy.
4. Document Your Property: Keep a record of your home's condition and any improvements. This can be invaluable when filing a claim.

The most critical step is to reach out to your insurance agent to understand what is and isn't included in your policy and to ensure you're fully protected before disaster strikes.