Bedbugs, termites and other pests are excluded from home insurance policies because they are considered an avoidable hazard. Bedbug infestations are considered a home maintenance issue, whereas fire damage or lightning strikes are not. As a former claims handler and fraud investigator, he has seen a lot and enjoys helping others navigate the complexity and opacity of insurance. Because renter’s insurance is designed to cover sudden and unexpected catastrophes, such as a fire or hurricane.
Here we have shared some common household pests, with details on how they invade your home and the type of damage they can cause, to help you decide whether pest insurance or pest control insurance is for you. The few bedbug insurance policies that are available are mostly for landlords and property managers and not for tenants. Companies and their insurers should be wary of similar attempts to inflate damages in the UK. And, unfortunately, the costs associated with the removal of bed bugs in the home are considered part of standard home maintenance and are not covered by either type of insurance.
This is because renters insurance is designed to cover sudden and unexpected losses, such as damage caused by fire or tornado. While most insurers do not cover damage caused by bugs, consequential damage, such as fire or flood caused by bugs chewing through a pipe or wire, may be protected. The bad news is that most insurers will not cover homeowners for damage caused by pests, although they will consider paying for damage caused by other wild animals. Businesses should therefore ensure that they have adequate risk management procedures in place and appropriate insurance cover to deal with this risk, which is beginning to outweigh their weight.
While not considered a maintenance cost, most renters’ insurance will also not pay for the replacement of an infested mattress that cannot be retrieved, nor will it cover additional living expenses if it has to be moved to another location during extermination. In some states, Assurant includes coverage for extermination and other bedbug-related expenses in its renters’ policies. Businesses are also advised to consider their general liability insurance policies and possible exclusions to ensure that they have sufficient business interruption coverage to deal with loss of income following an infestation. If it is too difficult to take these preventative measures, you may be interested in the peace of mind of pest insurance.