Fence, Paint, or Pothole: What Insurance Secrets Are You Missing?

Published Date: 11/22/2024

Fence, Paint, or Pothole? Everyday Insurance Scenarios That Could Cost You Thousands

In the world of insurance, it’s rarely the big disasters that trip people up — it’s the small ones. A broken fence after a storm, a spill in your car, or a cracked window from the neighbor’s kids. These everyday mishaps may seem minor, but when they happen, the question is always the same: “Does my insurance cover this?”

In a recent episode of Insurance Hour with Karl Susman, Karl tackled a full lineup of listener questions that uncovered the hidden truths behind these “small” claims. From fences to potholes to paint spills, his insights shed light on how coverage actually works — and what to do before filing a claim that could raise your premiums.

1. The Case of the Flying Fence: What Counts as “Other Structures”

The episode opened with Dennis from Kansas, whose wooden fence was ripped apart by high winds during a storm. His question: would his homeowner’s insurance cover it?

According to Susman, the answer is most likely yes — but with caveats.

“Even though a fence doesn’t feel like part of your home, it’s usually covered under the ‘Other Structures’ section of your homeowner’s policy,” he explained.

Other Structures coverage typically includes detached items on your property — fences, sheds, gazebos, or detached garages. If they’re damaged by a covered peril (like wind or fire), you can file a claim under that part of your policy.

However, there are exceptions. In certain states, wind coverage is excluded or requires a separate policy, especially in tornado or hurricane-prone regions. The key takeaway?
✔ Always review your policy’s list of covered perils.
✔ Ask your agent whether wind or storm coverage applies where you live.
✔ Keep records and photos of your property for proof of damage.

2. Paint in the Backseat: When Accidents Aren’t Collisions

The next listener — who had accidentally spilled white paint all over the backseat of a new car — asked a painful but common question: Will my auto insurance cover a mess I caused myself?

Karl’s answer: It depends on the type of coverage.

Auto insurance generally has two physical damage coverages:

• Collision: Damage while your car is moving and strikes something.
• Comprehensive: Damage from non-collision incidents (theft, fire, vandalism, falling objects, etc.).

But what about self-inflicted mishaps, like paint spills?

“This one’s tricky,” Susman admitted. “It happened while the car was moving, but there was no collision. It might fall under comprehensive — or not at all.”

If coverage is extended, expect to pay your deductible. And yes, even a minor claim could increase your premium if it’s deemed “at-fault.”

The smarter move? Get an estimate first. If the repair cost is close to your deductible, it’s often not worth filing a claim.

3. When the Neighbor’s Kid Breaks Your Window

Another listener wrote about a broken window — courtesy of a neighbor’s child playing catch. Should they file a claim or simply ask the parents to pay?

Susman’s advice was refreshingly grounded:

“Start with the parents. This isn’t about punishment — it’s about responsibility.”

If the parents refuse, the homeowner may have options:

• File a third-party liability claim against the neighbor’s homeowner’s policy.
• As a last resort, file under their own policy — though Susman cautioned this could raise premiums for years.

Ultimately, the best outcome is the simplest one: open communication and goodwill. “It’s not about causing trouble,” he added. “It’s about fairness.”

4. The Pothole Problem: Who Pays When the Road Fights Back

Jamie, another listener, hit a massive pothole that destroyed her car’s suspension. The city wasn’t responding quickly — could her insurance help?

Susman’s answer: Yes, through your collision coverage.

“Even though it’s a pothole and not another vehicle, your car was moving when the damage happened,” he explained. “That falls under collision.”

In rare cases, some states treat it as comprehensive, but that’s the exception. If you have collision coverage, you can file a claim and your insurer will often pursue reimbursement from the city (a process called subrogation).

Still, Karl warned that the claim could impact your driving record and future rates — another reason to calculate whether the repair cost outweighs the deductible and potential surcharge.

5. Water Damage from a Clogged Drain: A Tricky Gray Area

One of the most complex questions came from a listener whose basement flooded after a clogged drain overflowed during heavy rain. Was that covered?

Susman didn’t sugarcoat the complexity:

“It sounds simple, but it’s complicated.”

If water entered due to rising groundwater — it’s considered flood damage, which is not covered under standard homeowners policies. If it entered because of sudden accidental water discharge (like a broken pipe), that’s typically covered.

But a clogged drain? That depends on whether the insurer views it as preventable maintenance or a sudden event.
Karl’s recommendation: file a claim and let the adjuster determine coverage — but first, know your deductible and ask your broker how a water claim could impact your renewal.

Pro tip: Homeowners policies may have separate deductibles for fire, wind, and water. Always confirm your limits before disaster strikes.

6. Garage Door vs. Car: Who Wins? (Spoiler: Neither)

Tim’s garage door malfunctioned and slammed onto his car’s hood. Should he file with home insurance or auto?

“Damage to your car is always under your auto policy,” said Susman.
“If it had hit someone else’s car — that’s your homeowner’s liability. But your car, your claim.”

He also used this as a teachable moment:
“Insurance is designed for big losses — not for dings, scratches, or dents,” he emphasized. Filing small claims can backfire if they lead to premium hikes or non-renewals. Instead, weigh the cost of the repair versus the long-term price of a higher rate.

7. Power Surges, Pools, and “Acts of God”

Carmen, another listener, faced a power surge that fried her pool pump. Would her insurer call it an “act of God” and deny coverage?

Susman laughed off the phrase:

“Arguably, everything is an act of God — but that’s not how insurance works.”

Instead, coverage depends on whether the surge was caused by an external event (like a lightning strike) or an internal one (faulty wiring). If caused by a covered peril, the damage could be paid under the Other Structures portion of the homeowner’s policy — since a pool pump isn’t part of the house itself.

He also introduced the idea of a catastrophe loss, or “CAT loss” — major events like storms or wildfires that insurers track separately.

“If it’s a CAT loss, your rates usually won’t go up,” Susman explained. “It’s not your fault — it’s Mother Nature’s.”

8. Fires, Toasters, and Lessons in Liability

Finally, a listener admitted to starting a small kitchen fire by leaving a toaster oven on too long. Embarrassing? Sure. Covered? Most likely yes.

Accidental fires are among the most common homeowner’s claims — and are covered as long as there’s no intent. Still, Susman cautioned that filing could affect renewal rates or even lead to a non-renewal in high-risk markets like California.

His bottom line:

“If you’re in a state where insurance is hard to get, think twice before filing small claims. Sometimes, it’s better to pay out of pocket than risk losing your coverage entirely.”

9. Lessons From the Mailbag: The Rules of Smart Claiming

By the end of the episode, a few consistent lessons had emerged:

✅ 1. Read your policy, don’t assume.

Every policy has exclusions, limits, and deductibles that can make or break your claim.

✅ 2. Your broker is your ally.

Before filing, talk to your agent. They can tell you whether the claim is likely to be covered — and whether it’s wise to proceed.

✅ 3. Don’t file small claims lightly.

Even covered claims can trigger rate hikes or affect future eligibility.

✅ 4. Understand “catastrophe” claims.

Natural events like fires, floods, and storms may not penalize you the same way individual losses do.

✅ 5. Insurance is for protection, not maintenance.

Policies are designed for significant, unexpected losses — not for wear and tear or minor damage.

The Takeaway: Being Prepared Beats Being Surprised

Fence, Paint, or Pothole might sound like an episode about random bad luck, but it’s really about something deeper: understanding what you’re paying for.

Insurance doesn’t exist to fix every problem. It exists to prevent financial ruin when the unexpected happens. The better you understand how it works — what’s covered, what’s not, and when to file — the more power you have to protect your home, car, and peace of mind.

“Insurance is about education,” Susman reminded listeners. “It’s about knowing what questions to ask — before you need the answers.”