FALLING OBJECT

Falling Object – A Property Loss Cause Explained

Insurance coverages are designed to guard against unexpected perils, including losses caused by a falling object.

In plain language: When used in insurance, the term "falling object" refers to an object that has dropped or descended due to the force of gravity, leading to property damage or bodily injury. A common instance would be a tree branch falling on your car during a storm.

Technical definition: In the context of property and casualty insurance, a "falling object" is a risk or peril that is typically covered under most standard homeowners and auto insurance policies. It involves any object that falls and causes direct physical loss to the covered property, without the object having been propelled by a force other than gravity.

Picture this: You've parked your brand new car under a tree for shade on a hot summer day. You come back to find a hefty tree branch has broken off and crashed down onto your vehicle. The falling object has caused extensive damage.

TL;DR

The term "falling object" refers to any object that falls and causes damage due to the force of gravity.

Coverage for losses caused by falling objects is usually included in standard insurance policies.

A common mistake is assuming that any object that falls and causes damage will be covered, forgetting the requirement for direct physical loss.

It's best to clearly explain to clients the conditions under which damage from a falling object would be covered.

What Is a Falling Object in Insurance?

In insurance, a "falling object" is defined as any item that falls and causes direct physical damage to the insured property, without having been hurled by any force other than gravity. The falling object could be anything from a rock tumbling down from a hill, an air conditioning unit dropping from a window, a tree branch succumbing to a storm, to even an wayward spacecraft debris descending from the sky.

As it pertains to an insurance claim, the 'physical loss' usually means observable, distinct and demonstrable damage to a structural part of the building or the content within it. Generally, damage caused by falling objects is covered under Section I of the homeowners insurance policy (HO-3). Remember, as always, specifics can vary by policy and carrier.

Key Related Terms to Know

Gravitational Acceleration: – This is the acceleration due to gravity that causes objects to fall towards the earth.

Free Fall: – An object is said to be in free fall when it is being acted upon only by gravity.

Impact Force: – The force exerted by an object when it impacts another.

Terminal Velocity: – It is the maximum constant speed that a freely falling object eventually reaches when the resistance of the medium through which it is falling prevents further acceleration.

Common Questions About Falling Object

Does my policy cover damage caused by a falling object?

Standard homeowners and auto insurance policies typically include coverage for damage caused by falling objects. However, this often varies by state and carrier, so always check the specific policy form.

What qualifies as a falling object?

Any item that falls due to the force of gravity and causes direct physical loss to insured property qualifies as a falling object. This could be a rock falling down a slope, an air conditioner unit falling from a window, a tree branch breaking off and falling onto your car, or even a satellite re-entering earth's atmosphere and crashing into your backyard.

Would any damage caused by a falling object be covered?

The damage must be caused directly by the falling object to be covered. For instance, if a tree branch falls onto your driveway and your car is damaged because you drove over it rather than from the branch falling onto your car, the damage might not be covered.

Could I get a separate, specific falling object coverage?

While coverage for losses caused by falling objects is typically included as part of a standard policy, some insurers may offer separate, additional falling object coverage options which include higher limits or broader coverages. Check with your insurer or agent to understand your options.

Falling Object vs. Debris Removal

In insurance, "falling object" and "debris removal" can be confused despite having distinct differences.

Comparison Area	Falling Object	Debris Removal
Primary use case	Coverage for damage to property directly by a falling object.	Coverage for the cost to remove debris of a covered property after a loss.
Coverage / concept type	Direct physical property damage.	Additional costs associated with a covered loss.
Typical exclusions	Damage not directly caused by the falling object.	Costs exceeding policy coverage limits.
Who is most affected by errors	Policyholders who do not understand the direct physical loss requirement.	Policyholders who underestimate the cost of debris removal post-loss.
Common mistakes	Misunderstanding the meaning of direct physical loss.	Not understanding coverage limits for debris removal.

Real Claim Examples Involving Falling Object

Scenario 1: A homeowner installs a new chandelier in the dining room. Within a week, the chandelier suddenly crashes to the floor during dinner, shattering and causing damage to the dining room table. In this case, the policyholder's homeowners insurance covered the cost of replacing the damaged dining room table as it was a falling object but not the chandelier because the event was likely due to faulty installation.

Scenario 2: In another scenario, a company's commercial property policy was put to the test when a tree branch fell onto the building's roof during a windstorm. The roof suffered extensive damage, affecting inventory stored inside. The insurance policy covered the repair costs and inventory loss.

Scenario 3: During a severe storm, an insured homeowner's garden shed was pierced by a wayward metal rod picked up by the wind from a neighboring construction site. Despite the rod having been lifted by the wind, it was still considered a falling object since it descended due to gravity, damaging the shed. The home insurance provided coverage in this instance.

Limitations and Common Mistakes

Misunderstanding the principle of direct physical loss can lead to denied claims – the damage must be directly caused by the falling object.

Not all falling object damage might be covered – policy exclusions may apply based on the nature of the falling object or the condition of the property.

Coverage limits may impact the payout – standard policies typically have set limits for coverage, including for falling object claims.

How to Explain Falling Object to Clients

Here are a couple of scripts to help explain the definition of a falling object to different client profiles:

Personal Lines client "To keep it simple, a falling object in your policy refers to anything that the force of gravity could unexpectedly bring down damaging your property – like a tree limb falling on your car or a rock tumbling from a hill onto your roof. The key here is that your policy covers the damage if it's directly caused by the falling object."

Small Business owner "For your commercial policy, a falling object could be anything that falls due to gravity and causes property damage. We're talking about a scenario like air conditioning unit from the apartment above falling onto your outdoor patio, or perhaps a slating tile falling onto your shop sign, causing direct loss. It's what your policy is likely to cover when these sorts of unexpected incidents occur."

CFO or Risk Manager "With respect to insurance, falling object means an object that has fallen due to gravity causing direct damage to the insured property. This could mean a rock falling onto a company car, a branch dropping onto a office roof or even space debris landing on a parking lot. The typical policy wording requires that the object causes direct physical damage for a claim to be covered, and of course, specific policy terms and conditions would apply."