Does insurance cover flood-damaged cars? Here's what to know
After having your home checked for possible destruction after a flood, another thing that you must work on is your car because it may have been damaged if it was submerged.
The thing that you might want to look at first is your respective insurance plan, which will help cover the cost of repairs. Getting your car back in shape may be expensive as parts may have been damaged or compromised.
Worried about the cost of repairs? You may want to check if your availed plan includes Act of Nature (AON), which protects your vehicle from damages caused by natural disasters, such as earthquakes and typhoons—events that could have not been prevented or foreseen.
How much would you get from the insurance?
Manny Peru, head of the Claims Department of Perla Insurance, shared with PhilSTAR L!fe that the coverage amount will be determined based on the assessment of the repair shop.
“If the cost of repair exceeds the vehicle's value, it is considered a total loss. In such cases, the car owner will be compensated by the insurance company based on the latest Fair Market Value at the time of the incident or the policy coverage, whichever is lower. Typically, for total loss, insurance will compensate the car owner in cash,” he said.
He noted though that car owners should get the consent of their insurance company before getting their flooded vehicle restored to avoid committing the “unauthorized repair” which may be a violation of the terms of the contract.
“It's crucial for car owners to wait for the insurance company's approval before proceeding with any repairs to ensure that the coverage remains valid,” he told L!fe.
How to report, what are the requirements
Peru said that car owners can report damages to their insurance company through their agents, or their company’s social media sites, email, and hotline numbers.
The initial requirements include the full name of the insured or vehicle owner, pictures of the vehicle, and updated contact numbers.
Malou Paragas, a sales associate of BPI MS Insurance advised owners to also prepare a notarized incident report or police report, official receipt and certificate of registration of the vehicle, and their driver’s license.
While there is no specific timeframe indicated in the contract, Peru stressed that car owners must report the damage to the insurance company within 24 to 72 hours (one to three days) after the damage happened.
“In general, vehicle owners should report the incident within a reasonable time frame, depending on the situation and any valid circumstances,” he said, adding that prompt reporting will help in processing the claims smoothly.
Another way is contacting the in-house emergency assistance team of the insurance company, such as the BPI MS’ 24-hour Emergency Roadside Assistance (ERA) hotline which can also help you during other types of emergencies.
“[This is where they can] get the appropriate advice such as wait for the towing service, the nearest police station/number and location, nearest motel or hospital where they can go, if necessary, etc.,” Paragas shared. Note though that this service is limited to private vehicles aged below 10 years.
If you need further information on how to manage cars in a flood, check out this guide on what to do before, during, and after the flood, and how much the estimated cost of repair is.