Bedbugs and Property Insurance

For some reason bedbugs are in the news now.  Apparently there is an epidemic of infestations.  (Perhaps there is just an epidemic of reporting of infestations – who am I to say?)

If your place is plagued by pests, how does insurance respond?

Short answer?  It doesn’t.

The standard home insurance policy excludes loss caused by insects.  That means that the damage caused by insects is not covered and the cost of extermination is not covered.

The standard commercial property form includes a similar exclusion.  Damage repair?  Not covered.  Extermination? Not covered.  Loss of income because of insects?  Not covered.

I understand a few insurers are considering providing coverage to restaurants and hotels.  I have yet to see a policy, though.