Media Advisory: Understanding the Insurance Implications Of The East Village Explosion

FOR IMMEDIATE RELEASE
New York Press Office: (212) 346-5500; media@iii.org

NEW YORK, March 27, 2015 — Damage to insured properties caused by the explosion in the East Village area of New York City yesterday, are likely covered by standard property insurance policies, according to the Insurance Information Institute (I.I.I.).

Homeowners insurance policies (including condos and co-ops) typically cover damage caused by explosion, fire, smoke and building collapse. Renters who have renters insurance also have coverage for their personal possessions. Both renters and homeowners will likely have coverage for the cost of additional living expenses if their homes are uninhabitable due to damage or destruction of the property.

Business owners have coverage under their business owners or commercial policy for damage to the buildings (if they own them) and inventory as well as for the personal possessions of their employees. Business income (also known as business interruption) coverage may also apply. Business income reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire or explosion. Business income insurance may also cover financial losses that occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises. Depending on the policy, a business may also have glass coverage if their glass store front has been destroyed.

Cars damaged by the explosion are covered under the optional comprehension portion of an auto insurance policy.

To arrange a media interview about the insurance implications of the East Village fire and building collapse, please call the I.I.I. press office at 212-346-5500.

RELATED LINKS

Articles: What is Covered Under a Homeowners Policy?; Insuring a Condo or Co-op; What Is Covered by a Basic Auto Insurance Policy?; What Is Covered by a Standard Home Insurance Policy? Business Insurance Basics; How Much Life Insurance Do I Need?

Facts & Statistics: Man-made Disasters

Video: Test Your Insurance IQ on Businessowners Policies

The I.I.I. has a full library of educational videos on its You Tube Channel. Information about I.I.I. mobile apps can be found here.

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500; www.iii.org