Reader’s Question:

What is the relationship between house mortgage insurance and underinsured/uninsured motorist offered by a vehicle insurance company in the state of Ohio?

Iola

Akron OH

The underinsured/uninsured motorist coverage protects the injured party in the event that the person at fault lacks sufficient coverage. When you think of it, UM/UIM coverage should not be related at all. In Ohio, there has been a controversy between a homeowner and vehicle insurance company or companies providing all forms of insurances. In most cases, a firm offering homeowners policy is also a vehicle insurance company. People were confused whether their homeowners policies also provide underinsured/uninsured motorist coverage. This confusion rose because of a case where a homeowner sought underinsured/uninsured motorist damages under his policy. The vehicle insurance company in that case could not be expected to pay UM/UIM coverage because that will be unfair on its part. The computation of the house mortgage premium did not take into account vehicle-related accidents. The state insurance agency had to intervene so that the matter won’t become big. If the court sided with the homeowner, the insurance market in Ohio would have been shaken. That could mean a lot of additional financial burdens for them. Consumers will also be impacted since insurance rates for both vehicles and homes would have risen to cover the possible damages from UM/UIM.