What is casualty insurance and what does it cover?
When it comes to residential landscape plants (trees, shrubs, lawns, etc.), casualty insurance generally covers losses caused by fire, lightning, theft, hail, vandalism, or other calamities. Landscape losses caused by wind, a tornado, or hurricane may not be covered, except to cover the cost to remove a fallen tree from a house or other structure and have the tree debris hauled away. The insurance policy often puts a cap on this type of loss. For example, the insurer may agree only to pay up to $500 for the removal of the debris from a tree that has fallen. Check you insurance policy for the details of your coverage. What if my insurance does not cover the loss? The general rule is that losses not compensated for by insurance or other means can be deducted as a casualty loss on a person’s federal income taxes. The Internal Revenue Service defines a casualty loss as “the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual.
