Legal Guide

Freak Accidents - Are You Covered by Your Insurance Policy?

Freak accidents are a complex legal area since they aren’t standard. If it occurs at work, is it workers’ compensation, personal injury or something else? If there is a freak accident at your home, is it covered by homeowner’s insurance, liability insurance or something else? If a freak accident ends with a casualty, your life insurance may pay out, but so might other types of insurance. When there’s a freak accident, the major question is: are you covered by your insurance policy?

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Freak Accidents at Home

If you’re injured in a freak accident at home, your health insurance should cover the medical bills. If a visitor to your home is injured in a freak accident on the property, there is a good chance your homeowner’s insurance will cover it. However, if they’re violating the law, you’re typically not liable. This provides some protection for when someone is hurt in an unusual way trying to break into your home or using your recreational equipment without permission.

One challenging situation is when the freak accident is due to natural disasters. There have been cases when people discovered that the water damage due to a hurricane flooding wasn’t covered by homeowners’ insurance while wind damage was. The storm surge was classified as flood damage and something to be covered by flood insurance most home owners didn’t have. When the accident is classified as an “act of God”, there is a possibility the property insurance won’t pay out. And if there’s an earthquake in an area that doesn’t normally experience them, your property insurance won’t cover it.

Freak Accidents at Work

Freak accidents at work are generally covered by workers’ compensation insurance for the person injured. The employer would need to pay benefits if appropriate, and the person’s life insurance policy should come into play as well.

When someone is injured due to poorly designed equipment or failures in procedure that cause a freak accident, the designers, installers or anyone else involved in the incident may have to pay out from their own liability insurance. For instance, a person who is injured in an electrical conduit pipe accident while conducting work isn’t going to be able to win a case against your business, unless there is proof of negligence.

A Word of Warning on Accidental Death Insurance Policies

Some people get accidental death insurance policies thinking this provides extra coverage for their families. Younger people are more likely to die in accidents than older ones, but if you’re intentionally engaging in risky sports, the same accidents your life insurance doesn’t cover (think skydiving or cliff diving mishaps) won’t be covered by accidental death insurance coverage.

It would be advisable to get term life insurance if you need life insurance instead of an accidental death policy, and secure high deductible health insurance if you’re concerned you cannot pay the steep medical bills if you survive an accident.


Freak accidents are typically covered by existing types of insurance, though there may be fighting over liability. This is why it’s essential to double check your insurance policies to look for gaps in coverage such as flood insurance or umbrella liability insurance.

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