Almost everyone knows someone who had a tree come down on their property in a storm...but what if a tree from MY yard falls on a neighbor's property, or if my neighbor's tree falls on my property....who's insurance pays up? Great questions, and here is the answer: If a storm causes your neighbor's tree to fall on your house, then your insurance pays for the damage. Wait, that doesn't sound fair! Sound fair or not, your neighbor's home insurance, under the dwelling portion of the policy covers only one house in this situation....his. And visa-versa for you. There are some policys that may vary however regarding who pays what when cutting up the tree and removing it.
As for the tree...what caused it to fall? We said that it was a big storm, right? "Cause" is a big part of who pays what. Now if your neighbor is practicing his putting skills (or the lack thereof) in his back yard, and then clubs a golf ball through your kitchen window....who's insurance pays there? In that case HIS insurance pays the bill. Why? If your neighbor CAUSED the accident, then your property damage is covered under the Liability and property damage portion of his home policy. Hey...a little bit of justice after all!
