Is Damage From Space Junk Covered?

Americans were enthralled this month as to where debris from the Upper Atmosphere Research Satellite (UARS) might fall.  Anyone wonder if the resulting damage to your home or vehicle is covered?

NASA deployed UARS, via the space shuttle Discovery, in 1991. After 20 years in orbit, it was expected to crash through Earth's atmosphere Sept. 22. While most of the debris from the UARS satellite will burn up as it accelerates through the atmosphere, NASA predicted several dozen fragments of debris to impact the Earth.

While claims are handled on a case-by-case basis--you might be surprised to learn damage from satellite debris, a.k.a. space junk, likely would be covered under most insurance policies.

Under a homeowners policy the damage likely would be covered as an accidental direct physical loss that is not otherwise excluded. Some insurance policies include the terms "falling objects" and "aircraft," which includes self-propelled missiles (meteors) and spacecraft. Damage to property inside the building would be covered if the falling debris first damages and penetrates the building roof or walls, then damages the property on the inside.

Damage to vehicles caused by a falling object such as satellite debris likely would be covered under comprehensive coverage. Comprehensive coverage, under many automobile policies, would include losses due to missiles, falling objects, windstorm, hail, fire, explosion, earthquake, water, theft, vandalism, riot, or being hit by a bird or animal.

Falling objects aren't covered by Collision coverage. With respect to repairable vehicles, Collision covers the cost, minus the applicable deductible, to repair your car after you collided, for example, with another car, an object such as a fence, or if you hit a deep pothole and caused damage to your car.

Some vehicle owners with a car that has been paid-off or an older car may drop Comprehensive and Collision Coverage to save money. If a satellite chunk hits your car and you don't have comprehensive coverage, repairs will need to be paid out of the owner's pocket.