When dealing with the effects of eminent domain a homeowner’s protection, it’s important to understand a little bit of how the law works. At a high level, the powerful law is constitutional. Then comes state laws and municipal codes. The next level usually is regulations. And below all the above are contractual rules and rights. A homeowner’s insurance policy is, in essence, a contract, definitely out-powered by a state power such as eminent domain.
Eminent domain in Buena Vista, VA is the power of the government to take and use property, even private property, to reuse it for public purposes. The most modern frequent instance would be making a road or highway through private property. However, the law also requires the government to reimburse a private property owner for losses due to eminent domain at market value.
So clearly if a government agency has to take a home for a project, then the homeowner can only seek market value reimbursement. A homeowner’s policy won’t provide any protection.
However, what happens when an adjacent or nearby eminent domain project damages a home but doesn’t take the property? Depending on the damage and cause, a homeowner’s insurance policy may cover and financially protect from a loss in some instances. The insurance provider would then seek recovery from the government agency by civil action.
For the most part, eminent domain situations are usually not clearcut decisions, according to Stonewall Grace Insurance. Even seemingly obvious cases end up in litigation for desired endings of either side. If in the Buena Vista, VA region and you think your area may be impacted by eminent domain, consider a consultation with Stonewall Grace Insurance. Their trained agents can provide clear, accurate answers on what kind of damages would like to be covered and protected from with a good homeowner’s insurance policy.