SUMMER SAFETY: ARE YOU INSURED FOR SUMMER FUN?
As the summer season
approaches, your plans are likely to include more entertaining, travel
and outdoor excursions. Sunshine may help you relax and recharge, but
before engaging in some recreational activities, you should reevaluate
your insurance risks and needs. These tips from the National
Association of Insurance Commissioners can help make sure you are
protected while you enjoy summer fun.
Pools and Trampolines
Before inviting friends and family over to enjoy
your pool or trampoline, know that either may increase your insurance
risk. Consider purchasing an umbrella policy in addition to your
homeowners insurance to increase your liability coverage. However,
because pools and trampolines can be dangerous, some companies may not
insure your property if you own them, or there may be policy exclusions
for liability for related injuries. An insurance company may also deny
coverage or cancel your policy if you do not follow the policy's safety
guidelines or fail to inform them when you build a pool or purchase a
trampoline. Check with your insurance provider for rates, discounts and
safety guidelines (such as installing a fence or locked gate). If you
lease a property with a pool, discuss your insurance options with your
agent or insurance company.
A boat insurance policy provides liability
coverage if someone is injured on your boat. It also covers bodily
injury inflicted on others and property damage to your boat. These
policies may be suspended during the months your boat is not in use.
Read your policy carefully and speak to your agent as some watercraft
policies have minimum or fully earned premiums associated with them.
There are three types of boat insurance loss
settlement provisions for damages to your boat:
- Actual cash value
(ACV) or market value: Your insurer will reimburse you for the current
value of the boat, minus your deductible, if you experience a total
loss. For a partial loss, the insurer will pay for the depreciated
value of lost or damaged items, minus your deductible.
- Agreed amount value:
You and your insurer have agreed upon a value of your boat at the time
you purchase the policy. This is the amount you will be paid if you
experience a total loss, minus your deductible. Damage from a partial
loss is paid on a replacement cost basis, minus your deductible. In
other words, no depreciation is taken on a partial loss.
- Replacement cost
coverage: In the event of a total loss, your insurer will pay to
replace your boat with one that is as similar to your boat as possible.
The personal property coverage of your homeowners
policy may cover a small boat for $1,500 or less in physical damage.
However, coverage for your liability risk is limited. A large boat will
be excluded from your homeowners policy for property and liability
coverage. Personal watercrafts, such as jet skis, often require a
separate policy that may be offered by your homeowners' insurer.
Alternatively, you may choose to purchase a policy from an insurer that
specializes in boat insurance. Talk with your insurance agent and get
quotes from other companies to understand your options.
All-Terrain Vehicles (ATVs)
ATVs are not covered by standard automobile
insurance policies, but your homeowners policy may partially cover
liability. Ask your agent if you have sufficient coverage on your
homeowners policy. If you do not, you should consider a separate ATV
policy. Ask your provider about age restrictions regarding who may
operate the ATV or if the policy covers friends and family. Make sure
you have the right coverage for your situation and intended use.
Whether you're leaving home for a weekend getaway
or a long road trip, be aware of what your homeowners or renter's
policy will cover while you're gone. Typically, your homeowners
insurance will follow you, protecting you even while you're not at
home. Off-premises' coverage means your belongings are covered anywhere
in the world. If you're staying at a hotel and your belongings are
stolen, your homeowners policy will provide coverage but the exact
coverage depends on your policy. In addition to your deductible, items
will typically have a limit on things like jewelry and furs. If you're
traveling with high-priced items, it's a good idea to get separate
insurance coverage for these items. Contact your agent or insurance
company to find out what's covered under your policy.
If you have questions or are confused about your
contact our Consumer
at (800) 852-5494, (501) 371-2640, or firstname.lastname@example.org.
Get smart about your insurance needs! More
auto, home, life and health insurance options — as well as tips
for choosing the coverage that is right for you and your family —
is located on the NAIC website: www.InsureUonline.org.