With warmer temperatures arriving earlier than usual, water season is well underway. Whether you’re out on your boat every day or just on weekends, boat insurance should be top of mind during the summer months — and even beyond.
Boat Insurance on the Water
Naturally, you want to protect you’re boat while you’re using it. It’s important, though, to understand the associated coverages to ensure you are properly protected. Choose from standard and specialized coverages, including:
- Liability, which protects other people and property if you’re responsible for an accident
- Comprehensive, for incidents such as vandalism, flooding, and fires that may happen to your boat
- Collision, for instances in which you hit another object and damage your boat
- Fishing Equipment, which protects your gear on board or while it’s being transported on or off your insured boat
- Uninsured Boater, which protects you in case an uninsured boat collides with yours.
Boat Insurance off the Water
Protecting your boat while it’s on the water is an easy decision, but what about when it’s not on the water? What about when it’s sitting in a slip or even in your yard?
In fact, nearly 20% of all boat claims are filed between Labor Day and Memorial Day — when boating isn’t at its peak. Most of these claims are filed due to vandalism, theft, fire, or flooding, which can happen at any time, not just during warmer months.
And what about injuries? You’re most likely responsible if someone gets hurt on your boat, but did you know you could be responsible for injuries around your boat, too? If you bypass boat insurance, you won’t have liability coverage to protect you in cases that involve injury, which means you may be responsible for paying someone’s medical bills whether you’re using your boat or it’s sitting unattended.
Whether you store your boat in a marina or in your yard, you may want to rethink any decisions to cancel your boat insurance while it’s not being used.
What to Consider before You Buy Boat Insurance
Before you make any changes, be sure to check your policy and review it with your agent to make sure you’re getting the most for your money. Remember to look at what you have, then purchase boat insurance that covers your way of life. If you own a home, cars, a business, etc., you may want to consider a higher level of boat insurance coverage or an umbrella policy to protect your assets.
Swimming Pool Safety Tips
Arvada Insurance, Blog, Denver Metro InsuranceEach town will have its own definition of what constitutes a “pool”, often based on its size and the depth of the water. If the pool you are planning to buy meets the definition, then you must comply with local safety standards and building codes. This may include installing a fence of a certain size, locks, decks and pool safety equipment.
Let your insurance company know that you have a pool, since it will increase your liability risk. Pools are considered an “attractive nuisance” and it may be advisable to purchase additional liability insurance. Pool owners may want to consider increasing their liability limit amount to at least $300,000 or $500,000. You may also want to talk to your agent or company representative about purchasing an umbrella liability policy. For an additional premium of about $200 to $300 a year, you can get $1 million of liability protection over and above what you have on your home. If the pool itself is expensive, you should also have enough insurance protection to replace it in the event it is destroyed by a storm or other disaster. And, don’t forget to include the chairs, tables or other furniture around the pool deck.
Jet Ski Safety
Arvada Insurance, Blog, Denver Metro InsuranceKitchen Safety
Arvada Insurance, Blog, Denver Metro InsuranceYou already know kitchen safety is important — but you might not know how frequently kitchen mishaps happen. Did you know that cooking fires are the leading cause of home fires in the U.S.?
Prevent kitchen fires.
Beware of burns.
Banish bacteria that can make your family sick.
Store cleaners, soaps and sprays where children and pets can’t get to them.
If you keep them down low, lock them up or use a safety latch. Detergent pods are especially dangerous for kids, who can mistake them for food. If you have kids under age 6, use traditional detergent.
Benefits of Adding an Insurance Rider
Arvada Insurance, Blog, Denver Metro InsuranceThere are a number of benefits to adding a rider to your homeowners insurance policy.
Increased coverage: Most home insurance policies contain “sublimits.” A sublimit is essentially a limit within a limit. For example, you may have a $100,000 limit in personal property coverage for your belongings. But your limit on jewelry may be $2,500. That means if your piece is worth $7,000 and you don’t add a rider for it, your insurance company won’t pay out more than $2,500 on a claim involving that item.
Low or no deductibles: Your personal property coverage may have a high deductible. Riders, though, often have low deductibles or none at all. Let’s say you have a musical instrument worth $3,000, and it’s stolen. If your property deductible is $2,000, then you’ll only receive $1,000 on an insurance claim. But, if you added a rider for that instrument and the rider deductible is $50, then your insurance payout would be $2,950.
Accidental loss coverage: Many basic insurance policies won’t protect you against loss by “mysterious disappearance.” That means if you accidentally lost your wedding ring at the gym, you may not be covered. However, had you scheduled the ring, you would be covered even in the “mysterious disappearance” scenario.
What does diminished value mean on my car insurance?
Arvada Insurance, Blog, Denver Metro InsuranceDepending on its age and condition, a car that has been in a major accident generally has less resale value than the same vehicle in pre-crash condition. Even if the car repairs meet the highest quality standards, potential buyers are unwilling to pay as much for a car they know has been previously damaged.
This difference between what the pre-accident car was worth and the market value of the post-repair car is known as diminished value.
Note that diminished value doesn’t apply to all cars that have been damaged and repaired. Older model cars may actually be worth more after an accident because new parts have been substituted for many of the old parts.
Will my insurance company pay for diminished value?
A diminished value loss may or may not be covered, depending on a number of factors, including who was to blame for the accident, coverages provides by your policy and state regulations.
If the accident is your fault
Except in a very few states, the language in the collision section of the standard auto insurance policy clearly excludes coverage for diminished value when the policyholder is at fault in a crash.
That means that if your car policy includes optional collision coverage and you ram your car into a lamppost, your insurer will pay for repairs to the car, minus the deductible. However, in most cases, the company would not compensate you for diminished value.
If the accident was clearly caused by another driver
In all states except Michigan, if an accident is the fault of another driver, you would receive compensation for diminished value. This is because legally the third party has an obligation to make the victim of the accident “whole” again; in this case, to restore the victim’s car to its pre-accident fair market value.
In other words, the at-fault driver’s insurer is responsible for repairing your car and for paying you the difference between the car’s resale value before the accident and after the repair. This cost is usually covered by the liability portion of his or her insurance policy.
If the at-fault driver is uninsured and cannot pay for repairs, receipt of payment will depend on whether you have purchased uninsured motorist’s coverage. About half of the states allow recovery for diminished value under this coverage.
Proof of diminished value
In order to recover the amount by which the car’s value has been diminished (whether under the at-fault driver’s liability policy or under the policyholder’s own uninsured motorist or collision coverage), it is the policyholder’s responsibility to prove the repaired vehicle is worth less than before the accident. Payments may be reduced by the degree to which the policyholder was to blame for the accident.
Does auto insurance cover a rental replacement car after an accident?
Arvada Insurance, Blog, Denver Metro InsuranceIf you rely on your car, rental reimbursement is an inexpensive and invaluable option that you’ll want to consider adding to your auto insurance policy.
On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly. Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they’ve overlooked the policy option known as rental reimbursement.
Rental reimbursement coverage is available for a nominal extra amount with almost every auto insurance policy, although the option is often bypassed by those who are shopping for the lowest cost premium.
But there are a number of other ways to save money on auto insurance and, if your car is in the shop for an extended period, rental reimbursement can be a bargain. Even if your accident is another driver’s fault, the details of a claim may take time and you may have to wait get his or her insurance company to agree to pay for your rental car. With your own replacement rental coverage, there’s no waiting.
Comprehensive vs. Collision: What's the difference?
Arvada Insurance, Blog, Denver Metro InsuranceCollision is commonly confused with comprehensive. They’re both optional coverages and pay to repair or replace your car (if it’s totaled). But they cover separate events. In short, collision covers accidents (other than with animals) and comprehensive covers events that are beyond your control such as theft, vandalism, hitting an animal, fire, glass breakage or an act of nature.
Think of it this way: Collision is colliding with another vehicle or object (other than animals). Comprehensive is all other events. Accidents with animals are covered by comprehensive (and not collision) because these accidents are considered out of your control. Also, you can’t add only collision. You have to add comprehensive first and then collision.
When Do You Need Boat Insurance?
Arvada Insurance, Blog, Denver Metro Insurance4th of July Safety
Arvada Insurance, Blog, Denver Metro InsuranceThe start of summer is the perfect time to gather with family and friends for good food and fun times. This year, celebrate the adoption of the Declaration of Independence in a safe way. Our 4th of July safety tips cover a few key summer safety topics to keep you and your family safe this holiday.
Sparkler and Fireworks Safety
More than 50,000 fires are caused by fireworks every year. Take the proper precautions when operating fireworks.
Water Activity Safety
As July is one of the hottest months of the year, many families turn to water activities to beat the heat. However, even fun water activities have serious risks if the proper precautions aren’t taken.
Grilling Safety
July is one of the peak months for grilling fires. Enjoy grilling your favorite meals this summer while also keeping your family safe.
5 Answers About Renters Insurance
Arvada Insurance, Blog, Denver Metro InsuranceDid you know that almost two-thirds of residential lessees in the United States don’t carry renters insurance according to the Independent Insurance Adjusters & Brokers of America (IIABA)? A renters policy is more important, accessible, and affordable than you might think. But renters are often unclear about what renters insurance is and what it covers.
Here are the top 5 myths—and the facts—about renters insurance: