Boat Insurance
During the summer boats are an extremely popular activity for families. However, do you know if your boat has the proper insurance coverage?
Did you know that your homeowners or renters policy typically provides some small boat coverage? The coverage is very limited – it covers property damage only, can only be used on boats with less than 25 mile per hour horse power, and coverage is usually limited to $1,000 total for you boat, motor, and trailer. Liability coverage is not included, but it may be added with an endorsement.
Larger and faster boats such as personal watercraft such as jet skis and wave runners require a their own separate boat insurance policy. The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.
For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis.
Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.
Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.
Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.
Boat insurance also covers:
- Bodily injury—for injuries caused to another person
- Property damage—for damage caused to someone else’s property
- Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission
- Medical payments—for injuries to the boat owner and other passengers
- Theft
Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Higher limits may be available. Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home and car.
Boaters should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.
Boat owners should also inquire about discounts for the following:
- Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
- Coast Guard approved fire extinguishers
- Ship-to-shore radios
- Two years of claims-free experience
- Multi-policies with the same insurer, such as a car, home or umbrella policy
- Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons, or the American Red Cross.
If you would like to receive an insurance quote on your boat, please fee free to contact our office.
With summer quickly coming upon us, this means it’s time to lay out next to a pool, take in some sun, and just relax.
Not to put a damper on that, but did you know that according to The Pool Safety Resource drowning is still the second-leading cause of death for children under age 14?
So while we certainly hope you’re able to spend some time swimming and barbecuing with the family, we want to make sure you’re aware of the safety precautions you should take in and around swimming pools.
We have compiled a list of the top safety measures you can take from Pool Safely, American Academy of Pediatrics, and The Pool Safety Resource. Below you will find both an infographic and list of pool safety tips to help keep you safe.
Hope you have a fantastic summer!
Pool Safety Infogrpahic
Pool Safety Tips
- It’s the most obvious, but by far the most important: NEVER LET YOUR CHILDREN SWIM ALONE.
- Install a fence around the pool. The fence should be at least 4 feet high with a self-closing latch. If you are not using the pool, the gate should remain locked. (Remember that as a pool owner you’re responsible for anyone who comes onto your property and into your pool.)
- Keep safety equipment like life rings, shepherd’s hooks, and a first-aid kit in plain-view from the pool.
- Keep a phone with you by the pool at all times.
- Take CPR and basic first-aid classes so you know how to respond in an emergency.
- Remove all toys from the pool when you’re not using it so that kids aren’t tempted to reach for them.
- Teach your children basic water safety tips including how to find the nearest wall and how to pull themselves out of a pool.
- Secure the pool with a cover so that kids cannot access the pool when you’re done swimming. (Remember a pool cover should not be a substitute for a fence.)
- Install a surface wave or underwater alarm.
- If a child is missing, check the pool or spa first. Go to the edge of the pool and scan the entire pool-bottom and surface-as well as the surrounding area.
- Maintain the pool properly. Make sure all drains are functioning the way they should. Also, check the pool edges for loose tile or concrete.
THE TOPIC
With the recent earthquake in California, we through we would share some insight into earthquakes and insurance. Earthquake, at least for insurance purposes, is defined as a sudden and rapid shaking of the earth caused by the shifting of rock below the earth’s surface.
Earthquakes are not covered by a standard homeowners insurance policy. Coverage must usually be purchased via an endorsement or on a separate policy. Also, according to the U.S. Geological Survey the U.S. experiences approximately 20,000 earthquakes a year.
As development increases in seismically active areas so does the risk for loss when an earthquake hits. In July 2014 the U.S. Geological Survey updated its U.S. National Seismic Hazard Maps. The new maps reflect the best and most current understanding of where future earthquakes will occur, how often they will occur, and how hard the ground will likely shake as a result.
The new maps show that 42 states are at risk, with 16 states that have experienced earthquakes with a magnitude 6 or greater and which are considered at high risk.
Earthquake hazard is especially high on the West Coast, the intermountain west and in several active regions of the central and eastern U.S.
EARTHQUAKE INSURANCE COVERAGE
As there are no national earthquake programs, coverage is usually purchased through a private insurance company. (However, some states, like California, have put together state programs.)
- Private Insurance Company: Just like with flood insurance, there are several insurance companies that have put together programs for earthquake insurance you can purchase separately or in conjunction with flood and landslide coverage.
- Your Current Homeowner’s Policy. There are some states where you are actually able to purchase earthquake coverage through your homeowners insurance policy.
Items to Note:
-
- Your deductible is almost always a percentage of the coverage limit (typically 5%).
- Pay special attention to your policy if you purchase earthquake coverage through your homeowners insurance company. While you will have coverage for earthquakes, your policy will most likely exclude everything else related to land movement, including landslides/mudslides.
If you would like to find out more about earthquake insurance, please contact our office.
If you have children, it’s so important that you have them properly secured in their carseats while driving. While child safety seats are wonderful at preventing potential injuries in an accident, wrong usage of them is very common. When you think about it, even a small error in how the seat is used versus how it should be used can be the cause of serious injury or accident.
The following list of tips will help ensure you are using your carseat safely:
- Never put an infant in the front seat of a vehicle with a passenger air bag.
- Route harness straps in lower slots at or below shoulder level.
- Keep harness straps snug and fasten the clip at armpit level.
- Make sure the straps lie flat and are not twisted.
- Dress your baby in clothes that allow the straps to go between the legs. Adjust the straps to allow for the thickness of your child’s clothes.
- To keep your newborn from slouching, pad the sides of the seat and between the child’s legs with rolled up up diapers or receiving blankets.
- Put the car seat carrying handle down when in the car.
- Infants must ride in the back seat facing the rear of the car. This offers the best protection for your infant’s neck.
- Recline the rear-facing seat at a 45-degree angle. If your child’s head flops forward, the seat may not have reclined enough. Tilt the seat back until it is level by wedging firm padding such as a rolled towel, under the front of the base of the seat.
Do not use a car seat if any of the following apply:
- It is too old. Look on the label for the date it was made. Most carseats now have an expiration date where you are not supposed to use the seat past that date.
- It does not have a label with the date of manufacture and model number. Without these, you cannot check on recalls.
- It has been in a crash. If so, it may have been weakened and should not be used, even if it looks all right.
- It does not come with instructions. You the instructions to know how to install and use the car seat properly. Do not rely on the former owner’s instructions. Get a copy of the manual from the manufacturer.
- It has cracks in the frame of the seat.
- It is missing parts. Used seats often come without important parts. Check with the manufacturer to make sure you can get the right parts.
What does my credit rating have to do with purchasing insurance?
Everyone knows that credit scores are an evaluation of your payment history on a variety of consumer debt items like your home, credit cards, auto loans, etc. Credit scores are also used for a variety of other purposes such finding a place to live, getting a cell phone, and, most recently, buying insurance.
Insurance companies have found a direct correlation between one’s credit score and likelihood of filing an insurance claim at some point in the future. According to the actuarial tables and statistics the lower your credit score, the more likely you are to file a claim. So insurance companies are knowing using credit scores to generate an “insurance score” as part of the underwriting process. Your insurance score plays a large role in determining the premiums charged by your homeowners and auto insurance companies.
Therefore a solid credit history can go a long way to decreasing your insurance premiums. We recommend checking your credit score regularly and requesting that any discovered errors are immediately corrected.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—to provide you with a free copy of your credit report, at your request, once every 12 months. For more information, go to the Federal Trade Commission’s Web site on credit.
Insurance doesn’t only just have to be for protecting your home, auto, family or your business. Insurance is available for protection against almost anything as long as it poses a potential financial impact and you are willing to pay the associated premiums.
Below are five examples of the most unusual types of insurance policies ever written. They range anywhere from insuring a mustache, catching the Loch Ness Monster, or unexpected twins.
While we would certainly welcome the opportunity to write insurance for catching mythical creatures, our expertise will always be in protecting you and your family.
If you ever have a question or concern with your own policy, please don’t hesitate to reach out to our office.
1. Protecting Your Investment
It’s not uncommon for companies to pay celebrities a lot of money to promote their products. However, did you know those same companies often take out insurance policies on the endorser just in case something happens?
For example, Head & Shoulders insured Troy Polamalu’s hair for $1 million and Braun insured Heidi Klum’s legs for $2 million.
Also, while playing on Australia’s national cricket team from 1985 to 1994, Merv Hughes took out an estimated $370,000 policy on his trademark walrus mustache
2. Insuring Against the Improbable
There are a variety of strange policies available to protect yourself, your family or your company from improbable events. For example, expectant parents have taken out insurance policies to cover the potential financial impact of surprise twins or triplets.
One company purchased an insurance policy as a hedge for a promotion that offered one million pounds for anyone who could capture the Loch Ness Monster.There are even policies available for employers where two or more of their staff win the lottery and do not return to work. The coverage helps the employer to replace them.
3. Safeguard the Senses
In 2008, Dutch winemaker Llia Gort insured his nose for $8 million. Gort claimed his nose could distinguish millions of different scents. As a condition of the policy, Gort is prohibited from winter sports, boxing or fire breathing (yes, fire breathing).
Not to be outdone, chief taster Gennario Pelliccia insured is tongue for $14 million in 2009.
4. Preserving Valuable Assets
Entertainers and professional athletes will often take out insurance policies against the potential loss of income if they’re unable to perform due to injury or other accident.
Soccer star David Beckham had his legs insured for $70 million while “Lord of the Dance” Michael Flatley insured his for $40 million.
Music legend Bruce Springsteen insured his voice for $6 million and KISS front man Gene Simmons covered his tongue for $1 million.
5. Insuring A-Listers
Award shows consist of much more than just the red carpet and acceptance speeches. For example, Lloyd’s of London not only insures the Oscars show itself, but also provides over $40 million in coverage for the jewelry adorning all of the guests.
They have also insured a variety of unique items for movie stars. They have provided coverage against an actor’s eyes becoming uncrossed (they never did), actresses’ legs, a waistline, and even a mustache.
One studio even took out an insurance policy against the possibility that one of its actresses would get married before her contact was up.
Did you know there are different types of home insurance. Each policy type varies dramatically in the coverage it provides. The following types of homeowners policies are fairly standard across the country though they might differ slightly in coverage or name across different states.
If you own the home you live in, you have several policies to choose from. The most popular policy type is the HO-3, which provides the broadest coverage.
Policy Types:
HO-1: Limited coverage policy
This “bare bones” policy covers you against 10 named disasters (fire, lightning, and wind to name a few). It’s no longer available in most states.
HO-2: Basic policy
A basic policy that provides protection against 16 named disasters instead of 10. There is a version of HO-2 designed for mobile homes.
This “bare bones” policy covers you against 10 named disasters (fire, lightning, and wind to name a few). It’s no longer available in most states.
HO-2: Basic policy
A basic policy that provides protection against 16 named disasters instead of 10. There is a version of HO-2 designed for mobile homes.
HO-3: The most popular policy
This “special” policy protects your home from all perils except those specifically excluded.
This “special” policy protects your home from all perils except those specifically excluded.
Coverage Levels
Besides the different policy types, there are also varying degrees of claim payment. The following list outlines each one.
- Actual cash value.
This type of policy pays to replace your home or possessions minus a deduction for depreciation. - Replacement cost.
The policy pays the cost of rebuilding/repairing your home or replacing your possessions without a deduction for depreciation. - Guaranteed or extended replacement cost.
This policy offers the highest level of protection. A guaranteed replacement cost policy pays whatever it costs to rebuild your home as it was before the fire or other disaster–even if it exceeds the policy limit. This gives you protection against sudden increases in construction costs due to a shortage of building materials after a widespread disaster or other unexpected situations. It generally won’t cover the cost of upgrading the house to comply with current building codes. You can, however, get an endorsement (or an addition to) your policy called Ordinance or Law to help pay for these additional costs. A guaranteed replacement cost policy may not be available if you own an older home.Some insurance companies offer an extended, rather than a guaranteed replacement cost policy. An extended policy pays a certain percentage over the limit to rebuild your home. Generally, it is 20 to 25 percent more than the limit of the policy. For example, if you took out a policy for $100,000, you could get up to an extra $20,000 or $25,000 of coverage.Even though a guaranteed/extended replacement cost policy may be a bit more expensive, it offers the best financial protection against disasters for your home. These coverages, however, may not be available in all states or from all companies.
One of the questions we frequently receive from our Denver and Arvada clients is what coverage their homeowners insurance policy specifically covers.
A standard homeowners insurance policy includes four essential types of coverage:
- Coverage for the structure of your home.
- Coverage for your personal belongings.
- Liability protection.
- Additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.
1. THE STRUCTURE OF YOUR HOUSE
This is the primary coverage provided by a homeowners insurance policy and pays to repair or rebuild your home if it is damaged or destroyed by a covered claim. It’s important to note that damage caused by a flood, earthquake or routine wear and tear and not included in standard homeowners policies. Also, when purchasing coverage for the structure of your home, it is important to buy enough to rebuild your home.
2. YOUR PERSONAL BELONGINGS
Your furniture, clothes, and other personal items are covered if they are stolen or destroyed by a covered claim on your policy. The limit of insurance provided is usually a percentage (typically 50 – 70%) of your home’s dwelling limit.
Most insurance companies include off-premises coverage as part of the policy. This means that your belongings are covered anywhere in the world. Some companies limit the amount to 10% of the amount of insurance you have for your possessions.
It’s also important to note that expensive items like jewelry, furs and silverware are covered, but there are usually dollar limits if they are stolen. Generally, you are covered for between $1,000 to $2,000 for all of your jewelry and furs. To insure these items to their full value, purchase a special personal property endorsement or floater and insure the item for it’s appraised value.
3. LIABILITY PROTECTION
Liability covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets.
The liability portion of your policy pays for both the cost of defending you in court and any court awards—up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.
Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without a liability claim being filed against you. You can generally get $1,000 to $5,000 worth of this coverage.
4. ADDITIONAL LIVING EXPENSES
This pays the additional costs of living away from home if you cannot live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other expenses, over and above your customary living expenses, incurred while your home is being rebuilt.
Coverage for additional living expenses differs from company to company. Many policies provide coverage for about 20 percent of the insurance on your house. You can increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage, but for a limited amount of time.
If you have any additional questions on homeowners insurance; or, if you would like to receive a FREE insurance quote, please don’t hesitate to contact our office.