SOME TYPES OF PERSONAL INSURANCE
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Boats and Yachts
Most homeowners policies provide limited
coverage for watercraft: coverage for the boat itself, equipment,
liability, and, in some cases, personal property. You may require a
specific boat or yacht policy. Overall, boats are rated on valuations,
usually based on marine surveys that identify conditions and potential
problems, current replacement cost, and so forth. Insurance policies
for boats and yachts generally have restrictions: the vessel must be
for pleasure and recreation use only (not business); navigational
areas are defined; the lay-up warranty requires that the vessel not be
used for a specified period of time during the year; and a
seaworthiness warranty requires that the vessel be maintained as
seaworthy and safe. In addition, there may be water-skiing exclusions
or restrictions and limited coverage for personal watercraft or wave
runners, hydrocycles, kit boats, and ski boats. Again, these are items
to be discussed with your Aon Reed Stenhouse insurance professional.
Umbrella policies can usually be extended
to cover watercraft.
a) Boat Insurance
For the most part, boat insurance
programs cover boats valued at $3,000 or more and which are between
16 feet and 25 feet 11 inches in length. Coverage is provided for
the boat itself, equipment, personal property, and liability.
b) Yacht Insurance
A vessel longer than 26 feet is
considered a yacht. There are two major coverages in yacht insurance
policies: hull coverage for property & protection and indemnity
(P&I) for liability. Hull insurance is very broad with few
exclusions. Yachts are usually insured on an agreed-value basis.
If you employ a captain or crew on your
yacht, you must have the maritime form of workers’ compensation
coverage.
Basic yacht coverage also includes boat
coverage, medical payments, and commercial towing and assistance.
There are optional coverages for hurricane protection and fishing
equipment.
Overall, boats are rated on valuations,
usually based on marine surveys that identify conditions and potential
problems, current replacement cost, and so forth.
Condominiums and Co-ops
Condominiums and co-ops require certain
property coverage. Most association policies go only as far as primer
coats on walls and ceilings, and bare wood floors. Your own coverage
should extend beyond your personal belongings to include woodwork,
kitchen cabinets, bathroom fixtures, and wall coverings, among other
things. Check with your association to determine who is responsible
for what.
Condominium owners need their own insurance above and beyond the
condominium’s master policy, which insures only the actual building.
In addition, condominium and co-op owners need loss-assessment
coverage. This is protection if the association policy is inadequate,
and the association must assess individual owners. Loss-assessment
coverage applies to property and liability losses up to a stated
amount, and must involve a peril insured in the unit owner’s policy.
The coverage under the corporation policy only covers a standard unit.
If you have installed any upgrades, then you require coverage for
betterments and improvements.
Farmowners policy
A package policy designed for family-owned
ranches and farms patterned after a homeowners policy. Coverages
include farm dwellings and their contents, barns, stables and other
farm structures.
Home based office
Running a business from home usually
requires computers, fax machines, printers, business furniture and
inventory. Most standard homeowners and tenants policies provide
coverage up to $2,000 for books, tools and instruments pertaining to a
business, profession or occupation, but only while these items are on
the premises.
Operating a business for financial gain
also changes the way your policy responds to liability losses.
To be sure you have adequate coverage for
your home office, talk to your broker and ask for an extension to your
policy.
Homeowners policy
A homeowners policy is a type of property
insurance. Property coverage is available for homes, condominiums,
seasonal dwellings and rented dwellings. Additional coverage is
available for watercraft, valuable articles, umbrella liability, home
based businesses, personal effects and more. Numerous versions of
homeowners policies exist, but most insurers provide broad personal
liability coverage for the owner or renter, including the spouse,
children and relatives residing in the home. Numerous endorsements can
be added, such as a personal articles floater for highly valued
jewelry or furs, and an inflation guard endorsement to maintain
adequate levels of insurance. The various forms provide coverage at
different levels for dwelling, other structures, personal property,
loss of use, additional coverages, personal liability, medical
payments to others. The various forms differ in regard to property
coverage but provide similar liability coverage.
Personal umbrella
A form of umbrella liability insurance for
individuals and their families. It provides coverage for (1) excess
liability over underlying liability coverage (homeowners, auto) and
(2) some of the liability exposures excluded by underlying policies.
Tenants Package
A tenants package policy is designed for
tenants of residential premises, such as houses or apartments, who do
not own the building in which they reside. The package does not
provide coverage for buildings, but coverage is afforded for personal
belongings, living out expenses (additional living expenses if you
must move out due to an insured peril) and personal liability.
INSURANCE
SOURCES
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RESOURCES
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