INSURANCE MATTERS

By Russell C. Janecka

 

 

Boats, 4-Wheelers, Travel Trailers Need Special Coverage

Methods you can use to manage your risk. 

This is vacation season, which means people are out trying new experiences. Some are using personal watercraft, some are on all-terrain vehicles, go-carts and motorcycles. Some are borrowing travel trailers for a quick getaway. It would be wise to know whether such risks are covered under your present insurance or if additional coverage needs to be obtained.  Let's look at boats first. The Texas Homeowners policy provides liability coverage (for damage or injury to others) for the use of a boat, but with specific limitations.  An owned or rented watercraft with an inboard or inboard/outboard of 50 horsepower or less is covered. If it is larger than that, there is no coverage. This includes most jet skis.  A boat with more than 25 horsepower or a sailboat longer than 26 feet in overall length also is not covered under the Homeowners policy. It is possible to add a Watercraft Endorsement (HO-215) to your policy to provide liability coverage for boats that exceed these limits, but this coverage is limited. So, if you are a serious boater who likes to "haul bass," you need to provide yourself with a separate Boatowners policy. Doing so will also enable you to cover the boat for its value, wherever you take it. There is coverage under the Homeowners policy for the value of the boat while it is on land and on the insured premises only.  Now here's a big benefit, the Homeowners policy will provide liability coverage for you when operating a borrowed boat of any size or horsepower. That's borrowed, not rented. So call up Donald Trump to borrow his 80-foot yacht. You're covered. Ah, but there's the rub, be sure you have adequate liability limits.  On the other hand, folks on four-wheelers, go-carts, and off-road motorcycles have a huge limitation. If you own it, you are covered only on your residence premises. Note that I did not say ANY premises you own, but the premises at which you reside.  As a give-back, there is an exception here if the vehicle is used to service an insured location - such as a four-wheeler with utility attachments or a tractor, but not when used in a farming "business." An insured location is defined as one that is listed on the policy as an additional owned or leased acreage.  If you borrow a four-wheeler, go-cart or off-road motorcycle, your Homeowners liability covers your use of the vehicle on or off your land. But if you own it, you have liability coverage for its use only on your premises. Also, if you own it, your policy will cover its value under your unscheduled personal property only on premises. If you're concerned about that you should obtain a special policy made for these kinds of vehicles.  It says in the Homeowners policy that those guys in ugly shorts at the golfing range are covered using their golf cart, and swinging their clubs around, but once they leave the course drive down the road back home, there is no coverage for operating that golf cart. Not even just to cart one block down to the corner store and back.  One last area to touch on is the ownership of travel trailers and campers. These are vehicles that are subject to motor vehicle registration. As such, they are best covered under an auto type policy. The Homeowners policy gives liability protection for trailers when they are not being towed by or carried on a motor vehicle. Disconnect that hitch before letting the kids romp in and out of the travel trailer whether at home or at the camp.  While being towed, the auto policy gives liability coverage for the trailer following behind your covered auto. If you are renting or borrowing the trailer, you have coverage for the value of the vehicle if damage is a result of your negligence. Watch out. This liability coverage doesn't protect you for theft or vandalism or being struck by another vehicle. The best way to cover a trailer is for the owner to add it for value as another covered vehicle on his auto policy, or take out a special policy made for travel trailers and their contents.  If it's a camper that fits on the back of a truck, be sure to notify your agent to increase the value of the vehicle to include this add-on. This is an improvement to the vehicle and receives coverage by correcting the listed value of the vehicle. Be safe out there, and have a great summer.  Russell Janecka is a Certified Insurance Counselor. He is the owner of Janecka Insurance Agency in Victoria, and serves on the board of directors with Germania Insurance Companies. (361) 573-4475 e-mail: info@jiavic.com