Why should I Insure Recreational Vehicles?

Summer is in full swing. For Paducah, KY this means you will start seeing packed golf courses in the cities and kids whizzing around on 4-Wheelers in the county.

Many people do not see any value in insuring their recreational vehicles. They are not as expensive or powerful as vehicles and are typically used on or around the residence premises. Consumers believe that their homeowners policies will provide coverage; however, they do not realize the limitations of the homeowners policy in regard to recreational vehicles.

First, an unendorsed homeowners policy limits when coverage is provided. The homeowners policy is typically designed to provide coverage for things like lawn mowers, golf carts and 4-Wheelers, but only when they are used for servicing the residence premises, assisting the handicap, or on the golf course.

Secondly, an unendorsed homeowners policy limits where coverage is provided.  The homeowners policy does not extend property or liability coverage once you leave the residence premises listed on the homeowners declarations page, the one exception being a golf cart on the golf course. Use “on the course” refers to being on the course or paths and is not to be confused with public roads going to and from the golf course.

Finally, an unendorsed homeowners policy limits what coverage is provided. The homeowners policy provides coverage subject to the insured perils under a homeowners policy. A homeowners policy is insuring perils such as fire, wind/hail, or theft. Collision is not a covered peril under a homeowners policy.

We work with insurance carriers that write policies specifically built for Golf Carts and ATV’s. The premium is often minimal and the property deductible is lower than a homeowners deductible. If you would like to talk to an agent about your risk in this area then please give us a call!

 

Should I Let Others Drive or Borrow My Car?

You might have heard your insurance agent say, “Insurance follows the car not the driver”. If your vehicle is insured, then someone borrowing your car with your permission would also be covered under your insurance policy. With that information, you may want to pause before letting anyone drive your vehicle. When you are trying to decide on letting someone borrow your car you more than likely are considering their personal driving habits and how much you trust them. But do you consider the impact it could have on your insurance if the borrower were involved in an accident in your vehicle?

Because insurance follows the car, your policy would act first in the event of an accident even if the borrower has their own insurance. Their insurance would not kick in until your limits were completely exhausted. Your policy is also the one that would take the rate increase that often comes with claim activity.

We don’t want to discourage you from being a good neighbor or exercising common safety practices. We all have had a friend move and need to borrow a truck or have taken a long road trip where the driving needed to be broken up into shifts.  However, as insurance professionals we do need to make you aware that when you loan your car you are also loaning your insurance.

 

What Liability Limits Should I Carry on My Homeowners Policy?

When you begin reading your insurance declarations page you may come across the phrase “Limits of Liability” listed at the top of the page. While this is not incorrect to call all coverages on an insurance policy limits of liability, this post is referring specifically to the Personal Liability listed on a homeowner’s policy. If you are wanting more information on the property coverage provided by your homeowners then you can find that here: https://www.bradshawweil.com/blog/a-basic-guide-to-your-homeowners-insurance/.

By definition Coverage E- Personal Liability covers 2 areas:

Bodily Injury- bodily harm, sickness, or disease, including required care, loss of services, and death

Property Damage- Physical injury to or destruction of tangible property, including loss of use.

This coverage applies to bodily injury or property damage that arises out of the insured’s personal activities that occur anywhere. The same coverage also applies at the insured location. This coverage does not include liability for any business activities the insured is involved in, no matter the location.

In order for a claimant to collect a payment from an insured’s Coverage E- Personal Liability they must be able to prove the insured negligent. Was a handrail loose that the insured should have had fixed? Is the tree limb hanging over the driveway dead and should have been removed? In the event that the insured was doing everything a prudent person would have done to maintain their property then the injured party would not have a claim under Personal Liability.

The question then becomes, “Why carry such high limits for Personal Liability if I am maintaining my home as a prudent person would?” The answer has multiple parts. First and foremost, Personal Liability Coverage also states that the insurance company will provide a defense for the insured at the insurer’s expense even when the charges are groundless.  Legal costs are high. Enough Said. Secondly, you cannot limit or know what someone could sue you for. In the event that they do sue you and win, you will need protection from your insurance policy.

Personal Liability is usually sold in limits of $100,000, $300,000 or $500,000. Bradshaw & Weil, Inc. strongly recommends at least $300,000 for most cases. You should consider your assets and net worth when deciding on the limit you purchase. You should also consider if you have additional liability in place in the form of an umbrella policy.

What Liability Limits Should I Carry On My Vehicles?

**Reminder as you read: The liability coverages discussed below are only taking into account bodily harm or property damage you cause to others. Coverage for your own medical injuries or your own vehicle would be found elsewhere in your policy if you have purchased them.

Each state government has set a minimum limit of liability insurance that a vehicle owner must carry in order to be considered legal. For insured’s in Paducah, KY the minimum liability limits set by the state of Kentucky are:

$25,000 Bodily Injury Per Person | $50,000 Bodily Injury Per Accident | $10,000 Property Damage Per Accident

We believe that some insurance is better than none; however, we do not feel that the limits required by Kentucky are enough to actually protect you in the event of an accident. As agents that have helped our clients through auto claims situations time after time we are convinced that an insured should carry NO LESS than the following limits of liability:

$50,000 Bodily Injury Per Person | $100,000 Bodily Injury Per Accident | $50,000 Property Damage Per Accident

When working with our clients or prospective clients we actually recommend they purchase one of the following two options:

1.) $100,000 Bodily Injury Per Person |$300,000 Bodily Injury Per Accident | $100,000 Property Damage  Per Accident

2.) $250,000 Bodily Injury Per Person | $500,000 Bodily Injury Per Accident | $250,000 Property Damage Per Accident

We understand that being able to pay premium is obviously a large factor in purchasing insurance. We also understand that some do not have assets great enough that require them to purchase a large amount of protection. But we do challenge you to consider the value your policy brings. The premium payment is really quite small compared to the protection provided when an auto accident occurs. Given the increase in distracted driving and the amount of time spent in your vehicle each week the odds are not in your favor to avoid an auto accident forever.

We also encourage our insureds to be realistic. Minor fender benders may be the most common types of accidents we see around Paducah, KY. Minimum limits may be enough in that type of scenario to cover expenses you are legally obligated to pay. But what if you hit someone on a motorcycle? What if you are responsible for a 3 car pile up? Vehicles are becoming more and more expensive as safety features and capabilities are added. Medical expenses are also increasing today. You purchase an insurance policy to protect you from catastrophic loss like one of the scenarios mentioned above. A benefit of insurance is also having it available for the minor fender bender; however, that type of scenario is not necessarily how insurance was intended to be used.