Are you adequately insured? (image via wikipedia)

Most of the time when people talk about specialty insurance, they are talking about insurance coverage that provides companies with specialized protection based on their industry or on specific risks they are face.  However, there is also a side of specialty insurance that is all about covering personal interests.  Many people believe that their auto, renter, or homeowner’s policy provides coverage for these specialty risks and depending on the policy, it might.  But in many cases these specialty items actually indicate a gap in coverage that leaves them open to liability claims and property loss.  To help you understand if you have any of these specialty risks, here is information on some of the most common types of specialty personal coverage.

Boat/Watercraft Insurance

If you own a boat, you may have some coverage under your existing homeowner’s or renter’s policy.  Many companies will provide limited coverage for small boats like canoes as part of their base homeowner’s protection but it would be a mistake to assume any and all watercraft related risks are covered this way.  Even if minimal property coverage is included in your homeowner’s policy, it is unlikely that liability protection will be included.  Additionally, if you have a boat with an engine that can go more than 25 mile per hour, you may need to obtain additional coverage.

Flood Insurance

While most homeowner’s know that damage caused by floods is not covered by their homeowner’s insurance policy, there are still many homes that remain unprotected against this specialized risk.  Additionally, flood damage is also excluded from most renters insurance policies which means that even renters need to secure this specialty protection, especially if they are in a flood zone.

Earthquake Insurance

Damage from earthquakes and other natural disasters is generally excluded from personal insurance coverage which means it must be purchased separately in order for you to be protected.  Most earthquake policies or riders carry a much larger deductible than other personal policies.  If you live in an area where earthquakes happen often, having this insurance is critical to protecting your financial future.  But remember, earthquakes can happen almost everywhere and in areas with low risk, the cost of adding this coverage is often minimal.

Motorcycle Insurance

Riding a motorcycle, just like driving a car, carries certain risks and responsibilities and most states require drivers to carry a certain amount of insurance.  However, your motorcycle is not always automatically covered under your existing auto policy.   A motorcycle insurance policy protects you from property loss or damage if something happens to your bike and with liability coverage in the event you are responsible for causing damage to something or someone else.   In addition to this base coverage, you may also need to add coverage for accessories or specialized equipment.

Recreational Vehicle Insurance

Like other types of specialty coverage, recreational vehicle insurance provides additional protection from risks specific to your RV.   This type of insurance goes beyond what is covered by auto policies, property damage and liability coverage, and often offers additional protection from breakdowns and travel related risks.

If you are concerned that you have a specialty risk that may not be covered by your existing policies, talk to your insurance agent.  They can walk through the details of your policies and help you determine if you need additional coverage and which type you need.

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RV Insurance

Is your vacation insured properly? Read more to learn about RV Insurance (image via _escalade328s_ on Flickr)

The summer season is fast approaching and if you are planning to head out on the open road for a family RV adventure, make sure you take a couple minutes to ensure you have the insurance coverage you need before you leave.  Many people share the common misconception that adding their RV to their auto policy provides them with adequate protection during their trip.  While your auto policy may offer some of the coverage you need, it won’t protect you completely which is why it makes more sense to invest in an RV insurance policy.  Buying a separate policy ensures you have all the coverage you need to keep your trip on track and protect yourself while you are on the road.

What is the Difference between Auto Insurance and RV Insurance?

The primary differences between auto coverage and RV coverage result from the primary differences between your car and your RV.  An RV is more than just an RV; it is a house on wheels.  This means you need more coverage than you have on your car in order to cover potential losses that you are open to with an RV that you wouldn’t be with a car.

You keep significantly more property in your RV than you do in your car, some of which can be valuable like laptops, televisions, and other equipment.  When your house on wheels is parked at a campsite, the area around it can be considered your “yard” which makes you liable for things that happen there.  There isn’t really a situation where your car could be thought to have its own yard.  If your RV is damaged while you are on the road, you will need somewhere else to stay just like you would if your house was damaged.

If you are traveling with only your auto policy, the loss of your property, your liability for the campsite, and the expenses related to staying somewhere other than the RV won’t likely be covered which means you will be paying out of pocket.  That might break your vacation budget and force you to cut your trip short.

Common RV Coverage’s

There are several different types of RV coverage available from most insurers, although they may call the coverage by a different name.  Here are the most common coverage types:

  • Bodily Injury – Covers you if there is an accident where you are liable for someone else’s injuries including medical bills, lost wages, and other legal obligations relating to the injury.
  • Uninsured/Underinsured Motorist—Covers the cost of repairs when you are involved in an accident and the driver at fault doesn’t have insurance or doesn’t have enough insurance to cover your losses.
  • Property Damage— Covers the repair or replacement of damage done by you or your RV to other people’s property
  • Comprehensive – Covers damage or losses to your RV and/or personal property from all covered threats except collision.  This includes things like theft, vandalism, and weather.
  • Collision – Covers the cost of repair or replacement of the RV and all components if it is damaged in a collision.
  • Vacation Liability— Covers your liability for bodily injury and property damage while on a vacation site or camp site.
  • Towing & Labor—Covers the cost of towing by a tow truck capable of handling the RV.
  • Roadside Assistance—Covers the cost of roadside assistance when you break down or run out of gas.
  • Emergency Expense – Covers your costs to live outside the RV in the event it is damaged and needs to be repaired.  Generally includes lodging, meals, and travel.
  • Personal Effects Replacement Cost – Covers the expanded personal property you are likely to have in the RV against loss or damage.
  • Full Timer’s Package – Provides a package of coverage’s that usually includes liability, coverage specific to when the RV is parked and being used as a residence.

Purchasing RV insurance protects you no matter what comes your way and gives you the peace of mind to sit back, relax, and enjoy your vacation.

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