Warmer weather leads to a summer full of outdoor adventures and activities. That means outdoor toys, like golf carts, boats, or electric bikes, will likely be put to use in the next few months.
Have you considered how your insurance might cover you in an accident? Just because you own it, don't assume your current property and casualty insurance will cover you or someone else if something unexpected happens.
Boat, jet ski, and Wave Runner owners typically know they need additional insurance coverage, but they should also understand the terms of their policy. For example, what if someone else hits your boat and they don't have insurance? Uninsured watercraft coverage will help cover expenses in an event like that. Do you plan on letting others drive your boat? What about people who don't live with you? The type of coverage you purchase will determine what drivers are covered in the event of an accident.
When talking with your insurance agent, you should also share your plan for storing your boat or watercraft boat during the colder months.
If it's stored on your property, there will be some coverage on your homeowner's policy, but there is likely a cap on the coverage amount. If the boat is stolen, you might be on the hook for some of the cost to replace it.
And remember trailers, accessories, and towing coverage. Those should be covered as well.
Who doesn't love taking the golf cart out to get dinner or visit the neighbors? Did you know your golf cart may not be insured once you leave your property? It's true. Most policies require additional coverage if you plan to use your golf cart on public roads or outside of your primary residence. Golf cart accidents can result in property damage and bodily injury.
There have even been incidents where a golf cart rolled into a lake and needed to be retrieved. Insurance would help with that. Some insurance companies will allow you to add an endorsement to your homeowner's policy for recreational vehicles, while others may require you to purchase a separate policy. Coverage requirements vary by state, so make sure you have the appropriate policy.
Standard bicycles are commonly defined as sporting goods equipment and typically have fairly low coverage limits on a homeowners policy. This is only sometimes the case with e-bikes. Many insurance companies consider e-bikes motor vehicles. If you use your bike frequently or own an e-bike, you should talk to your insurance agent about expanding coverage. When it comes to e-bikes, insurance companies have specific plans depending on the type of e-bike you have (pedal-assist v throttle).
Accidents on standard bicycles alone can be significant but increase the speed to 28 mph, and the possibility of serious injury escalates tremendously. In fact, the CDC reports that the cost of bicycle injuries and deaths exceeds $23 billion annually.
Similar but different, electric scooters also have the potential for severe injuries. If you have an accident, your health insurance will cover your personal injuries, but it won't cover injury to others. Most rental agencies have insurance, but that coverage is usually there to protect the company, not those involved in an accident.
Homeowners insurance won't help you here either. Electric scooters can be fun, but if you plan to be a frequent user, do your homework and find a policy that will provide coverage. As this is a fairly new space, not all insurance companies have coverage available.
Beyond the specific policies or endorsements, you should also have an umbrella liability policy. Umbrella policies provide additional coverage in the event your liability limits are exceeded. For example, you may have $500,000 in liability coverage for your boat and a 1 million dollar umbrella policy. If an accident results in $650,000 in medical expenses, the umbrella policy will pay the additional $150,000.
Even if you don't have outdoor vehicles, an umbrella policy is always worth discussing with your insurance agent.
Summertime is always a welcome season. Having the appropriate insurance in place will allow you to rest easier, knowing you've done your part to reduce your risk while enjoying outdoor activities.
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The material has been gathered from sources believed to be reliable, however Bedel Financial Consulting, Inc. cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through Bedel Financial Consulting, Inc. Advisory services are only offered where Bedel Financial Consulting, Inc. and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place.
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