Date: June 11, 2009
For more information contact: Jim Guidry, (608) 264-6239 or jim.guidry@wisconsin.gov

Summer prompts special insurance considerations

Madison, WI—Memorial Day weekend is past and the kids are out of school. The buzz of lawnmowers and weed whackers surrounds the neighborhood, and the smell of brats and charcoal waft through the air. It's summer and the Office of the Commissioner of Insurance (OCI) reminds consumers to be aware of special insurance needs they may have for the summer season.

"Summer brings its very own set of insurance considerations," said Sean Dilweg, Commissioner of Insurance. "Making sure you are covered can save you a lot of time and money in the long run."

Consumers need to be aware of what their insurance covers when it comes to backyard hazards - such as pools and pets, recreational vehicles - boats especially, and rental vehicles.

Backyard Hazards

Summertime amenities such as pools, trampolines and hot tubs can all be expensive liabilities if you are not properly insured. Some insurance companies will not cover risks such as unfenced pools and trampolines. Plan ahead and check your local safety standards and building codes before purchasing one of these backyard items.

"It's a good idea to contact your insurance agent about purchasing more liability insurance," said Dilweg. "Many people forget that their new toy will also be their new liability risk."

Homeowners and renters with dogs must also be sure to have liability insurance. Many insurers charge more for breeds such as pit bulls and Rottweilers, while some will not insure households with certain breeds of dogs at all. Also, if your dog causes property damage or bodily injury, your insurer may cancel or non-renew your policy. The bottom line is if you're going to let your dog out in the yard this summer, take steps to socialize your dog to behave well and insure yourself against dog bite liabilities.

Additionally, consumers should use caution when using grills in the summer months. Insurers do not usually have set rules for where a grill can or cannot be, but local ordinances and some landlords may have their own restrictions. It is always wise to use common sense when firing up for a summer barbeque. Keep the grill far enough away from your house to avoid damaging the siding and eaves or setting the house on fire. Also be careful of low branches on trees and other wooden structures. Furthermore, if you rent, make sure to follow your landlord's guidelines for outdoor grills. It is better to be cautious than to risk damaging your property or the property of others.

Boater's Insurance

Because boating is such a popular summertime activity in Wisconsin, consumers should be aware that boats can either be insured by homeowner's insurance policies or by a separate boat-owner's policy.

"Consumers should be careful when purchasing boater's insurance since it contains many limitations and exclusions," said Dilweg. If your boat is insured under your homeowner's policy, coverage for the boat - including all its furnishings, equipment and engines or motors - may be limited to a certain dollar amount. Theft may not be covered if the boat is away from the residence listed on the policy and wind and hail damage may only be covered if the boat is housed in a fully enclosed building or boathouse. The liability coverages for many types of watercraft are also excluded from homeowner's policies based on the size of the motor.

Separate boat-owner's policies or endorsements added to your homeowner's policy can provide more comprehensive coverage for the boat and its furnishings, equipment, and engines or motors, and would provide liability coverages not otherwise provided by the basic homeowner's policy. However, boat-owner's policies or homeowner's endorsements also contain limitations and exclusions that should be reviewed.

Rental Vehicles

Another important consideration for consumers who are traveling during the summer months is whether or not their rental car is covered under their auto insurance policy. It is important to check with your auto insurance company before leaving to verify whether or not your rental car will be covered.

If your regular auto insurance does not include rental vehicles in its policy, rental car companies often sell collision damage waiver coverage (CDW). CDW shifts any liability for collision damage from the person renting the vehicle to the car rental company. Purchasing a CDW is probably worthwhile if you will be renting a vehicle outside of the United States and Canada.

Plan Ahead

The most important tip for consumers to remember during the summer months is to plan ahead. Consult with your insurance agent about your current insurance policies and any summertime liabilities you may still need to insure.

Publications such as Consumer's Guide to Insurance, Consumer's Guide to Homeowner's Insurance, and Settling Property Insurance Claims can be viewed on the OCI Web site at oci.wi.gov, or ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, or by calling 800-236-8517.

Created by the Legislature in 1871, Wisconsin's Office of the Commissioner of Insurance (OCI) was vested with broad powers to ensure that the insurance industry responsibly and adequately met the insurance needs of Wisconsin citizens. Today, OCI's mission is to lead the way in informing and protecting the public and responding to its insurance needs.