Date: July 11, 2005
For more information contact: Eileen Mallow, Assistant Deputy Commissioner, (608) 266-7843 or eileen.mallow@wisconsin.gov

Summer Insurance Needs

The Wisconsin Office of the Commissioner of Insurance offers tips
to keep in mind while enjoying summertime activities

Madison, WI--The weather is finally warm, the kids are out of school and summer in Wisconsin is in full swing. Whether your summer involves travel or simply enjoying the weather in your own backyard, the Office of the Commissioner of Insurance reminds consumers to make sure their insurance coverage meets the needs of their chosen pastime to avoid unnecessary stress and expenses.

"Planning ahead to make sure your travel plans, car rentals, boating equipment and other summertime leisure activities are properly insured can really save time, money and stress in the long run," Insurance Commissioner Jorge Gomez said.

Travel

Many health insurance plans require that you use plan providers and place limitations on health care coverage when the policyholder is traveling outside of the plan's geographic coverage area. Some health insurance plans will only cover care in emergency situations, while others will cover only a portion of the charges. Health care during travel outside of the United States is often not covered or it has strict limitations in place. The best thing for consumers to do is check on their health insurance policies prior to leaving on a vacation.

Travel websites often encourage consumers to purchase travel insurance to cover the risk of a trip being cancelled because of unexpected illness, injury or death of the traveler or a family member; inclement weather or natural disasters that shut down airports and other travel services; and other situations that could not have been predicted. Generally, health situations as a result of a pre-existing condition, pregnancy, participation in high-risk sports and other similar instances are not covered. The coverage is quite limited, so check the exclusions and limitations in the policy carefully before you decide to purchase the coverage.

Lost or damaged luggage may also be covered under the travel policy, with the exception of old luggage that has depreciated in value. Items contained in luggage such as cameras, money, medications and jewelry are not covered under travel insurance policies. Note that the homeowner's insurance policy typically covers personal property worldwide, within limitations listed in the policy.

Summer Recreation Vehicles

Living in a state with so many lakes and outdoor recreation areas provides many opportunities for fun on the water with vehicles such as boats or jet skis. In general, boats and damage they may cause can either be insured by homeowner's insurance policies or by a separate boat owner's policy. Boaters should talk to their insurance agent to determine the appropriate type and amount of coverage.

Those who decide to cover their boat under their homeowner's insurance policy should keep in mind that there are significant limitations. Many types of watercraft are excluded from coverage under homeowner's policies based on their size or their motor. Theft is not covered if the boat is away from the residence listed in the policy, and wind and hail damage is only covered if the boat was housed in a fully enclosed building or boathouse.

Boat owner's insurance policies also carry some limitations, but cover the boat itself and provide some liability coverage. Normal wear-and-tear, governmental fines and contractual liability assumed by the insured are not covered under boat owner's policies. Also, some insurers do not cover certain types of boats and other watercraft.

Backyard Hazards

Pools. Trampolines. Man's best friend. Planning ahead, avoiding dangerous situations and making sure you are properly insured can prevent summertime staples from becoming expensive liabilities. You will likely find that some insurers are unwilling to insure property that has certain types of risk, such as unfenced pools or trampolines.

Homeowners and renters with dogs should have liability insurance. Some insurance companies will not insure households with certain breeds of dogs or pets, including German shepherds, pit bulls and rottweilers. Additionally, insurance companies can cancel or refuse to renew a homeowner's or renter's policy after an attack or injury involving a pet.

The Take-Away

PLAN AHEAD! Consult with your insurance agent about your current insurance policies and your insurance needs and make sure your "fun-in-the-sun" isn't hindered by a loss that you intended to insure.

More information about homeowner's insurance is available from the Office of the Commissioner of Insurance. The OCI publications, "Consumer's Guide to Insurance," "Consumer's Guide to Homeowner's Insurance" and "Settling Property Insurance Claims," can be ordered free from the agency by writing to OCI Publications, P.O. Box 7873, Madison, WI 53707-7873, calling 800-236-8517 or visiting the OCI Web site at http://oci.wi.gov.

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.