With the weather changing in the Northeast, it is time to dust off the summer toys and start enjoying the great outdoors! Before you hit the trails with your All-Terrain Vehicle (ATV) or try out the new Wave Runner at the beach, you should be on the lookout for how to protect these possessions as well as the liability surrounding them.
First off, you should never assume the coverage on your homeowner’s policy is enough. Usually they only offer minimal coverage for theft or damage, without a waiver or endorsement, you could be under-insured.
Liability coverage under a homeowners policy covers ATVs, Wave Runners and motorized scooters provided they stay on your premises. If you actually want to use these vehicles out in the wilderness or on the waves, you need to get separate insurance policies for them. For instance, New York State requires liability insurance to operate any ATV outside of your own property. Minimum required coverage is $50,000/$100,000 for death, $25,000/$50,000 for injury, and $10,000 for property damage in any one accident. You must show proof upon the request of a judge, the police, or a person claiming to have suffered injury or property damage from your operation of the ATV.
Consider the catastrophic event of causing injury with your ATV or worse, someone is injured while using it. Damages can add up quickly if you are being sued for hospital bills and lost wages. In a liability lawsuit, plaintiffs could go after your income as it comes and even some types of retirement savings. Liability limits purchased may not be enough to protect you in case of a serious lawsuit. It is imperative to schedule all recreational vehicles under a Personal Umbrella Liability policy. Accidents happen! Anyone can be sued for accidental injury and legal awards can exceed your primary policy limit. It is important to have a higher level of protection above and beyond the basic coverage of your standard liability insurance.
Ultimately, you want to prevent a lawsuit from causing your financial ruin. In this litigious world with liability judgments ranging between $2M and $20M, it’s better to have the right coverage and not need it, than need it and not have it.
Have one of our independent professionals review your personal insurance policies to make sure you have sufficient coverage to protect your recreational possessions and the liability risks that surround them.
If you need help determining whether you have the right coverage or have any questions, please contact A;bert Sica at 732.395.4251 or [email protected].
