Page 37 - Delaware Medical Journal - January/February 2020
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CASE REPORT MSDIS CORNER
isn’t any coverage provided for breakage included in an unendorsed homeowner’s items, such as statues, framed paintings, or pottery, you need to itemize them to have breakage coverage.
Premiums are based on the value of the item shown on the declarations page
of itemization. While your policy will possessions and your policy premium
is based on those itemizations, the insurer does have the right to provide you with settlement that is less than the value listed. This happens with jewelry claims when the insurer is able to obtain a replacement item of “like kind and quality” through a jeweler they deal with. Insurance companies do not always do this, but if you want to be sure you receive a settlement equal to the value shown on your policy, you need to make sure your policy has an Agreed Value/ Stated Value endorsement clause. The good news is, when you itemize your valuables, there typically is no deductible associated with this coverage.
VACATION CHALLENGES
If you plan on visiting the Delaware beaches this summer and renting a house, there are a few things you should consider with regard to your personal liability exposures. Personal liability coverage protects your assets by paying claims and damages in case you injure other people or their property. Assets may include homes, automobiles, and future earnings.
When renting a house, whether it’s through a rental agency or a private homeowner, should you be negligent and cause damage to the home, you will be responsible for repairing and/or replacing the damaged property. For example, I had a client years ago who had a condo at the beach that he rented to others. The renter used the washing machine and the hose
“PERSONAL LIABILITY CONTRACTS HAVE DIFFERENT COVERAGES AND EXCLUSIONS WITH REGARD TO TRAVEL DESTINATIONS.”
broke and left water running in the unit. The renter was found partially responsible since he left the washing machine running and unattended. Therefore, the renter had to submit a claim under personal liability on his own homeowners policy to have the damages he was liable for paid.
Personal liability contracts have different coverages and exclusions with regard to travel destinations. Insurance companies may add coverages and/or additional exclusions for non-domestic travel. It
is very important that you contact your
policy will provide coverage for you while in the United States and its territories or if it will provide worldwide coverage. If your policy doesn’t provide worldwide liability and you rent a hotel room, condo, house, Airbnb, etc. outside the United States
and its territories, your personal liability contract may not provide any coverage for any damage you caused, which could be catastrophic.
Other challenges when traveling include renting watercraft. It’s very important
that you check with your personal liability
you are renting will be covered in case
of an accident. This includes motorized water travel. Every personal liability contract is different when it comes to renting watercraft. Some carriers will provide coverage if the vessel is less than a certain horsepower and/or less than a certain length. For example, a boat rented that is less than 24 feet and less than
50 horsepower would be covered, but a boat that is 26 feet long and less than 50 horsepower may not be covered.
Best advice: take the time to contact your insurance carrier and ask these important questions. A few moments on the phone or spent in person could save you a lot of time and money if something goes wrong.
CONTRIBUTING AUTHOR
■ Kimberly A. Matthews, CIC, CISR is a Premier Senior Client Advisor with USI Insurance Services, LLC. For two years in a row, her clients have voted her onto Delaware Today’s list of top insurance agents in New Castle County.
Del Med J | January/February 2020 | Vol. 92 | No. 1
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