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Should I insure my Recreational Vehicles on their own policy or on my Homeowners ?

Some carriers will allow you to insure your Snowmobiles, ATV’s, Boats, Golf Carts, Etc. on your homeowners policy, as an endorsement. This can be very economical as your homeowners policy would provide the liability coverage at a much deeper discount. But be careful, cheaper is not always better. When insuring these types of vehicles, you must read the full policy to understand what exactly is being covered and where coverage is provided.

Endorsements on homeowners policies are often confusing. You must read the entire contract to determine what may or may not be covered, often flipping back and forth between sections. The biggest gaps in coverage are generally centered around where coverage is provided, i.e. only on the insured premises, and what type of coverages are provided., i.e. Liability, Medical Payments, Physical Damage, etc.

Often the homeowners policy will only provide liability and guest medical coverage while on your property, meaning there is no coverage when you take it off your property. This can be troublesome if you take a 4 Wheeler on vacation to enjoy some dunes or trail riding. Additionally, there is no liability or medical coverage for the residents of the household. To provide this, you would need Uninsured Motorist (Boater) coverage or Medical Benefits coverages, which are options on a stand alone policy. With boats, you need to be aware of Fuel Spill or Pollution coverage, which typically has a much lower cap, if any coverage at all on a homeowners policy.

Additionally, the standalone policies typically provide specialized endorsements to meet the specific needs of owners of the specific type of Recreational vehicle. For boats, it might be fishing equipment or the expensive electronics that are installed after market, like depth finders and GPS. For an ATV, it might be optional equipment like a Wench.

Lastly, you have to keep in mind, if you insure all these things on your Homeowners Policy, any claims will affect the entire policy and all items on it. By insuring the items separately, you minimize the impact of filing a claim, and reduce the likelihood of having a dilemma when considering a smaller claim. I realize, no one really likes paying for insurance, but more often than not claims issues arise because the insured became more price focused in there hunt for a better insurance plan.

Michael Vereecke, CLCS
Michael Vereecke, CLCS

President of Customer First Insurance Group,
Commercial Lines Coverage Specialist (CLCS) Designated, and Property and Casualty Licensed since 2009

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