The Homeowners Insurance Liability Gap
Posted on Fri, Sep 18, 2009 @ 10:29 AM
It comes down to location, location, location...
The homeowners policy covers your primary home for liability, but not other locations you rent long-term or own, such as a vacation home or rental properties. Additional types of ownership, timeshares or fractional ownerships for example, also present a liability exposure. Personal liability coverage might not apply under your homeowners policy in the case of timeshares and fractional ownerships if your ownership is deeded.
Most people remember to insure their house, whether it's because they know how important this coverage can be or because their bank required proof of insurance. But sometimes rental apartments, secondary homes and condos don't have a mortgage and owners forget to insure these properties. Sometimes, they mistakenly believe coverage is provided in their homeowners policy... it's not!
There are simple ways to provide personal liability for these situations. The homeowners policy can be endorsed to extend personal liability in some of these situations, or it can be added directly to the policy covering that additional location if one is present. In the case of rental properties, it is necessary to secure liability for your exposure as a landlord.
Photo by dilipkumar
If you have questions or concerns about your personal liability protection, please call us. We're here to help!