Homeowners / Tenants

Boats and Yachts

Most homeowners policies provide limited coverage for watercraft: coverage for the boat itself, equipment, liability, and, in some cases, personal property. You may require a specific boat or yacht policy. Overall, boats are rated on valuations, usually based on marine surveys that identify conditions and potential problems, current replacement cost, and so forth.

Insurance policies for boats and yachts generally have restrictions: the vessel must be for pleasure and recreation use only (not business); navigational areas are defined; the lay-up warranty requires that the vessel not be used for a specified period of time during the year; and a seaworthiness warranty requires that the vessel be maintained as seaworthy and safe. In addition, there may be water-skiing exclusions or restrictions and limited coverage for personal watercraft or wave runners, hydrocycles, kit boats, and ski boats. Again, these are items to be discussed with your Aon Reed Stenhouse insurance professional.

Umbrella policies can usually be extended to cover watercraft.

  1. Boat Insurance
    • For the most part, boat insurance programs cover boats valued at $3,000 or more and which are between 16 feet and 25 feet 11 inches in length. Coverage is provided for the boat itself, equipment, personal property, and liability.
  1. Yacht Insurance
    • A vessel longer than 26 feet is considered a yacht. There are two major coverages in yacht insurance policies: hull coverage for property & protection and indemnity (P&I) for liability. Hull insurance is very broad with few exclusions. Yachts are usually insured on an agreed-value basis.
    • If you employ a captain or crew on your yacht, you must have the maritime form of workers’ compensation coverage.
    • Basic yacht coverage also includes boat coverage, medical payments, and commercial towing and assistance. There are optional coverages for hurricane protection and fishing equipment.

Overall, boats are rated on valuations, usually based on marine surveys that identify conditions and potential problems, current replacement cost, and so forth.

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Condominiums and Co-ops

Condominiums and co-ops require certain property coverage. Most association policies go only as far as primer coats on walls and ceilings, and bare wood floors. Your own coverage should extend beyond your personal belongings to include woodwork, kitchen cabinets, bathroom fixtures, and wall coverings, among other things. Check with your association to determine who is responsible for what.

Condominium owners need their own insurance above and beyond the condominium’s master policy, which insures only the actual building. In addition, condominium and co-op owners need loss-assessment coverage. This is protection if the association policy is inadequate, and the association must assess individual owners. Loss-assessment coverage applies to property and liability losses up to a stated amount, and must involve a peril insured in the unit owner’s policy.
The coverage under the corporation policy only covers a standard unit. If you have installed any upgrades, then you require coverage for betterments and improvements.

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Farmowners policy

A package policy designed for family-owned ranches and farms patterned after a homeowners policy. Coverages include farm dwellings and their contents, barns, stables and other farm structures.

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Home based office

Running a business from home usually requires computers, fax machines, printers, business furniture and inventory. Most standard homeowners and tenants policies provide coverage up to $2,000 for books, tools and instruments pertaining to a business, profession or occupation, but only while these items are on the premises.

Operating a business for financial gain also changes the way your policy responds to liability losses.

To be sure you have adequate coverage for your home office, talk to your broker and ask for an extension to your policy.

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Homeowners policy

A homeowners policy is a type of property insurance. Property coverage is available for homes, condominiums, seasonal dwellings and rented dwellings. Additional coverage is available for watercraft, valuable articles, umbrella liability, home based businesses, personal effects and more. Numerous versions of homeowners policies exist, but most insurers provide broad personal liability coverage for the owner or renter, including the spouse, children and relatives residing in the home.

Numerous endorsements can be added, such as a personal articles floater for highly valued jewelry or furs, and an inflation guard endorsement to maintain adequate levels of insurance. The various forms provide coverage at different levels for dwelling, other structures, personal property, loss of use, additional coverages, personal liability, medical payments to others. The various forms differ in regard to property coverage but provide similar liability coverage.

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Personal Umbrella

A form of umbrella liability insurance for individuals and their families. It provides coverage for (1) excess liability over underlying liability coverage (homeowners, auto) and (2) some of the liability exposures excluded by underlying policies.

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Tenants Package

A tenants package policy is designed for tenants of residential premises, such as houses or apartments, who do not own the building in which they reside. The package does not provide coverage for buildings, but coverage is afforded for personal belongings, living out expenses (additional living expenses if you must move out due to an insured peril) and personal liability.

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Insurance Sources

(General – Not necessarily accessible by TCIM)

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