Home Owner Insurance

[p_pan]

Hi there,
We had rebar done today. We are very excited.

I need some help/insight on HOI for our pool. I called the agent today and they said that the pool is covered from a perspective of having something like a tornado ripping it off or the house falling on the pool and damaging it, but no coverage exists if the pool cracks, leaks, etc. Is this correct? Also, my "other structures" coverage is now $47k and I'd have to increase it to cover the pool and new fence. Is this correct as well?

Finally, I asked about liability and they said I already carry $500k on that but that it would be adviseable to buy an umbrella insurance that would cover for another $500k. The problem is that the umbrella coverage costs between $350 and $400 per year.

What should I do? What is the norm?

Thanks for any feedback.

 

[uwimage]

We carry a $1 million umbrella because of the pool, we're married, no kids, we like to have lots of parties...I'd rather be safe than sorry if something bad happened.

I'm not sure about the other questions...my wife handles that stuff, I do the day to day bills.

 

[SeanB]

We carry a $1 million umbrella because of the pool, we're married, no kids, we like to have lots of parties...I'd rather be safe than sorry if something bad happened.

I'm not sure about the other questions...my wife handles that stuff, I do the day to day bills.

We did the same, but we also have lots of kids around. It's probably over-kill, but I'd rather have too much than not enough.

 

[uwimage]

We carry a $1 million umbrella because of the pool, we're married, no kids, we like to have lots of parties...I'd rather be safe than sorry if something bad happened.

I'm not sure about the other questions...my wife handles that stuff, I do the day to day bills.

We did the same, but we also have lots of kids around. It's probably over-kill, but I'd rather have too much than not enough.

Kids....drunks...they trip about the same

 

[Hotrod30]

We carry a $1 million umbrella because of the pool, we're married, no kids, we like to have lots of parties...I'd rather be safe than sorry if something bad happened.

My wife and I also carry $1 million dollar umbrella policy. Our kids are grown and our grand kids swim in the pool now. I pay $378. a year to Allstate. The umbrella policy covers more than just the pool. Someone trips coming to your house; added car insurance; your dog bites a kid; etc.... It's added liability insurance. You just never know.

>>Also, my "other structures" coverage is now $47k and I'd have to increase it to cover the pool and new fence. Is this correct as well?

Yes. You are increasing the items covered. Also, just check with your insurance agent and see if you have "full value (replacement) coverage" or "prorated coverage" on your house insurance. Ask him to explain both and give an example.

>>something like a tornado ripping it off or the house falling on the pool and damaging it, but no coverage exists if the pool cracks, leaks, etc. Is this correct?

I don't believe any normal insurance company would insure for that.

 

[p_pan]

Thanks!

Thanks to all who contributed on this topic. I am getting a new quote from my insurance agent and will include an umbrella coverage as well. Also, will check on the total replacement issue.

Thanks again!!!

 

[Guest]

WOW, i think im gunna lower my umbrella coverage for the pool. i have it set at 3 mil, because that was reccommended by the realestage agent. but wow, yall are gettign 1mil.

i guess i will lower it down to 1 mil for the pool then. that should be some nice relief on the price then.

or i can raise the house , cars, boat insurance and still break even.

thanks guys.

 

[SeanB]

WOW, i think im gunna lower my umbrella coverage for the pool. i have it set at 3 mil, because that was reccommended by the realestage agent. but wow, yall are gettign 1mil.

i guess i will lower it down to 1 mil for the pool then. that should be some nice relief on the price then.

or i can raise the house , cars, boat insurance and still break even.

thanks guys.

I would check with your insurance agent, instead of the real estate agent.

Based on some of the things you have reported you and your sons doing in your pool, you may want to keep the higher limits. :lol:

 

[Guest]

WOW, i think im gunna lower my umbrella coverage for the pool. i have it set at 3 mil, because that was reccommended by the realestage agent. but wow, yall are gettign 1mil.

i guess i will lower it down to 1 mil for the pool then. that should be some nice relief on the price then.

or i can raise the house , cars, boat insurance and still break even.

thanks guys.

I would check with your insurance agent, instead of the real estate agent.

Based on some of the things you have reported you and your sons doing in your pool, you may want to keep the higher limits. :lol:

i guess so. if i ever blew up the house from within the pool. that would be kinda nice to build a 3 million dollar mansion. :lol: :lol:

 

[kirbinster]

I've got a 2 million dollar umbrella. You have to remember the umbrella covers much more stuff. For instance with my insurance company when I have the umbrella I can lower the liability limits on all my cars to their minimum level and let the umbrella pick up any risk - saves a lot on the car insurance.

 

[lulupalooza]

I was wondering if this also applies to AGP's as far as special insurance? right now we are still under a "investment" property type insurance. (formal rental prop, loan in my moms name, but deeded to me 2 yrs ago)

Since we are up for renewal and I want a HO policy I think I better get a ball on.

 

[JasonLion]

I have been told by a couple of people that umbrella insurance should be higher than your net worth but not less than a million.

 

[p_pan]

I have been told by a couple of people that umbrella insurance should be higher than your net worth but not less than a million.

I was told part of that by my insurance agent yesterday. She said it should cover my net worth because if for instance, if I have a liability coverage of $500k and another $300 in assets (i.e. cash, rental property, boat, car, etc), the person suing you can go after the assets if the cost of the damage is beyond $500k. If you have a $1M umbrella, it would help reducing the risk, although she did not say what was the cap but offered me the $1M as if this is the norm.

 

[kirbinster]

That is total nonsense about covering your net worth. People can sue for any amount they want, and if a jury awards it you are SOL! In fact, some experts suggest not to have too much insurance because when a plaintiff's lawyer learns of it they are more likely to take the case as you have created a deep pocket. So, just do what makes you comfortable.

 

[pooladdict]

I am in Canada, I was told to get 2 Million Public Liability Insurance on my house, I believe it cost me 200 bucks on top of my regular insurance.

You guys think its to much?

 

[txborn]

I am in Canada, I was told to get 2 Million Public Liability Insurance on my house, I believe it cost me 200 bucks on top of my regular insurance.

You guys think its to much?

In Cadanian dollars that sounds very reasonable. It costs us a little over $320 for 1M and about $45 more USD for an additional 1M of insurance.

 

[TresW]

We also went with a 1 mil umbrella policy. We had actually been looking at it before we got the pool, but the pool definitely tipped the scales.

 

[cobra46]

My agent also recommended a 1M policy. I can't remember how he quotes but I do recall thinking it was quite reasonable. He also said that we could reduce our other coverage if we wanted since the unbrella will pick up where our other insurance can't cover.

 

[Lershac]

He also said that we could reduce our other coverage if we wanted since the unbrella will pick up where our other insurance can't cover.

Hmm Thats odd, one of the requirements prior to getting our umbrella was that we max out our coverage in the other major areas such as car and homeowners ins.

All in all though, the whole affair is really cheap for the amount of protection it provides.

 

[Rhys]

Homeowners Policies generally provide broad property coverage to swimming pools and their covers. If you do a word search in the typical Homeowners H0-3 form, you'll only find a few references to swimming pools. One clause excludes collapse of the pool itself, but retains coverage if the house itself collapses and the pool is somehow damaged. Another exclusion has to do with water damage seeping from the pool to the house; the third one excludes pool damage due to freezing, thawing, pressure or weight of water or ice. The deductible applies, usually $500 or $1,000 these days.

If a tree falls and destroys a $2,000 safety cover, it should be covered on a replacement cost basis less the deductible. If it's a neighbor's tree and you can claim negligent maintenance on the neighbor's part, you might even recover in full, should you elect to blame the neighbor.

Coverage should be on a Replacement Cost basis; if it is not, get that changed. Coverage should be on a Special Form (formerly called all-risk) basis.

Coverage on the pool itself is under Other Structures, commonly written at 10% of the dwelling limit. If your home is insured for $300,000, you automatically have another $30,000 for outbuildings, detached garages, and pools. That can be raised if needed. The cover would typically be covered under Personal Property.

The Personal Liability has to be a certain limit to qualify for an Umbrella with all carriers. Umbrellas are a good idea for pool owners due to the increased exposure associated with drowning or other accidents. $1,000,000 is the starting point, with up to $5,000,000 available from most carriers for additional premium.

Carriers will inspect properties without notice and expect to find the pool fence gates locked at all times, year round. No-diving signs should be posted when appropriate.

If you are yet to build or have major renovations, be sure to review the insurance requirements section of the contract, and get a valid Certificate of Insurance from the builder and subcontractors confirming compliance with insurance section of the contract. If you don't understand it, ask your agent for some help. A lawyer might charge you to do that but an agent should review it as courtesy, from strictly a non-legal perspective.

Rhys