SUMMER SAFETY AND COLLEGE STUDENTS COVERAGE

JUNE 2014 INDEX

SUMMER SAFETY AND COLLEGE STUDENTS COVERAGE

BY ALAN PLAFKER, President & CEO
MEMBER BROKERAGE SERVICE LLC
A MELROSE CREDIT UNION SERVICE ORGANIZATION

PUT SAFETY FIRST THIS SUMMER: GUIDELINES FOR BOATING AND WATER SAFETY

One of summer's greatest joys is heading to the beach or pool to enjoy the warm weather. Before you pack the swimming and boating gear consider this: most boating and swimming accidents occur because people don't stop to think about safety.

How can I prevent boating and swimming accidents?

The most tragic accident is the one that could have been prevented. By observing safety guidelines, you can reduce the incidence of boating and swimming accidents and keep your family safe.

Never swim alone.
Know your swimming ability limits, and those of your family, and stay well within them.
Learn the proper way to dive, and always check the water depth before diving.
Never chew gum or eat while swimming.
When boating, carry a first aid kit as well as prescription medicine and any other personal care items you may need.
Equip your boat with an AM radio in case of emergency.
Everyone on board should have a personal floatation device.
Leave the alcohol behind when swimming or boating. Of the nearly 700 boating fatalities in the nation each year, 21 percent are attributed to alcohol. Violators charged with Boating While Intoxicated face possible fines, jail and community service.

I own a boat. Is it covered under my homeowners insurance policy or do I need specialized coverage?

You probably need specialized coverage. A typical homeowners policy covers liability for damage to property and bodily injury to others when the watercraft is a sailboat under 26 feet, or when it is powered by an outboard motor of 25 horsepower or less. However, theft and sea perils, including sinking, stranding, running aground and collision, are not covered.

What should I look for in a policy?

Boat owners will be well served by a policy specifically designed to cover physical damage to boats, liability for damage and/or injury and protection and indemnity liability.

When selecting a policy or checking existing coverage, look for limits of navigation, where the boat can go and still be protected by the insurance policy. Insureds who violate these limits may not be covered if the vessel is damaged. Also important in a boat policy are adequate limits of liability insurance and provisions for insuring sails, spars and other property in the boat.

Can I be sued for an accident that occurs in or near my pool?

Yes. For this reason, you should check to make sure the limits of your homeowners policy are adequate. If you are involved in a lawsuit and the court awards a settlement higher than your limits you will be held responsible for the balance. To protect yourself you may want to consider increasing the limits of liability on your homeowners policy to protect yourself against a potentially devastating lawsuit. Your agency can help you obtain and secure adequate coverage.

GOING AWAY TO SCHOOL—AN INSURANCE PERSPECTIVE

Does our homeowners policy cover our son or daughter while away at college?

According to the ISO Homeowners Policy (special form), a student is considered an "insured," if:

under the age of 24, and
your relative, and
enrolled in school full time as defined by the school, and
who was a resident of your household before leaving to attend school.

An extension for older children pursuing a higher education can often be obtained from the insurance company upon request.

How will our student's belongings be covered?

Since children away at school are an "insured" on their parent's homeowners policy, they will be covered for property they bring to school subject to certain policy limitations.

What are the property coverage limitations?

The policy states the limit of liability for personal property usually located at an "insured's" residence, other than the "residence premises," is 10 percent of the limit of liability for Coverage C, or $1,000, whichever is greater.

The limit of liability for Coverage C is the limit you purchased for all of your personal property which is shown on your policy. If this limit is shown as $70,000, then the limit for your children's property at school would be $7,000.

Theft of property located at school is covered as long as your child has been there at any time during a specified number of days before the loss, typically, 60 or 90 days.

In addition, all of the normal personal property policy limitations would apply to the collegiate away at school. These limitations are called special limits of liability. They limit coverage to specified amounts for such property as money, jewelry and tickets, for example, airline tickets.

Some insurance companies have a special limit for computers. A limit also applies to the unauthorized use of credit cards and fund transfer cards.

What about liability coverage?

Children away at school are covered for bodily injury or property damage they cause to others when held legally liable for their actions. Included is the liability children have for a hazardous condition in the dorm room since this location is automatically covered as a premises not owned by an "insured;" and where an "insured" is temporarily residing. However, your children are not covered for liability they incur from unlawfully furnishing alcohol to others who become involved in an auto accident.

Is there any other coverage we should obtain?

Because of the special limitations and restrictions for certain kinds of property you may want to consider purchasing specific coverage for scheduled items. Besides establishing accurate values for these items and insuring their full value without limitation, this will broaden the events that are covered and eliminate deductibles.

Considering the widespread use of social media, your children should be covered for liability they incur due to oral or written material that libels someone or violates their right of privacy. This kind of liability is included in "personal injury" coverage, generally available as an endorsement to the homeowners policy.

Is there anything else we should do?

Have your collegiate(s) take a careful inventory of everything they are taking with them, including make, model and serial numbers, where applicable. It also would be a good idea to invest in locks where appropriate to further protect their belongings.

Don't forget to let the insurance company know if your child is away at school more than 100 miles from home without custody of an insured vehicle, because you may be eligible for an auto insurance discount.

Lastly, have them call home often.

Your Professional Insurance Agent …
We want you to know about the insurance you’re buying.

Alan Plafker

President of Member Brokerage Service LLC, A Melrose Credit Union Service Organization
Licensed Insurance Broker
President and Member of the Board of Directors, PIANY, Professional Insurance Agents Association of New York
Active Member of CIBGNY, Council of Insurance Brokers of Greater New York
Treasurer, New York Independent Livery Driver Benefit Fund Board of Directors

His agency insures thousands of policies for Taxi Limousine Commission insurance as well as many policies for all types of personal and commercial insurance. He can be reached in his Briarwood, Queens office at 718-523-1300 X1082, or www.MemberBrokerage.com.