Tackleshep... I read on another forum where a guy said his ski was stolen by someone unhooking the trailer w/ski from his car while he was in a store or something and towing it away. He stated that his insurance wouldn't cover the theft because of how it was stolen.
he said his agent told him that they wouldn't cover it because it wasn't stolen from his garage where he told them he would be storing it.
Is this how it works?
Sorry for the hijacking I just wanted to ask the insurance guy
Well that is pretty interesting. Naturally (standard disclaimer) things are not the same State to State but for what I know at the very least this we explained to him very poorly.
For the sake of being absolutely clear you need to understand the difference between liability and physical damage coverage. This actually applies to cars, mowers, 4-wheelers, jet skis and boats and is crucial to knowing what your going to get.
Simply explained insurance for all this stuff is broken down into two basic coverage parts. Liability and Physical Damage. Phys Dam is also referred to as two other coverages called Comprehensive and Collision. (something you'll recognize from your car coverage.)
ALWAYS REMEMBER - Liability coverage will NEVER pay you a single dime. Liability coverage is ONLY there to protect you from a lawsuit or demand for payment from somebody you caused property or personal injury to. No matter what happens if you have liability coverage that will NEVER pay you for damage to your property.
Physical Damage coverage or comp and collision is there to pay for damage. Collision pays when you collide with something and comp pays for when damage occurs to your vehicle that is not collision. (Hail, hit and run, vandalism, theft, and actually deer or animal claims as well - don't ask me why)
It is IMPERITIVE that you know what the hell you have. At the very least ask your agent via email and give him examples. When he answers its his problem, save the email its as good as the policy. Always remember that your insurance policy is a legal contract and your agent has a responsibility to you. Make him do his job and the trust but verify. All agents have their own insurance to cover their errors. But read the policy and look for that physical damage coverage if thats what you want.
Now specifically to your guy. There are two common ways to insure you jet ski.
1. Some home policies allow watercraft to be added to the policy. Then some companies (like the one I have) only allows this endorsement to apply to liability. If you want physical damage protection you must buy a seperate policy.
2. The second (and widely most popular) option is to purchase a specific policy for your watercraft. This policy will consist of basic liability provisions as well as physical damage IF YOU WANT IT.
(Quick note: NEVER and I mean NEVER buy a policy with less than $100,000 in liability. If you can afford these damn jet propelled maintenance machines you can afford the extra $25 for good liability. Personally I insure mine at $300,000 and the put it into a $1,000,000 umbrella policy with everything else I own.) The average ski, wake, runabout now costs over $50,000 new. Cruisers god help us all. If you OR SOMEBODY RIDING YOUR SKI would happen to hit the wrong button and put your ski through a boat and you don't have enough coverage to cover not only the damage to their boat but the injuries welcome to losing everything you own. Guys we have all seen it on the lake, with these skis its just a flinch of the trigger finger by you or anybody riding and you can kill somebody or sink a boat.....be very careful.
My gut tells me in this case that the individual had not taken out a specific physical damage policy on his skis. He had his agent endorse him homeowners policy for the watercraft liability and since they are not vehicles the agent was trying to find coverage under his personal property in the homeowners policy which would make sense. Now whether or not he asked for Phy Dam or thought he had it is between him and the agent. Thats why I'm always perfectly fine when somebody asks for an opinion on or change in coverage I ask for it in email. That way you write what you want and I write back telling you that it's there. Then if it's not it's my ass and my clients can all feel safe at night.
