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Insurance - Managing Those Other Risks

Most of us carry insurance for risks associated with our homes and cars and health and even our lives. But what about other things that are important to us and might, just might, cause us problems if the risks manifest?

One example to illustrate some of the things you might want to think about is the not uncommon second or vacation home that you use part of the year and rent out in season. Your homeowner’s policy might work fine if it was just you using the property, but when it is rented, the insurance company will want to know and will require a different kind of coverage.

What could go wrong? Plenty:
·         Damage or destruction of the structure(s) by the renters or their guests as well as strangers
·         Damage or destruction by fire, wind, flood, earthquake, what have you
·         Liability claims for injury to renters or visitors to the property (think of the collapsing balcony or defective appliance)
·         Fines or litigation arising out of the use of the property by renters or visitors (what about parties getting out of hand, drug sales, underage drinking). Sometimes it doesn’t matter if you are not there, the issue is related to the property.
·         If there is a claim arising out of events on the property, how might that affect your other assets if the liability exceeded the value of the property?

So whether it is your antique stamp collection, pontoon boat, or simply your ability to do your job, considering insurance for the what ifs may be worthwhile. Look at what you might lose – the use and enjoyment of objects, abilities, time and more – and factor in the likelihood of a loss happening and the cost of making things OK, and decide which risks are right to take without getting insurance and which really should have at least some coverage in place.  

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