There’s nothing better than spending a beautiful day outside by the water. Owning a waterfront home allows you to enjoy swimming, boating, fishing, and more, but it also exposes you to additional risk. To fully enjoy your property, it’s important to invest in umbrella insurance to protect your assets. To help, Muller Insurance explains everything you need to know about safeguarding your success with an umbrella insurance policy.
Know the Risks
There’s no doubt you’re familiar with the risks associated with homeownership. Those same risks apply when you live by the water, whether you’re enjoying a vacation home or your primary property. Unfortunately, your risk increases every time you invite someone to share in the fun – and sometimes when you don’t.
When guests join you for a relaxing day on the water, you take on responsibility for their safety. Whether they swim, cruise on your boat, or convince your teenager to take out a jet ski, these activities add liability to your existing load. Worst of all, because waterfront property is a sign of wealth, guests may assume you have an unlimited capacity to pay if they are injured.
Yet even the wealthiest people often have limited liability coverage through their homeowner’s insurance. If you’re sued by a guest or even a trespasser, the suit may far exceed the limits of your liability coverage. When you have $500,000 of liability coverage, for example, your policy will pay only that much on a million-dollar judgment. That means you’ll have to empty savings accounts, liquidate assets, or face garnished wages to cover the rest.
How Can Umbrella Insurance Help Me?
An umbrella insurance policy pays out any required funds that exceed your liability coverage, ensuring that you won’t have to change your long-term goals, stop saving money, or even sell your beloved waterfront property. These policies address many liability risks, including injuries and property damage, and can even extend to cover your spouse, children, and other household members.
However, it’s important to understand how much coverage you need and what type of coverage is included. For waterfront property owners, coverage for watercraft operation is a must. In most cases, at least $1 million of coverage is recommended, but the amount needed depends on several factors that elevate your risk of being sued. These can include:
- Above-average wealth, or simply the appearance of wealth
- You own a boat, jet skis, or any other watercraft operated by you and/or your family and guests
- You entertain frequently
- You offer guests alcohol on your property
- You employ uninsured workers to maintain your property
- Intruders can access waterfront, pools, or other attractive nuisances – even if you’ve taken precautions to keep them out
No one imagines they will be sued, especially by family and close friends. However, when injuries or damage to a guest’s property occur, there is a very good chance they will hold you liable and seek compensation. If they do, umbrella insurance protects both parties without undue hardship.
Protect Your Assets
With the right insurance coverage, you can avoid the loss of financial security and focus on enjoying your waterfront property for years to come. Contact Muller Insurance today to request a free quote and learn more about how umbrella insurance can safeguard your assets as a waterfront property owner. With more than 100 years of experience and relationships with numerous insurance companies, we’re prepared to provide the coverage you need at the right price for your budget.