Gun ownership is a big responsibility and having the proper insurance coverage is an important element in meeting that responsibility.

Personal Property

For most standard homeowners policies, guns are considered personal property and are covered as such. However, they may be subject to sub-limits that are lower than the overall property limit, primarily due to the fact that they are small, usually valuable and easily transportable.

You should check with your insurance agent to determine the extent of your coverage. If you need additional coverage, you can obtain it through a rider if your current provider offers it. If such a rider is not offered, you may want to ask about a separate policy for your firearm.

Liability

The liability risk that gun owners face is a complicated issue since it turns on the circumstances of any injury and the prevailing state laws and court decisions. Having said that, you may want to consider higher levels of liability coverage to protect yourself from this unique risk.

Speak with your agent to discuss how to raise the personal liability protection on your policy, including asking him or her if an umbrella policy may be an appropriate solution.

One of the attractions of leasing a car is that it generally requires a much smaller upfront outlay of cash compared to what purchasing a car might require.

This preference to minimize an upfront cash payment may mean that some individuals may also roll other associated costs into the lease payment, including the capital-reduction amount (or down payment).

While the predictability of a known payment amount for a set period of time may be convenient, rolling up such costs into the lease payment may create a financial risk in the event that you experience a total loss from an accident or similar misfortune. In some cases, what you owe may exceed the value of the car and the amount of the reimbursement you receive.

You can protect yourself against this potential risk by buying gap insurance, which is designed to cover the difference between what conventional auto insurance covers and what you owe at the time of the loss.

Gap insurance may be added to your existing auto policy or purchased separately.

How Much Gap Insurance Do I Need?

The gap between the value of the car and what you may owe is predicated on a number of variables, such as the depreciation of the car, the number of payments made, and even the nature of the deal you negotiated. As you might have guessed, the relationship between these variables means that the amount of gap insurance you may need can vary over time.

To obtain adequate coverage, you should contact your insurance agent and work with him or her to determine the necessary coverage amount.

What’s Covered

A homeowners insurance policy is a package of coverages, including:

• Dwelling: Covers damages to your house and any attached structures, including fixtures such as plumbing, electrical and HVAC systems.
• Other Structures: Pays for damage to unattached structures, including a detached garage, tool shed, fence, etc.
• Personal Property: Covers personal possessions such as appliances, furniture, electronics, clothes, etc.
• Loss of Use: Reimburses for additional living expenses while you are unable to live in your home.
• Personal Liability: Pays claims if you are found liable for injuries or damages to another party.
• Medical Payments: Pays the medical bills incurred by people who are hurt on your property or by your pets.

Remember, these coverages pertain only to losses caused by a peril covered by your policy. For instance, if your policy doesn’t cover earthquake damage, then losses will not be reimbursed.

Types of Homeowners Policies

The types of covered perils will depend on the type of policy you buy.

The Special Form is the most popular policy since it insures against all perils, except those specifically named in the policy. Common exclusions include earthquake and floods. Typically, flood insurance is obtained through the National Flood Insurance Program, while earthquake coverage may be obtained through an endorsement or a separate policy.

Limits of Coverage

Your policy will impose limits on the amount of covered losses.

If you have a valuable art collection or jewelry, you may want to secure additional insurance on those items.

Be aware of whether your policy insures for replacement cost (pays the cost to rebuild your home or repair damages using materials of similar kind and quality) or actual cash value (home value based on age and wear and tear), which may not cover all your losses.

Coordinating Umbrella Liability Coverage

Individuals with significant assets may want to consider attaching an umbrella policy to their homeowners policy, which provides liability coverage in excess of the liability limits of your current policy.

What’s Covered

A homeowners insurance policy is a package of coverages, including:

• Dwelling: Covers damages to your house and any attached structures, including fixtures such as plumbing, electrical and HVAC systems.
• Other Structures: Pays for damage to unattached structures, including a detached garage, tool shed, fence, etc.
• Personal Property: Covers personal possessions such as appliances, furniture, electronics, clothes, etc.
• Loss of Use: Reimburses for additional living expenses while you are unable to live in your home.
• Personal Liability: Pays claims if you are found liable for injuries or damages to another party.
• Medical Payments: Pays the medical bills incurred by people who are hurt on your property or by your pets.

Remember, these coverages pertain only to losses caused by a peril covered by your policy. For instance, if your policy doesn’t cover earthquake damage, then losses will not be reimbursed.

Types of Homeowners Policies

The types of covered perils will depend on the type of policy you buy.

The Special Form is the most popular policy since it insures against all perils, except those specifically named in the policy. Common exclusions include earthquake and floods. Typically, flood insurance is obtained through the National Flood Insurance Program, while earthquake coverage may be obtained through an endorsement or a separate policy.

Limits of Coverage

Your policy will impose limits on the amount of covered losses.

If you have a valuable art collection or jewelry, you may want to secure additional insurance on those items.

Be aware of whether your policy insures for replacement cost (pays the cost to rebuild your home or repair damages using materials of similar kind and quality) or actual cash value (home value based on age and wear and tear), which may not cover all your losses.

Coordinating Umbrella Liability Coverage

Individuals with significant assets may want to consider attaching an umbrella policy to their homeowners policy, which provides liability coverage in excess of the liability limits of your current policy.

The premium on my personal umbrella increased in the middle of the policy term. My insurance agent says it’s because we added a teen driver. This doesn’t seem fair since our child is a good student and is covered by our auto policy.

Umbrella coverage works hand in hand with your home and auto insurance. For example, if you are in a car wreck and seriously injure or kill another person, you can easily exhaust the bodily injury limits of your auto policy. When that happens, your umbrella policy steps in and pays the additional amount you owe, up to the umbrella limit (often $1 million).

As a group, teenagers have the highest accident rate of any drivers, and car accidents are the number one cause of teen deaths. There are many reasons for these grim statistics: teens are more inexperienced drivers, engage in riskier behaviors and are easily distracted by electronic devices. There is much you can do to keep your child safe behind the wheel. If your state doesn’t restrict cell phone use and texting while driving or impose curfews and passenger limits for young drivers, you can set limits on those activities yourself.

With time and a good driving record, your child's auto and umbrella insurance premiums will decrease. In the meantime, you can get a lower overall rate for your family’s insurance by purchasing your home, auto, and umbrella coverage from a single insurance agent.  Also, ask about good student and other applicable discounts. Increasing your home and/or auto deductibles is another way to make insurance more affordable.

Give us a call and we can assist you in reviewing your policies to make sure you are receiving all of the discounts for which you - and your teen - are eligible.