Summer is just around the corner, which means partaking in some fun outdoor activities! Whether that means riding an ATV, boating on the lake, swimming in a pool or having backyard fun on a trampoline.
All of these recreational activities are fun with family and friends but it’s important to remember about insurance and the safety aspect of certain activities. You may need to inquire about additional insurance coverage if your regular policy does not include coverage for these specific items.
ATV Insurance
An all-terrain vehicle, ATV, also known as a four-wheeler or quad bike, is meant for off-road riding, and is designed to handle a wider variety of terrain than most other vehicles.
If you own an ATV, you will need insurance for it. It is street legal in some countries, but not in Canada or the U.S. If you are not riding it on your own private property, then you will require insurance.
ATV insurance is a specialty insurance product that not all insurance companies offer.
This coverage protects your finances in the event of loss, damages, an accident, injury, or theft of your vehicle. You will need to get coverage for third-party liability and accident benefits, both of which are mandatory for people riding an ATV on public roads, land, or highways.
If it is not licensed for the road, or they can’t get their own auto policy, the only option is via a home insurance policy. But, this is not recommended because there is no allotment for injury insurance if someone were to be hurt while driving it. It can be added via a floater / scheduled as an endorsement on the policy.
You should never rely on coverage from your home or auto insurance. Consider bundling this with your home and auto insurance policies for possible discounted rates.
Boat Insurance
If you own a boat, it is important to have boat insurance as it covers you in the event of a loss or damage to your watercraft. While boat insurance is not mandatory across Canada, it’s important to protect your investment.
It will provide coverage for your boat if it is stolen, in an accident, or damaged by a covered peril (fire or lightning) and will help protect you if you accidentally injure someone or damage their property with your boat.
For smaller boats, you may find some limited coverage under your homeowner’s policy. Depending on the type of boat you own, there are many optional additional coverages you can get to ensure the best protection for your watercraft.
The biggest claim category for boats is environmental contamination lawsuits coming from leaking boats and contaminating water systems. If a boat is insured on a home policy – most policies will not cover environmental contamination losses.
It is important that boat owners get a separate boat policy to cover their liability in the event of a gas/oil spill. Also, if injuries are incurred in a boating accident, the home policy offers no accident benefit coverage for this either.
Backyard Fun
Pools, hot tubs, and trampolines are great backyard additions and can be hours of fun on a warm sunny day! But, how do these things affect your insurance?
If you’re planning to build a pool, install a hot tub, or buy a home with these already in place, you’ll need to let your insurance advisor know. Both pools and hot tubs pose a high risk that insurance companies need to know about to adjust your home insurance policy accordingly.
Pools and hot tubs are an added liability risk and disclosure of them is required. An increase of the liability limit is recommended to protect yourself from paying legal and medical fees if someone were to fall and injure themselves while using your pool or hot tub.
While your home insurance would usually cover slips and falls, you should consider increasing your third-party liability coverage to avoid paying out of pocket for accidents around your pool. If you have a standard home insurance policy, chances are that won’t be enough.
Having a pool will also increase your property value and the replacement cost value if you need to rebuild your home. Both of these additions will impact your insurance causing an increase in rates.
A leak or structural malfunction can cause damage to your property and/or your neighbour’s property, resulting in costly water damage that you would be responsible for. Being transparent with your insurance advisor about your home and pool will ensure you are adequately covered for any event.
Trampolines are similar to having a backyard pool – they can be dangerous and therefore pose a higher risk of injury. Most insurance companies require that the trampoline have a net and locking zipper and/or fenced yard. Having additional liability coverage would be ideal if you are held legally responsible for any injuries.
Summer Days
There are many ways to spend your summer days but understanding your insurance coverage is key to ensure everyone’s safety. Talk to your advisor to review your home insurance policy and inquire about getting additional coverage to make sure you and your family are properly protected. Have peace of mind this summer!
