5 Summertime Situations That Can Test Your Insurance Coverage

Summer presents opportunities for fun, adventure, and togetherness. Unfortunately, this season can also raise your risks for various kinds of financial liability in the event of a costly catastrophe.

Before you and your loved ones start planning your summertime agenda, you'll want to think about whether your current insurance policies provide adequate coverage against certain kinds of mishaps. Check out five common summertime scenarios that might prompt you to re-evaluate your coverage.

1. Summer Road Trips

Many car owners and their families head off for summertime destinations without stopping to wonder whether their current auto insurance meets their needs. If your road trip will take you out of the U.S., for example, you may need to purchase more or different insurance than you currently have, according to Insurance Neighbor.

Your auto insurance policy will most likely cover any trips across the Canadian border. However, if you plan a drive into Mexico, you might need to purchase separate tourist coverage from a Mexican insurance provider.

Even if you stay within your home state, you should make sure you have the legal minimum coverage before hitting the road. In Colorado, drivers must carry at least $25,000 to cover one person's injury or death in an accident, $50,000 for total injury or death in an accident, and $15,000 in property damage coverage.

2. Boating

Summertime compels many people to enjoy aquatic activities such as fishing. However, the right insurance coverage matters just as much for boaters as auto insurance does for drivers. Even if your homeowner's policy extends to your boat, that coverage may come with unacceptably strict limits.

If you have nothing more than a canoe or a relatively small, slow, low-powered craft, you may find your homeowner's coverage sufficient. However, if you have a personal watercraft, jet boat, large sailing vessel, yacht, or any boat that goes faster than 25 miles per hour, you should purchase a separate marine insurance policy.

Take a look at how your policy sets damage amounts. If your policy pays actual cash value, you may save money on the premiums, but you'll only receive the equivalent of the boat's current market value. Agreed value costs more each month, but you'll get the full compensation originally agreed on when you purchased the policy.

3. Backyard Events

Backyard barbecues, pool parties, and other outdoor events can brighten your summer. However, grills, swimming pools, trampolines, and other recreational equipment can also pose certain risks that you'll want to cover with the proper insurance.

A typical homeowner's policy includes personal liability protection that can help pay expenses in the event of an accident or injury. Even so, you should review your coverage limits and consider raising them if they make you uncomfortable. Alternatively, umbrella coverage can pick up where your homeowner's coverage maxes out.

Your current homeowner's policy may not account for every backyard amenity on your property, especially if you purchased them after you purchased the policy. Your insurance agent can tell you whether your coverage includes liability for incidents involving specific recreational tools or equipment.

4. Fireworks

Summer festivities in the U.S. include recognition of Independence Day. In addition to cookouts, outdoor concerts, and other activities, some individuals may decide to set off seasonal fireworks.

Thankfully, homeowner's insurance typically covers fire damage, giving you peace of mind when you hear those fireworks in the neighborhood. Review your homeowner's policy to ensure that you have enough coverage to rebuild or replace personal possessions following an accidental fire.

The addition of new features and rising real estate values over the years may mean that your current level of coverage won't completely make up for fire-related losses. Get into the habit of reviewing your coverage limits every few years and adjusting them according to your insurance agent's recommendations.

Bear in mind that while different areas of Colorado have somewhat different fireworks laws, any firework that must be lit or ignited violates city laws in Denver. If your property sustains fire damage because you set off fireworks illegally, your insurance provider may choose not to compensate you for that damage.

5. Summer Storms

Colorado sees more than its share of summer storms. A heavy storm can cause a tree or branches to fall onto your home or may cause your own tree to damage your neighbor's home or vice versa. Either way, you'll want to know that you have updated homeowner's insurance to help cover the damage.

Hailstorms can also harm Colorado roofs. Even though your homeowner's insurance will cover you against this scenario, think about whether you can or should fix the damage yourself before filing a claim that might impact your premiums.

L.A. Insurance can discuss your Colorado insurance needs with you and make sure that you have the right coverage to protect you this summer and all year round. Contact us today to learn more, tell us about your concerns, and get a quote.