Gene Kearns wrote in
:
On Mon, 16 Jul 2007 18:21:12 -0400, "JimH" ask penned the
following well considered thoughts to the readers of rec.boats:
"Hamish" wrote in message
hlink.net...
I am in California. I just got the renewal bill for my personal
umbrella policy, and the "Important Notice" brochure that always
comes with it said, "The definition of insured is revised so that a
person or organization using an insured's auto, RV or watercraft is
no longer covered." So, when I let a valet park my car, he's not
covered. If I loan my car to a friend, relative, or neighbor,
they're not covered. If my ski boat was running - it isn't right now
- and I let a friend drive it to tow me, he's not covered. (Yes, I
know that my "underlying" car insurance covers them up to the limits
of that policy, but those limits are only enough to pay for a stubbed
toe.)
I called my agent and she was totally unaware of the change, and
asked me to fax her a copy of the brochure. Then, once she called
the underwriters, she still seemed unconcerned. She was happy to
quote me the increase in premiums to bring each of my car polcies up
to the same limits that were formerly covered by the Umbrella. An
additional $206 per year. I will pay the money, because I own a home
and it is vital that I remain insured up to a high limit.
I have taken the trouble to write this post because I think that a
lot of other people will fail to read the "Important Notice" (the
brochure is 17 pages long), will simply write the check like they do
every other year, and will end up with a big gap in their coverage.
And their insurance agent won't take the trouble to call them or
write them a personal letter telling about the big gap that just
opened up in their coverage. So, look out! And warn your friends.
Ham
1. The valet company should have their own insurance.
*You* pay insurance premiums to make sure *you* are covered. Don't
assume that anybody else has you covered (they don't, though they may
try to indemnify themselves). If you have to take them to court, be
sure that you can afford all of the justice that you feel you are
entitled to....
2. Don't loan your car or boat to anyone outside your family.
Ok, I'll buy that, but it doesn't cover any non-loaner legitimate use
of your vehicle. Boats? Marina re-positioning your boat to another
slip (see? says they can do it in the lease agreement..... Personal
injury? You have a dangerous boat! Damage? See no evil, hear no
evil...... see #1 above)
3. Why should the insurance company cover anyone but you and your
family?
Because there *are* no-loaner issues to be dealt with....
So what is the big deal?
You have equity that other people want.... it really is a BIG DEAL!
While admittedly, I don't have the policy you are describing, so I can't
read it, I think you are misconstruing the change. What State Farm is
saying I believe is that your friend who borrows your boat is no longer
an insured on the umbrella, so if he borrows it and kills someone, no
insurance for him, at least from State Farm. But that doesn't mean that
you aren't still an insured if someone sues you as the owner of the boat
(they would probably claim you were negligent to loan the boat to someone
so obviously unskilled). You are still an insured. Same with the car. In
California, car owners are liable for injuries caused by their car no
matter what, even if not negligent and not driving, up to $15K for injury
to one person and $30K for injury to multiple persons and $5K for
property damange. Thus if you loan your car to someone who causes an
injury or damage, your auto insurance will cover you up to these limits
(by law). But if the umbrella insurance company made your friend an
insured, they would have to pay up to the limits of the insurance,
because your friend's liablility (assuming he is found to be the
negligent driver)is not limited. So by eliminating your friend as an
insured, they limit their liability. It's really your friend who is
screwed here, not you. Moral of the story, YOU should never borrow
someone else's car or boat unless you are sure YOUR insurace covers you.