Ground hog day has just passed, and it appears that that a few more weeks of winter are still upon us! Don’t get distracted by this! Six weeks goes very quickly, and the spring will be upon us before you know it. All of us New Yorker’s know this means! Warmer weather, outside dining, outdoor barbecues on your apartment terrace
With all these good things to look forward to, don’t overlook the potential liability that can exist when utilizing the outdoor terrace space in your apartment. Most liability exposures can be addressed with an industry standard apartment insurance policy. Known in the insurance industry as an HO6, this type of policy covers many different types of perils. Fire, theft, water damage, explosion, vandalism, and liability are just to name a few.
For this article let’s focus on the liability portion of the policy. When having your outdoor barbecue, the liability section of the policy would cover you for the accidental fire you set while cooking burgers. It would also cover you for unintentional objects falling off the terrace and injuring someone below. Keep in mind that the liability section of your policy would only cover you during a “personal” event. If you are charging people to attend your barbecue, there would be no coverage afforded. For a situation like this you would need to carry personal event insurance.
In addition to the liability coverage that is offered on a standard HO6 apartment insurance policy, some people may want to opt for more liability coverage. A good option in this case is to purchase and umbrella policy. An umbrella policy is an overlapping liability policy that will activate when your initial liability coverage on your HO6 policy is exhausted. An umbrella policy is a great option for people that may have a lot of potential assets at risk. Personal umbrella policies have coverage levels that range anywhere between one and ten million dollars. You might be asking, “Why don’t I just purchase an umbrella policy instead of an apartment policy?” Unfortunately, the only way that the liability coverage from an umbrella policy can become activated is if you have underlying coverage with a homeowner policy (HO6 in this case).
We are all very excited for the warm weather to come! Make sure that an unexpected liability doesn’t deflate all that excitement! An HO6 apartment insurance can give you that peace of mind for as little as a dollar a day. If you have accumulated many assets, consider adding an umbrella policy for just a few dollars more!
David Goldstein, Insurance Guru Extraordinaire, AllState Insurance
To contact David about insurance questions go to his website here.