Jet Skis
Question
"Joe is visiting a friend at the beach. The friend says take my jet ski for a ride, which Joe gladly does. Subsequently he hits some rocks with the jet ski causing $1,800 worth of damage. The friend does not want to submit the claim to his HO carrier. Joe feels an obligation to take care of the loss. What coverage is there under Joe's Homeowners policy, if any?"
Answer
The ISO Homeowners policy HO-3 2000 edition provides up to $1,500 coverage for any watercraft property you own or use. If there's a $250 deductible, Joe's claim is $1,550($1,800 - $250), so the policy would pay the full $1,500 and the insured is out $50 plus his deductible, for an out of pocket expense of $300. This assumes that the loss is a covered peril under the policy. Your homeowners policy coverage may vary. Questions call your agent or give us a call at 952-469-0414.
Question
"I accidentally hit my friend's ski boat while riding my uncles' jet ski. The boat had insurance coverage, but the jet ski did not. The $2,000 worth of damage was understandably passed onto the jet ski but without insurance, it must come out of someone's pocket. As the driver, am I liable or is my uncle, as the owner of the jet ski, liable?"
Answer
The issue of whether or not you're liable is something that only a court can answer. A licensed attorney can give you an opinion however. It is not unlikely that you could be liable for a negligent operation and your uncle for negligent entrustment but, again, that's a question for someone qualified to answer with a knowledge of that particular state's laws.
From an insurance perspective, what has probably happened is that your friend's ski boat insurer has paid for the damage as a collision loss under his boatowners policy. Most insurance policies then give the insurer the right to subrogate against the party legally responsible for the damage. In other words, the insurance contract probably required your friend to transer his right to sue you for negligence to the insurance company.
Question
"I have a question regarding coverage for rented jet skis. Do most umbrella policies provide coverage for rented jet skis? I am trying to provide coverage for a client that will rent them and my carrier says no coverage exists under their form."
Some consumers own jet skis. Even more will rent or use one if they live or vacation near the coast, lakes or waterways. When they rent or operate a jet ski, probably the last thing that crosses our minds is what insurance coverage do we have. Is there homeowners coverage for damage to the jet ski or other property, or for bodily injury? What about coverage under a personal umbrella policy?
Answer
Most Personal Umbrellas do not provide liability coverage for rented personal watercraft. (Jet Skis). Perhaps one in ten might provide the coverage. It is difficult for people to determine what coverage if any will be provided by their umbrella policies. It is highly recommended that you call your Trusted Choice Insurance Agent prior to renting or purchasing a Jet Ski.