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MANAGING YOUR RISK - JULY 2007

Taking a Vacation? Here’s a Few Insurance Tips
By Anthony Bevilacqua

Planning a vacation by car, boat or plane? Will you be traveling within the United States or outside the country? Along with preparing your checklist of items to take with you and confirming your travel itinerary, here are a few insurance tips to assure your well deserved vacation doesn’t turn into a nightmare.

Rental car collision damage waiver – the car rental agreement makes the renter financially responsible for many factors beyond the coverage provided by either a personal auto policy, a business auto policy or the coverage included with some credit card companies. For this reason, all the insurance pros recommend buying the waiver when you rent a car. Yes, it can be expensive, but the cost outweighs the headaches you’ll suffer if you don’t buy it.

Renting a car outside the United States – a standard personal auto policy does not provide liability coverage when you rent a car outside the United States, Canada and Puerto Rico. Driving in or into Mexico requires very special Mexican auto insurance, too! Consult with a travel professional and your insurance professional about the proper protection.

Personal Liability – a standard homeowner policy contains a clause that limits personal liability coverage to lawsuits arising from activities in the United States, Canada and Puerto Rico. Some homeowner policies provide worldwide liability coverage. Check with your insurance professional if you plan to travel outside the standard coverage territory to assess what coverage you have, or don’t have.

Personal Effects – a standard homeowner policy covers your personal effects such as clothing, luggage, laptops, golf clubs and valuable articles (jewelry, furs) worldwide against damage or theft. The policy deductible will apply. For vacationers that have larger deductibles on their homeowner policy, it might be wise to buy baggage insurance from the airline or travel agent. Typically, the deductible for this insurance is very low, but keep in mind the coverage might be limited to $500 per bag.

Travel Accident Insurance – this insurance is almost a must have if you travel abroad. The policy provides medical expense coverage, emergency medical transportation expense coverage and other emergency medical expense reimbursements to a traveler injured for any reason while out of the country. The emergency medical transportation expense coverage or repatriation expense coverage is a reason alone to have this protection. There are many companies offering coverage on-line. Cost can range from $75 to $195 per traveler.

Everyone loves to vacation. Keep these insurance travel hints in mind the next time you plan one to assure it will be as peaceful, interesting or exhilarating as you envision it to be.

Anthony Bevilacqua, CPCU is President of Anthony & Company, an independent insurance agency with special insurance and risk management services tailored to the needs of the commercial and residential development community. You can reach Mr. Bevilacqua at (908) 806-8844 or email him at insure@anthonycompany.com.

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