Home Owners Insurance?

[bulmer4nc]

Has anyone had to do anything with their Home Owners Insurance to ensure that the new hot tub is covered under your policy?  I haven't contacted my insurance company yet but thought I'd ask here first to see what everyone else is doing...

[Netnutty]

Good question. I didn't think about it. I'm interested in knowing what others have done also.

Netnutty

[Brewman]

I haven't done anything, either.  Never dawned on me.

I'd think that any physical damage to the spa itself would be covered, as long as it was an insurable event, like a storm, or something that caused the damage.  
The liability portion of the policy should cover any injuries you guests may incur using the spa.

It is probably a good idea to be sure you have enough liability coverage.  
Read your policy to see what is excluded, and or call your agent.  

Brewman

[Spa_Tech]

I might have a little experience with this.

Not long ago I was contacted by a home warranty company to render repair on a spa. While home warranty is different than home owners insurance, I suspect that many of the standards are the same.

Specifically, I was asked by the home warranty company details about the spa, which under their coverage would cover an in-ground/static spa, but not a portable, self contained spa. Because they viewed this home owners spa as an 'appliance' rather than a fixture in the real estate they wouldnt cover a repair on his portable spa.

Id be very specific in describing your hot tub if youre planning on including it on your home owners coverage. A misunderstanding may have you paying a premium for something that the insurance company will not cover.

[UnderTheStars]

Hmmm, I actually have a lot of experience with this since  homeowner's insurance is my current (3rd career.)

Portable spas are considered personal property by your homeowner's policy (same as your couch, clothes, tv, etc.)  They are not covered as part of the dwelling or house structure (walls, roof, etc.)

Personal property is covered for named perils (Wind, fire, theft, etc.)  Most homeowner policies will list just over a dozen specific "named peril" coverages.  The policy deductible applies.  that means if wind (covered peril) damages the spa cover, it's a covered loss.  However, if your policy deductible is $500 and the cover costs $300 - there's no policy pay-out.  If you feel you need to increase your homeowner's coverage 'cause you bought an $8000 spa, you should increase your personal property coverage (not the dwelling coverage.)

You also have liability coverage.  This would kick in if someone is injured and you are found responsible.  Many people who put in a pool increase their liability coverage (neighborhood kid comes in the back yard when you're not home & drowns - you will need this coverage.)  Conventional wisdom is fence the back yard if you put in a pool . . .same wisdom applies to a spa.

Discuss with your insurance agent.  They are licensed professionals who can guide you on all of the above and help you decide what coverage limits are right for you.
Stars

[r100rs]

I would tend to agree with - Underthestars - except in one instance.  I believe it is considered personal property if all you have to do to move it is disconnect the electrical and drain it.  If you have it bult into a deck it becomes real property (i.e. part of the house), since you now have to dismantle the deck to remove it.   A real estate attorney or a realtor should be able to answer that question.  I could be wrong. But once you have the answer you'll know which portion of your insurance will cover it.

r100rs

[UnderTheStars]

Good point r100rs, here's the technically correct (insurance) answer:  To be part of the realty for insurance purposes it has to be screwed, bolted, or otherwise affixed to a permanant foundation.  This is the definition a claim rep will use to determine  if it is pers. property or part of the structure.  The easy way to determine:  If you could turn your yard & house upside down, everything that falls is personal property (your watch, end tables, pictures hung on the wall, hot tub, etc.)   Everything that stays put is structure (house, wall-to-wall carpet, fireplace mantle, etc.)

Usually when people say "built-in" they simply have built a deck around the spa, or dropped the spa into a hole in the deck.  In that instance it is still personal property, not part of the structure.  On the other hand, a cement in-ground spa would not be personal property (covered as part of the structure or detached structure.)  A mini-yard barn is "personal property coverage" if sitting on treated skids.  The same yard barn becomes "detached structure coverage" if bolted down to a permanent foundation.

Bottom line, talk to a licensed insurance agent if questions.  They are competent in this and many have an insurance degree (CPCU.)

[chaz]

Underthestars is dead on in his understanding.  Not to offend anyone, but do not ask your realator or realestate attorney as they are not trained in this area and really don't know most of the time.  Your insurance agent is the one to ask and he will make sure your liability is appropriate.  If you don't have an agent, good luck to you.

[Stl_Looking]

I have State Farm and "added" it to my policy the day after getting the tub delivered.

They code it as a "dwelling extension".  Being that my coverage for "dwelling extension" already greatly exceeded the price of the tub, I did not have to increase this value.

I did, however, double my liability coverage.  All in all, it came up to be $12 a year.

[doodoo]

UTS is bang on. I called my insurance agent before taking delivery of our tub to get the low down and make any adjustments to our insurance policy. Our tub is personal property because of all of the reasons and definitions provided by UTS.  It is very much the same for our above ground pool. So no adjustments were needed to our policy.

The liability question must also be addressed for the stupid kid that lives next door. (Although the kid next door is dumb as a door nail, I would'nt mind the mother coming over for a soak   she is an 11 on the 10 scale  ) Should he come over while we are not here or while we are here, and decides to drown in my pool or tub, our house liability is there for coverage. increased it to $2 mil BTW because of recent payouts that have been higher in$$ value. Yes even in Canada these are increasing.

What the insurance policy states is that the homeowner must meet building codes and as such that means that locked or fenced items must be in place.  For the tub the cover that locks is deemed to meet codes and thereby meet the insurance policy. Got this in writing.