Homeowners Insurance and Trampolines

Written by on 11/19/2013 10:00 AM . It has 0 Comments.

Homeowners insurance and trampolines do not play well together. “Why?” you may ask. Because they’re causing more claims, and big dollar ones to boot. Remember, insurance is ALL about risk. The more risky, either the more premium you’ll pay or in the above example, the insurance company will choose to avoid the risk altogether.

SO WHY ARE HOMEOWNERS INSURANCE COMPANIES SO CONCERNED ABOUT TRAMPOLINES?

  • Kids are falling off and breaking their necks. Not EVERY kid, but enough that the insurance companies know it’s not a matter of if, but when.
  • As an “attractive nuisance”, you are still liable for injuries sustained, even if the person is on your property without your permission. No ifs, ands or buts. Your property- you’re on the hook.  So if little Johnny from down the road sneaks onto your property and falls off, sustaining serious injuries, it’s all you baby. Or in this case, the insurance company.
  • If someone does sustain a life-altering injury (think paralysis), then I’m pretty confident the insurance company will pay out the maximum policy amount (think $300,000).
  • If you have an umbrella policy, that would step in next (if coverage does apply. In the event of a fatality, it wouldn’t surprise me if the total umbrella amount is paid as well. Most umbrella policies begin at $1 million coverage.

IN MY WORK WITH HOMEOWNERS INSURANCE AND TRAMPOLINES, HERE’S A SAMPLE OF THE ACTIONS MY COMPANIES ARE TAKING:

For new business (if a trampoline is on premises). And please note, some of these are not mutually exclusive. Insurance companies may do a combo if they decide to insure the house at all.

  • They will decline to insure the house.
  • They’ll insure the house with a mandatory trampoline exclusion (meaning if someone is hurt as a result of the trampoline, YOU get to pay the medical bills. The insurance gets to walk away).
  • They will insure the house, but only if the trampoline is enclosed on all sides with a safety net.
  • They will add a “nuisance surcharge”- I’ve seen $100 per policy.

10/12/2012  By Carrie Reynolds

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