Central Lakes Insurance Brokers wants you to understand how your recreational insurance works with other insurance policies you own.

When you have more than one policy, your Edina, MN home insurance liability pays out first, if an accident occurs with your RV. Your recreational policy pays out after you exhaust the liability from your home policy. If you have umbrella insurance, this kicks in after the recreational policy.

When would this occur? Let’s say you take a vacation with your family and next-door neighbors. The six of you travel in your RV. While on the trip, one of your neighbors falls down the steps leaving the RV, and breaks his leg.

First, the liability portion of your home owner’s insurance pays for the medical costs. Perhaps the break was really bad and required surgery. This caused the medical bill to exceed the liability coverage of your home policy.

Your recreational policy covers the rest of the medical bills. Let’s say the medical bills maxed out the liability coverage on this policy, too. That is when your umbrella insurance kicks in. It covers the remainder of the costs.

Your RV policy also covers the physical damage to your RV. Perhaps when your neighbor fell, they grabbed for a handrail or the RV door and that made matters worse. They tore part of the door down and entangled themselves in the steps, wrenching it partway off of the RV. Your RV policy pays for the RV repairs, too.

Central Lakes Insurance Brokers of Edina, MN wants you to understand your insurance policy and how it works with other policies. Knowing the inter-workings of your insurance policies helps you make informed decisions about coverage amounts and policy riders. Call us today for more information.