A hot tub is relaxing, but it’s also dangerous. Injuries and drownings are more common than you might think. If you own a hot tub, or you’re thinking about getting one, you need to make sure that you have the right insurance coverage in place.
Liability Coverage Can Protect You If Someone Gets Injured
Drownings and slip-and-fall accidents in and around hot tubs can lead to serious injuries, and sometimes even death. The liability portion of your homeowners insurance policy can cover medical bills and other expenses if someone visiting your home suffers a hot tub-related injury. Due to the risk associated with hot tubs, your insurance company might require you to raise your liability coverage limit.
A Hot Tub Might Fall under Your Other Structures or Personal Property Coverage
The location of your hot tub can play an important role in your coverage. Some hot tubs are attached to a house, while others sit in the backyard and are completely detached from the house. Depending on your circumstances, a hot tub might be covered by the other structures or personal property section of your insurance policy.
Each part of your policy has its own coverage limit. Your level of coverage for other structures will typically be a percentage of your policy’s liability coverage. You’ll get to select your level of personal property coverage. It should be high enough to cover all your belongings if a disaster strikes and everything you own gets damaged or destroyed.
You Can Choose Replacement Cost or Actual Cash Value Coverage
Homeowners insurance can pay for the cost of repair or replacement if your hot tub gets damaged by a covered peril. The amount that you’ll receive will depend on whether you have replacement cost or actual cash value coverage. Replacement cost coverage will give you enough money to buy a new hot tub, while actual cash value coverage will give you an amount that’s equivalent to the hot tub’s value after accounting for depreciation.
Make Sure You Have the Right Insurance Coverage
A hot tub may or may not be covered under a standard homeowners insurance policy. Some insurers will require you to purchase a separate endorsement and pay higher premiums. Before you buy a hot tub, check with your homeowners insurance company to find out if your current policy will cover it or if you’ll need to purchase additional coverage.
If you want to shop around and compare rates, tell the insurance agent or customer service representative that you have or plan to get a hot tub. Discuss the hot tub’s design and location and how the insurer will classify it so you can get coverage that fits your needs.
