How Your Hobbies Can Impact Your Insurance
Hobbies that involve expensive collections like, art, musical instruments, and guns can require additional insurance coverages. While other hobbies, like extreme sports, can make finding life insurance next to impossible. Since January is National Hobby Month, we thought that this would the perfect time to review this information with you.
Extreme Hobbies and Life Insurance
What exactly is an “extreme hobby?” Every insurance company classifies them all a little differently but a few are standard:
- Mountain climbing
- Bungee jumping
- Scuba diving
- Flying a plane
- Automobile racing
- Back-country skiing
- Extreme watersports
Any activity that puts you at higher risk of dying of unnatural causes is going to make getting even the most basic life insurance policy much more difficult. Why? Because based on your lifestyle, the insurance companies see you as a greater-than-average risk. Even with all the safety precautions you take, you’re in a more extreme situation. Even if you can find life insurance, your premiums will likely be higher than the hobbyist who prefers to keep their feet on solid ground.
Rates and Disclosure
Shopping around for life insurance is important because there is no standard cost for an extreme hobby. Each insurance company creates their own rates and policies for how to handle your hobbies. Your hobby, of course, won’t be the only factor to determine your rate - age, overall health, and other factors still play a part.
If you’re thinking of fibbing about your hobby to save money, don’t. Your insurance company could withdraw payment and benefits to your family if you die in a hobby-related accident that you never disclosed to them. Don’t put your family in that situation to save money on an insurance policy.
Insurance for Your Expensive Collections
What do you like to collect? Cars, art, antiques, guns – something else? Your homeowner’s insurance likely won’t be able to cover the real value of your collection. Some collections are valuable one year and worth very little several years later - think Beanie Babies. Others grow in value over time.
Your standard homeowner’s insurance policy isn’t designed to replace a priceless heirloom or valuable collection. You’ll need specific coverage for your collections to make sure the value of your collection is protected - even if the collection itself is irreplaceable. Additional riders can be purchased to cover your valuables or you may want to ask about collectibles insurance as an option.
Protect yourself, your family, and your hobby with the right kind and amount of insurance. Here at Ross Insurance, we’re here to help you insure everything that matters most from your home to your art collection and everything in between. Contact us today!