Does Owning A Gun Raise Home Insurance Rates
Does owning a gun raise home insurance rates?
A homeowner who does not have an alarm system may pay more for home insurance because his home is more likely to be burglarized. So, does a gun owner have to pay more for home insurance because having a gun increases the likelihood that someone will be shot?
Although insurance industry experts say "no," some lawmakers and gun advocates are taking steps to protect gun owners from future increases in insurance rates.
According to Michael Barry, a spokesman for the nonprofit trade organization Insurance Information Institute, home insurers do not charge gun owners more for insurance. "In fact, few, if any, home insurers will ask the policyholder if they own a gun or intend to keep one in their home," Barry says.
Gun accidents and home insurance
According to Barry, if someone is injured or killed as a result of an accidental gun discharge in the home, your home insurance policy will most likely cover it, just as it would cover other instances in which a person is injured inside your home.
However, as Barry points out, accidental discharges account for a small percentage of all shootings in the United States. According to the Centers for Disease Control and Prevention, accidental discharges accounted for less than 3% of firearm deaths in the United States in 2011, or approximately 850 deaths.
It's not so simple with intentional discharges. Assume you shoot an intruder inside your house. According to the International Risk Management Institute, many home insurance policies have "intentional injury exclusions," which mean they do not cover any intentional act of damage or harm.
However, just because insurance companies say they don't charge gun owners higher rates for home insurance doesn't mean they won't try in the future.
In Florida, state Rep. Matt Gaetz and state Sen. Tom Lee introduced bills that would make it illegal for insurance companies to charge gun owners higher rates. Lee's bill was eventually passed in April, and it is set to take effect on July 1. According to the bill, an insurer cannot cancel a policy or charge higher rates because the homeowner or a member of the household owns a firearm.
How much liability insurance is enough?
While home insurance provides some liability coverage for firearm-related damages, some question whether it is adequate. A standard home insurance policy includes at least $100,000 in liability insurance, which covers injuries or property damage caused by others in your home. A wrongful death lawsuit, on the other hand, could be brought against you if you shot and killed someone. Always ensure that you have the best liability homeowners insurance coverage.
If you lost the case, you could be held liable for attorney's fees, medical expenses incurred by the victim, and even damages to the victim's family to compensate for the deceased person's expected income. All of this could easily cost more than $100,000. For example, Shiver Hamilton, an Atlanta law firm, reported a $1.4 million wrongful death settlement in an apartment shooting.
While you can increase the amount of liability insurance you have, some insurers have a limit. Travelers, for example, allows homeowners to purchase up to $500,000 in liability insurance as part of a standard home insurance policy.
A number of states are debating whether gun owners should be required to purchase a certain amount of liability insurance to cover the costs of shooting injuries or fatalities.
- In January 2014, legislation was introduced in New York that would require gun owners to carry at least $250,000 in liability insurance.
- In Connecticut, Gov. Dannel P. Malloy issued recommendations for gun safety reforms and requested that studies be conducted to determine whether requiring gun owners to purchase additional liability insurance would be feasible.
Alternatives to extra liability insurance for gun owners
While gun advocates such as the National Rifle Association (NRA) are opposed to mandatory liability insurance, many people support the idea of gun owners having the option to purchase additional insurance if they so desire. One option is to purchase an umbrella policy, which provides liability coverage in excess of that provided by a standard home insurance policy.
Another option is to purchase specialized insurance. For example, the NRA collaborates with insurance provider Lockton Affinity to provide its members with personal firearms liability insurance, which covers gun owners for up to $1 million in liability suits if they accidentally injure someone while hunting or shooting at private shooting ranges.
Self-defense insurance, which protects gun owners from liability charges if they shoot someone at home while protecting themselves, and retired law enforcement officer self-defense insurance, which protects retired and off-duty officers from liability in self-defense cases, are also available through Lockton Affinity.
According to the Insurance Information Network of California, specialty firearm liability policies typically cost between $130 and $300 per year.
How to insure expensive guns
Not only may gun owners desire more insurance to protect themselves from liabilities, but they may also desire more insurance for their firearms. If you have a gun collection or your firearms are particularly valuable, you may require additional coverage. Assume your valuable firearm collection has been stolen. Even if your collection is worth $10,000, your home insurance policy may only pay up to $2,500 for the loss. Some home insurers will allow you to purchase a rider, which is an add-on to an insurance policy that provides additional coverage.
Another option is to get firearms insurance from a specialized insurer. Sportsman's Insurance Agency, for example, provides nationwide coverage not only for gun replacement but also for firearm accessories such as cases, extra barrels, and rifle scopes.
"Our customers frequently tell us that their homeowners insurance company simply does not understand the specialty firearms market," says Bill Stephens, a spokesman for Sportsman's Insurance Agency. In fact, he adds, some customers have complained that their home insurance provider "balked at insuring expensive firearms."
Another advantage of purchasing a separate policy from a specialty insurance provider is that you will not have to worry about your home insurance policy increasing if you file a claim for your firearms.