Liability Coverage for Lake Cabin
I’m wondering if it’s possible to obtain liability-only coverage for a lake cabin that was renovated without any permits for the structure, electrical, or plumbing.
My father passed away last year and left the property to my sister and me. The cabin is actually a mobile home that he completely remodeled into a cabin, but he didn’t get any permits for the work. It’s currently valued at about $90,000.
I live far away and have no personal interest in the place, but it holds significant sentimental value for my sister, who lives nearby.
I doubt we could secure a full homeowners insurance policy given the circumstances, but I want to ensure I’m not held liable if someone gets injured while I’m living my life across the country.
It’s understandable that you want to protect yourself from potential liability issues, especially with the unique situation regarding your lake cabin. Here are a few options to consider:
Liability-Only Coverage: Some insurance companies may offer a liability-only policy for properties like yours, especially if it’s not being occupied full-time. It’s worth reaching out to multiple insurers to discuss your specific situation, as coverage options can vary widely.
Landlord Insurance: If you plan to rent out the cabin or let your sister use it, landlord insurance may be another option. This typically includes liability coverage as well, although you should clarify how it applies given the unpermitted renovations.
Umbrella Insurance: If you have other policies (like auto insurance) with an insurer, consider asking about an umbrella policy. This type of coverage provides additional liability protection above and beyond your existing policies, which might cover some of the risks associated with the property.
Risk Assessment: Since the cabin has unpermitted renovations, be sure to inform the insurance company about its condition. This could impact your coverage options and premiums, but honesty is crucial to avoid issues if a claim needs to be made.
Legal Considerations: It might be worthwhile to consult with a lawyer about the implications of the unpermitted work on liability and ownership issues. They can provide guidance specific to your state’s laws.
Maintain Communication: Keep an open line of communication with your sister about the property, as her involvement might lead to different insurance needs or options.
Ultimately, it’s essential to explore various insurance options and discuss your concerns with potential insurers to find the coverage that best fits your needs while minimizing your liability.