North Florida Amateur Radio Society
W4IZ Jacksonville FL
nofars.net
Editor: Billy Williams, N4UF
n4uf
These articles are from the March, April and May 2010 issues of the Balanced Modulator.
INSURANCE FOR HAMS
By Billy Williams, N4UF
The February NOFARS meeting topic was "Insurance and Amateur Radio." We covered provisions in common home owners policies. Coverage may vary, so check your policy to verify whether details in this article apply in your case. If in doubt, consult your agent.
I reviewed policies issued by Citizens, State Farm and Sunshine State Insurance companies. These were Form HO-3 policies which most home owners seem to have.
ABOUT INSURANCE IN GENERAL
Policy limits are important since these determine the maximum coverage of a policy. Look at the declarations page or summary of coverage & limits, usually contained near the front of the policy paperwork. Limits for your dwelling, other structures such as sheds and outbuildings, personal property and loss of use are specified. These may need to be increased (or decreased) to fully cover you.
Secondly, the deductibles for personal property and structures should be noted. The deductible is the amount of out-of-pocket expense that you will pay before an insurance company starts to pay for a loss. Common deductibles are usually between $100 and $2,500. Higher deductibles usually apply for damage caused by hurricanes. These are generally between 1% and 5% of the value of a home or personal property.
Higher deductibles usually mean cheaper premiums. In many cases, you will come out ahead over the long term by getting a higher deductible and building up a reserve fund to cover deductibles. This is a form of "self-insurance."
Policies may reimburse for the full replacement value of a damaged or lost item or for a lower depreciated value. The depreciated value may be less than half of replacement cost. It may be worth a higher premium to have replacement cost coverage or you might want to partially self-insure by having depreciated value coverage.
To be covered, a loss generally must be caused by a sudden occurrence. Among losses covered are those due to lightning, fire, windstorm, power surges, smoke, falling objects, riot, explosion, vandalism, busted water pipes, theft. Home owner policies do not cover damage due to floods or rising water. A flood insurance policy is needed to cover these hazards.
Coverage C on most policies pays for damage to personal property including clothes, furniture, equipment, etc. Exclusions are usually listed where no coverage is provided and special lower limits may apply to items such as money, firearms, collectibles and jewelry. I could not find ham and electronic gear listed among exclusions in the policies reviewed.
There may be a requirement to specifically list and describe some items when a policy is issued. These items must be scheduled (itemized) ahead of time in order to be covered.
Some personal property may be covered even while outside your home. But in the policies I reviewed, electronic equipment mounted in a vehicle is NOT covered. For an extra premium, riders may be added to some policies to provide additional coverage.
Whether your equipment is specifically listed when a policy is purchased or not, it is very important to have a detailed inventory and documentation for your items.
Home owner insurance policies are subject to limitations that may diminish coverage of equipment related to Amateur Radio. Deductibles may be high and some gear may not be covered.
INSURING YOUR AMATEUR RADIO EQUIPMENT
Even if your station is covered by your home owner insurance policy, in states like Florida where home owner insurance may be hard to find, I do not recommend filing claims unless you suffer major damage...thousands of dollars. Insurance companies may raise your premiums or cancel your policy for filing even small claims.
A better alternative may be taking out a specialty insurance policy. Two sources of all-risk ham gear insurance are ARRL and Ham Radio Insurance.
ARRL insurance covers your mobile and home station equipment on an all-risk form which includes fire, lightning, theft, collision, and other accidents and natural hazards. Loss or damage to antennas, towers or rotators is covered. Coverage is also provided for computer software for up to $1,000 and hardware you have scheduled (listed on the policy application) including related accessories.
You must insure all pieces of equipment including mobile and home station equipment, and also any related ham gear accessories--including antennas, towers and rotators--that are owned or leased by you.
The ARRL All-Risk Ham Radio Equipment Insurance Plan is available to all members of the American Radio Relay League who reside in the United States. See https://arrlinsurance.com/
Annual premium is $1.50 per $100 of replacement cost value (minimum premium is $20). A $7 administration fee is added to your total premium. For example, if the replacement value of your equipment is $3,200, your annual premium is $48 plus the $7 fee. The deductible is $50 for each claim.
The other major source of specialty equipment coverage is Ham Radio Insurance http://www.hamradioinsurance.com which is underwritten by the American National Fire Insurance Co. Annual premium is the same as with ARRL insurance--1.5% of the amount of insurance you purchase. You can choose which gear you will insure. For example, if the replacement cost of your equipment (excluding towers, antennas and rotors) is $2,000, your annual premium is $30. For an additional 1/2 percent you can add mechanical breakdown and electrical damage coverage.
If coverage for your antennas, rotors and towers is desired, an additional premium of 3% is added for the replacement value of your antennas, rotors and towers. The minimum policy premium is $25.00.
Both sources have good histories of honoring claims. These also are options for those who do not own their homes.
Lawsuits related to Amateur Radio activity are very rare. You are much more likely to be sued because of an auto wreck or someone being injured on your property. But if you have substantial non-homestead assets, you might want to review the basics of liability.
LIABILITY INSURANCE
Liability insurance protects you from monetary loss due to lawsuits caused by your negligence or acts that cause injury or property damage to others. It also pays for your legal defense if you are sued.
For hams, a suit could be the result of a tower that fell, RF exposure, or a frivolous suit filed by a neighbor.
In Florida, if your tree falls and damages someone elses property, you probably will not be made to pay. With few exceptions, the user of the property where the tree hits generally has the problem. This is not the case with towers. If the falling tower were caused by severe weather or hurricane, the owner could have less liability than if it fell due to corrosion.
But in most cases, fallen towers mean big legal bills if someone is injured. Frivolous lawsuits cannot be ignored. One person threatened to sue a ham who lived two miles away because she thought his radio signals were jamming her head. Even when those types of lawsuits are thrown out, legal costs can be significant.
To put probabilities into perspective, it is very important to realize that the chances of an Amateur Radio operator being sued as a result of ham radio are extremely low when compared to the likelihood of being subjected to a lawsuit resulting from an automobile wreck. But if you are unlucky, a liability suit has potential to be very costly.
Most home owner policies provide insurance to pay damages up to $100,000 to $300,000 awarded in a court judgment. Coverages E and F provide payment for bodily injury, medical expenses and/or property damage that you or a person insured under your policy is legally obligated to pay.
Home owner coverage does not include damage caused by operation of motor vehicles. Good auto policies include liability coverage up to $300,000 to pay for vehicle crashes.
KRYPTONITE TO LAWYERS
If you own few assets and/or have a lot of debt, a potential lawsuit plaintiff and their attorney will probably decide that you are judgement proof. Money is not there to pay a court judgement, so plaintiffs get only a document, called a judgement, if they sue and prevail.
If you win a big lottery or get a large inheritance during the next 20 years or so, the plaintiff may come out ahead. But otherwise, a lot of money is spent for paperwork with only a small chance to be paid. Most lawyers figure the economics out quickly and move on to more lucrative targets.
While homestead property in Florida is mostly exempt from being seized to satisfy a damage judgment, other assets such as bank accounts, stocks, bonds, personal property, etc. may not be exempt.
PROTECT YOUR ASSETS
If you have substantial assets, a good purchase is an extended liability insurance policy which protects you from court judgments up to $1,000,000 to $5,000,000. The annual premium is roughly $100 to $200 per million dollars of coverage. This is usually called an umbrella policy and can be written by most car and home owner insurance companies. The umbrella policy works in conjunction with your home owner and auto policies to extend your protection against most any type of civil damages up to the extended maximum.
INSURANCE FOR GROUPS AND CLUBS
Ham radio groups can obtain a commercial general liability insurance policy. Any group which holds gatherings open to the public should be covered by liability insurance. Usually the owner of the property where a gathering is held will insist that the group provide proof of liability insurance.
The property owner where an incident takes place is most vulnerable to a lawsuit. Participants and individuals who may have been negligent can also be targets. Sponsoring groups and their members also might be subject to a lawsuit. Commercial general liability insurance defends the group organization itself and host property owner.
It does not cover actions against individuals alleging negligence though the liability portion of their home owners policies may.
-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.
INSURANCE TIPS FOR HAM RADIO AND EQUIPMENT
By Mike Davis, N4FOZ
- Documentation: Ham gear, guns, jewels, and tools are among the toughest items to deal with in insurance claims as all have long lifespans. That is why proper documentation of the value, when purchased, and a good photo of the item is important. Keeping the Owner's Manual is a document that can be used as further proof of ownership.
- Self Insure? Replacement Coverage? Scheduled Coverage? It is important to understand each and what losses you can face. Remember that "modern America tends to insure" (Insurance Industry Institute, 1982), but times are changing. Years ago a Claim for a stolen bicycle was acceptable, but today most coverage is meant to be for more "Catastrophic Losses". If you continue to have a "Claim Count" on your record, your premium could substantially rise or your coverage cancelled entirely. You will then find getting new insurance very difficult and costly.
- Recourse: You do have rights under the Policy. If your claims is not handled properly, delayed, or you feel there is a problem, your first course of action should be to contact the Claims Manager of the company. If that does not resolve the problem, contact the Florida Dept. of Insurance and file a Formal Complaint. Insurance Carriers do not like that on their record AT ALL, and will usually make an expedited effort of resolution. If that does not work, sue the company and make sure you settle for your loss amount, plus court costs, travel fees, time lost, and time to pursue the legal action.
- Further, understand that insurance is not a "right"; it is simply a contract between a company and an entity or person. Every state must conform to Dept of Insurance Regulations, so most all Homeowner's Policies are very close to the same and have changed little since the 1850's.
- Finally, remember that "Notice to the Agent is deemed notice to the company". When the Agent is trying to SELL you a Policy, make sure you tell them of your Ham equipment and get a note or email from them stating your equipment is covered and to what extent. If a Claim is later filed, that statement can speed up the claims process.
Whenever you talk with any insurance company personnel for any reason, keep a log with their name and position, including everything they promised. It can come in handy!
.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.-.
TOWER AND ANTENNA LIABILITY
by Mike Davis, N4FOZ
Liability for damages relating to you or your property happen rarely, but can be very costly. This article looks at the potential liability of your Radio Tower or Antenna.
TYPES OF LIABILITY:
-DIRECT/NEGLIGENT LIABILITY
A "reasonable, just and prudent" person must install, maintain and operate a tower with "due care and caution". If the tower somehow damages someone or their property, the owner may liable for damages.
-TORTS/INJURIOUS ACTS OF LIABILITY:
When a person deliberately causes injury to another person or property, they have committed a tort. If your neighbor does not like your 6m FM operation and you show him how your tilt tower tilts the other way, right into his living room, a tort has been committed.
-VICARIOUS LIABILITY:
This Liability usually occurs when a person working for you or at your direction causes a liability. If you tell your workers that the electric company coats those overhead wires with rubber and just go ahead and rest the tower on those high voltage lines, you can be held liable. "Respondeat Superior" mean "let the master answer".
-PRODUCT LIABILITY:
If the commercial tower fails, the manufacturer may be liable. However, if you, as the consumer, altered or added to the tower components in any way, you may be liable because of the changing of specifications.
-ACTS OF GOD:
If a tree in good condition falls on a neighbor's roof in a storm, the property on which it lands is responsible and is called an "Act of God". However, if a tower falls on a neighbor's roof, there will always be questions as to the condition of the tower before the storm.
FOUR STANDARDS OF LIABILITY:
1. One must be legally bound.
2. One must have failed to perform.
3. A loss must have been suffered.
4. The act must be the proximate cause.
FACTORS IN A LIABILITY CASE:
CONTRIBUTORY NEGLIGENCE - 51/49% in determining liability.
COMPARATIVE NEGLIGENCE: a % VS % of liability by comparison. "Johnson's Law of Comparative Fault" You are 10% wrong just for being there.
ASSUMPTION OF RISK: This becomes an interesting test of liability if one erects a tower in an emergency, for example a Hurricane, and the tower falls and causes damage or injury even though it was done for the common good.
Law Libraries are stacked with books on Liability. The above is just a thumbnail sketch of generally held theory. Your mileage may vary.
Most Homeowner Coverage contain a General Liability clause. In most cases this is suitable. It is partially the responsibility of the Underwriters of the Policy to question and exam their risk before final acceptance of a Homeowner's Binder. If you keep your property in good condition and, for example, install and maintain your radio tower in generally accepted proper ways, coverage should not become a problem.
nofars.net is independently funded. Opinions expressed are those of article authors and do not necessarily represent official viewpoints.
Copyright 2022 by Billy Williams & article authors
Non-commercial use permitted with source credit
nofars.net
Editor: Billy Williams, N4UF
n4uf