Insurance 101 - Firearm Collections and Coverage Considerations

Having a gun in your home can have repercussions for your homeowners insurance, especially the liability portion of your policy, so understanding the various impacts is important. When it comes to home insurance, most home insurance companies have no issue with gun ownership. In most cases, insurers don't even ask about firearms during the application process. However, there can be exceptions:

1.     Insurers aren’t overly interested in your gun collection.

2.     Insurance companies view guns as ‘personal property’, subject to the all other perils deductible.

Insuring your weapon is as easy as creating an inventory; For Example:

SERIAL # / YEAR / MAKE / MODEL / VALUE

123456789 / 2015 / GLOCK / 19 GEN 5 / $675.00

123456789 / 2018 / RUGER / SR1911 KOENIG / $2,000.00

123456789 / 2020 / REMINGTON / VERSA MAX / $1,050.00

123456789 / 2019 / SIG SAUER / MPX NOCTIS S/A / $1,600.00

Home insurance policies typically cover firearms as property in the same way they would cover any other property in your home. If a firearm were damaged in a fire or stolen, the damage or loss of such property would generally be covered under a standard homeowners policy, subject to any deductible and policy sublimits. Since guns are considered property, they ordinarily have no impact on your rates or premiums. You don't even need to tell your insurer. 

That may change in some states soon. A bill in New York could require gun owners to have at least $1 million in liability insurance. Bills in Minnesota would also require gun owners to purchase higher limits of liability insurance. Other states like Massachusetts are studying the issue. Similar legislation on the federal level has stalled in Congress. Unlike many other forms of insurance that offer discounts in almost every category, discounts on firearms policies don't exist. For all intents and purposes, there are no discounts or surcharges for having a firearm.

You might run into insurance sublimits; -sublimits can be an issue if you have many guns or are a collector. Sublimits are dollar-amount limitations in your policy that apply to specific losses. Most insurers consider guns to be valuable property and include them with items, such as artwork, jewelry, and furs. All of these possessions are subject to sublimits. This means the coverage could be limited to $2,500 for your entire gun collection. This depends upon your specific home and/or valuable collections policy, your specific insurance company, and the state your policy is written. If your gun collection is valued above $2,500, you may need to purchase a rider. A rider is an insurance provision that adds more coverage, which provides more protection but increases insurance rates.

Accidents are covered

While homeowners policies usually cover damage or theft related to firearms, liability issues can be a mixed bag – especially if you intentionally pull the trigger. Accidental shootings are usually covered. However, liability coverage doesn't include those in your household. If you shoot yourself or a member of your household, liability coverage wouldn't apply. Medical bills would fall to the health insurance policy of the person injured.

For example: If the gun is accidentally discharged, the homeowners insurance policy would typically cover the costs of any resulting property damage, injury or death to a third party, such as a neighbor or visitor to your house. Homeowners insurance will also likely cover accidents outside the home, such as when hunting or at a shooting range.

If you are hunting and fire your gun in a manner where you are trying to hit a deer but miss, that is not an intentional act; the same would apply if you were at a range. You should be covered, and liability will be reviewed on a case by case basis on every reported claim by your insurance carrier.

Commercial activities, however, are another matter

If you were being paid to guide a hunt or teach someone to hunt or shoot at a range then it is a business use exposure, and there may be no coverage. Without a homeowners policy for protection, you would need a business policy that would to cover your needs.

Exceptions to coverage

A genuine accident is usually covered, but there are exceptions. You may be on the hook for damages if alcohol or drugs are involved when the accident occurs, depending on local laws.

While coverage may apply in some circumstances, the outcome could vary depending on the specific circumstances of the claim and applicable state and local laws. In many states, leaving a loaded weapon in the open where a child can access it is a crime. Plus, the gun owner would be responsible for the cost of damages should the child intentionally hurt someone with it. Also, if you are in the middle of committing a crime when an accidental shooting occurs, all hope of insurance coverage is gone, since intentional and criminal acts are excluded from coverage.

Plan on purchasing additional liability coverage 

If an accidental shooting occurs with one of your weapons, you could be on the losing end of a wrongful death lawsuit. Attorney fees, damages and medical bills could quickly exceed a low-limit liability policy included in homeowners insurance. Settlements in excess of $1 million aren't uncommon.

Liability limits start at $100,000 on a standard homeowners policy, but most experts recommend that policyholders carry at least $300,000 to $500,000 -or higher. Gun owners should consider carrying even more, and look into an excess liability or umbrella policy.

Umbrella policies are usually sold in $1 million dollar increments and are inexpensive based upon the policy limit coverage that may come into play when primary liability limits are exhausted.

Intentional shootings aren't covered by homeowners insurance

Homeowner policies have "intentional injury exclusions,” which means if you intentionally cause damage or harm, you are on your own in any resulting liability claims. “All policies deny coverage for intentional injuries, explains Thomas Simeone, with Simeone & Miller LLP. "So, if you shoot at and strike an intruder, there will likely be no coverage because you intended to injure them. It does not matter whether the shooting was justified or not. However, if you accidentally shoot someone, there will be coverage because you did not intend to injure that person," continues Simeone.

This means that if you intentionally shoot a burglar or anyone else, and they sue you, the cost of your defense and any resulting award to that person would fall to you, which can quickly become very expensive.

Added protection for self-defense

A standalone self-defense policy can step into the breach for intentional injuries. The primary benefit of a self-defense policy is that it provides coverage for acts of self-defense that are generally not covered by homeowners/renters insurance policies. It fills the void that is left in homeowners or renters policies, which usually classify an act of self-defense as an intentional act.

If considering a self-defense policy

Protects you for using your legally owned firearm, with or without a concealed carry permit.

• Reimburses you for criminal defense costs related to self-defense, if acquitted
• Covers your defense and damages in a civil suit
• Includes Bodily Injury or Property Damage coverage

The best way to avoid a liability claim is to make sure your weapons are properly stored and handled, but additional coverage could be a financial lifesaver if the unthinkable were to happen.

USCCA – 877-488-8353

Membership – Your USCCA Membership comes with the trusted legal protection you need to safeguard your family’s future and everything you’ve worked for. Plus, your Membership protects your family members at your residence if they are ever forced to defend themselves. As their protector, you can help them train and prepare.

U.S. Lawshield – 877-448-6839

Membership – Gunowner identity theft coverage, multi-state protection, minor children, bail bond and expert witness, hunter and angler regulatory assistance. U.S. LawShield Independent Program Attorneys will represent you in any legal proceeding – criminal or civil – should you ever need to use a firearm or other legal weapon to protect yourself, your life, or your property. Legal defense will be provided for all police investigations, pretrial proceedings, and both criminal and civil trials.

 Protecting your family and your property is a 2nd Amendment Right that all Americans share. Knowing how to adequately protect that right through cautious handling, training and proper insurance is something to consider and be familiar with to protect that right.  

-We can help.

Jason M. Pond, CAPI, CPRIA

Shareholder / Personal Risk Management

972-715-8703 – W /  972-342-8645 – C / [email protected]