Travelers Explains Gun Policy; Bloggers Complained

[Tim Nunan]

http://blogs.courant.com/connecticut_in ... olicy.html

Gun-rights bloggers recently targeted The Travelers Cos. for dropping a homeowner's insurance policy in 2008 because the person owned an "assault rifle," raising questions about whether some guns are too risky to insure.

The source of recent blogging -- "Ry's Blog" -- shows a letter Travelers sent to a homeowner on July 22, 2008, which says, "Our reason for non-renewing your policy is due to the substantial change in your risk since the policy was first issued as described below: There are assault rifles at the insured location."

The policyholder's name, address, agent and policy number have been covered up by black markings, making it almost impossible to research the circumstances. (See the Feb. 14 blog post here, as well as here and here.)

The New York-based property-casualty insurer wouldn't comment on the policyholder mentioned in the blog because it keeps private its dealings with customers. In general, owning guns doesn't prevent a person from buying homeowner's insurance. Travelers insures the homes of people who own pistols and rifles, but the company would not say if owning certain types of guns is a risk the company considers uninsurable.

"Every individual is evaluated on the particular risks," said Matt Bordonaro, spokesman for Travelers, which employs about 7,000 in Connecticut.

Gun owners often cite Constitutional rights in the second amendment, which allows them to keep and bear arms. Insurers also have the right to price policies and deny coverage, usually because the risk isn't worth the premium. Other risks that would keep an insurer from writing coverage include trampolines, dangerous dogs or a pool without a fence.

"A standard homeowner's policy typically covers theft of guns up to certain limits, and there are additional endorsements that can be added for collectors looking to insure pieces over a certain value," Bordonaro said. "So, it's best that those looking for coverage beyond a standard policy check with their agent or insurance provider to understand how to best cover their collection."

If you have a collection of rifles and pistols stolen in a theft, most property-casualty insurers will pay up to a maximum limit of $2,500 to replace the guns under homeowner's insurance, said Mike Barry of the Insurance Information Institute. This is separate from how much an insurer would pay to cover the death or injury of a person as a result of a shooting.

"Homeowner's insurance is generally available to homeowners who legally keep guns on their properties, although it is fair to say the on-premises presence of an assault weapon likely isn't built into the standard homeowner's policy issued by most insurers," Barry said.

It's not clear which type of guns would be considered "assault weapons." Barry said a person who has an AR-15, for example, should tell their insurer "so all parties are aware of, and can discuss, the potential risks." People who have additional liability insurance should talk about the guns with that insurer, too, he said.

Insurers may be willing to offer coverage at standard rates if the gun owner is willing to take precautions specified by the insurer, Barry said. Precautions might include trigger locks and a locked gun case.