The majority of your coverage concerns are found in our consumer article titled "Which Homeowners Policy is Right for Me?" As a lucky owner of a timeshare arrangement, you may have a special coverage need. The insurance world has a tendency to focus on providing coverage for the most common needs. Naturally, unusual situations result in coverage gaps and owning a timeshare is such a gap. While insurance is readily available to handle individually owned seasonal or secondary residences, buildings, vacant land, or personal property; the common timeshare arrangement may not be handled by basic and/or optional homeowner coverage forms.

Why Do Timeshare Arrangements Cause Coverage Problems?

Coverage gaps may exist because typical timeshare arrangements involve:

• real property with multiple owners
• living units that are often furnished with personal property that may be jointly or severally owned
• living units which are occupied by several individuals or families who have control of all of the property during their time of occupancy
• special agreements or stipulations that govern the property.

All of the above circumstances make it difficult to find coverage since standard policy forms are not constructed or priced to handle unusual or complex situations.

All the Right (Coverage) Moves

Taking care of your coverage needs calls upon the quick involvement of an insurance professional. Here are some steps you should consider when you discuss your situation:

1. Bring a copy of all the residence related paperwork. The paperwork should include a valid contract that describes your ownership interest and obligations in the timeshare property.

2. Be open to the possibility that you may need to buy more than one policy to cover the jointly owned property, any personal property that's located at the residence, the joint liability exposure and any special assessments or liability assumptions agreed to under any contract.

3. Discuss the coordination needed to make sure that the coverage needs of all of the owners fit together so that no gaps exist when initially purchasing coverage. Further coordination will be necessary to make sure that, as circumstances change, the coverage is reviewed to make sure that it remains adequate.

4. Be flexible. Proper coverage may have to be provided by a specially modified personal insurance contract or even some form of commercial coverage may be necessary.

5. Take the time to ask that any coverage mentioned during a meeting with a qualified insurance professional be fully explained to you.

It's best not to generalize because coverage needs can vary substantially from one arrangement to the next. Your best bet is to discuss your current coverage and your coverage needs with a qualified agent in order to make sure that you're protected adequately and affordably.

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