Wednesday, September 29, 2010
Do you have an umbrella?
Ah, the joys of home. So many comforts — and so many risks. The dog, the teenage driver, the pool, the house parties, the monster tree that overhangs your neighbor's yard — any of these could be the stuff from which lawsuits arise. And many homeowners and auto insurance policies may not offer enough coverage for major personal-liability claims. What would you do if you accidentally caused damage or injuries which went beyond the coverage limits of your homeowners or auto insurance? What would you do if you found yourself on the wrong end of a multi-million dollar lawsuit? Naturally, most people don't expect the unthinkable to happen — but sometimes it does.
Caveat: Don’t assume that your homeowners insurance provides adequate coverage in the event you’re sued for your negligence which results in injury or damages.
The Personal Liability policy
Umbrella policies, as they are also known, supplement the liability coverage you already have which is provided by your underlying homeowners and auto insurance, and provide an extra layer of coverage up to the limits you purchase. Of equal importance, an Umbrella policy extends liability coverage to encompass certain coverage gaps left by exclusions on the basic underlying policies.
You may want to consider purchasing a Personal Umbrella policy if any of the following apply:
Your total assets exceed your underlying liability limits.
You have assets over $1 million, including property and vehicles.
You have the potential to have assets over $1 million in the future.
You earn or have the potential to earn significant income.
You are financially responsible for a young or inexperienced driver.
You frequently carpool young children.
You own or operate an aircraft or boat.
You own a swimming pool, trampoline or dog.
You own waterfront property, a farm or ranch.
You employ one or more people in your home.
You want to make sure your current assets and future earnings are protected.
Life is uncertain: Plan for it
You probably work very hard for the things you own — don’t forget to protect them. You never know when the unexpected can ruin not just your day but also your well-laid financial plans for the future. Make sure you’re prepared — don’t forget your umbrella. Call me for more information.