Articles for Homeowners

Let an Umbrella Policy Be Your Safety Net

Its a momentous occassion in life when you reach the time when you can offically call yourself a homeowner. Owning a home is a very exciting time, but it also comes with great responsability. In addition to responsiablility comes a thing called LIABILITY!

Even when you reach that stage in life and can afford a home and the expenses that come along with it, you are not always wealthy enough to be vulnerable to lawsuits. Accidents happen everyday and these accidents can occur in your home or during your day-to-day activities. This could potentially cost you an arm and an leg if you are liable and not properly covered.  For example, if a tree in front of your house falls during a storm and crashes onto your neighbor's home or car you can be liable to the damages. Especially if that tree were to also knock down the electrical wires and start a fire which potentially could burn down the neighbor's house. Damages like this could cost hundreds of thousands of dollars, even millions depending on the real estate market in that particular area.

Even if you are named on a board of members for a profit or non -profit organization you could be liable in certain instances. If an organization is sued for personal injuries that occurred during their one of their events or at a board meeting, you as a board member can also be in the position to get sued as you the board member would be liable.

Most people don't even think to look into an umbrella policy as they feel they are adequately covered through car/ homeowners insurance. However, what you may not know is many of these policies top out around $300K. Extenuating circumstances could cause you liabiities well into the millions.

People need to supplement their coverage with an umbrella policy. Umbrella policies will kick in once liability insurance from your homeowners and auto policy stops. The umbrella policy will pay claims above the liability limits you currently have, up to the limit you have selected. Most people purchase a million, two million or three million dollar umbrella policies.

A million dollar umbrella policy can cost as little as $200 a year, since the umbrella policy provider is not assuming most of the risk. Being this is an inexpensive policy it a very smart decision to purchase this type of insurance.

Most insurance providers offer umbrella policies to clients whom already insure their homes and cars. These insurance carriers usually require your primary liability limits be set at a certain amount. Umbrella policies are typically sold with deductibles ranging between $250 and $1,000. If you are liable for death, property damage, or catastraphic injuries your umbrella policies kick out once you max out your traditional liability policy

Not only will your umbrella policy pay damages, but it will also cover expenses of lawyers fees and cost of defense if a lawsuit were to arise. With the cost of litigation on the rise these expenses can become extremely high even in a case that is less servere.