Tag Archives: umbrella coverage

umbrella2A column in Daily Finance (www.dailyfinance.com) posed this scenario: “While its easy to assume that only a rich person could need that much insurance coverage, you’d be surprised at how important an umbrella policy can be for an average member of the middle class. For example, if you have a car insurance policy with liability coverage, you may think you have enough protection in case of an accident. But a lawsuit… could quickly exceed the $100,000 or $300,000 insurance payout.”

Are you prepared for that? Because everyone knows (or should know) that any damages beyond your policy limits are your responsibility. Maybe you thought your auto liability or homeowners liability was enough, but do you want to find out they weren’t after the fact? Your livelihood and that of your family is at stake.

In the same Daily Finance column, the author points out that “although 85 percent of umbrella insurance claims are related to car accidents, the policies offer protection against accidents that occur at your home, too — for example, in case someone falls down your stairs and sues you, or your balcony collapses during a party. Many people opt for an umbrella policy because they have a pool or a trampoline on their property and fear the consequences of a child getting injured.”

Be sure you have all the coverage you need. You have been vigilant in your insurance protection so far, so go the extra step. Talk to your insurance professional and be sure you are covered for all eventualities. Better now than in the future… when it’s too late.

present motorcycleAs you sit in the middle of your new surround sound system enjoying the game, or cruise around on your new Harley feeling the envious stares of every guy you pass, remember that you need to be adequately insurance. Those pesky details are often not high on the priority list of someone who wishes it was warm enough to take the new jet-ski out on the lake. But if you want to avoid an unfortunate incident later, you should think about insurance now.

Many standard homeowners or renters policies will cover small electronics like iPads and smart phones. But when you start moving up the scale to surround sound systems and cutting edge computer systems, the line get s a little murky. Policies have limits and your $15,000 claim may only pay $5,000 depending on your coverage. For things like artwork, collectables, and jewelry may not be covered at all. A special endorsement or umbrella policy may be needed, or possible a new individual policy entirely.

Gifts like a new car obviously need to be covered by vehicle insurance, either added to your policy or with individual coverage. A new motorcycle needs motorcycle insurance. Jet-skis, boats and other watercraft need an appropriate policy, too.

An annual review of all your insurance policies is an excellent idea, and there is no time like the present. Jot down all relevant serial numbers and take video/photos of everything you feel is of value. Also make sure to get appraisals of any collections you may have, as well as any antiques.

Don’t wait until it is too late to make sure you have the coverage you need with all your new toys, as well as your old ones. Talk to your insurance professional and make sure there won’t be any surprises should you need to file a claim later.