Insurance Info

What happens when you are sued for more than your basic homeowners or auto insurance policy covers and are found liable? Well, for most people, it would mean liquidating unprotected assets in order to satisfy the judgment. This may mean garnished wages, selling property, and possibly losing some of your investments. This is certainly a situation that could ruin your life, but there are ways to protect yourself.

A personal umbrella policy is additional coverage that goes above and beyond what your homeowners and auto insurance policies cover. Think of it as a protective umbrella that will pick up the damages once you have exhausted your coverage of those policies.

Your home is likely your most valuable asset-make sure it is properly protected. While insurance agents will help determine the kind of coverage you can buy, it is ultimately your responsibility to know what the policy covers. And remember, insurance agents are salesmen and typically work on commission. This isn’t a bad thing, but be aware of what type of coverage you actually need so that you can spot it when you’re being sold something you don’t truly need. Continue reading ‘So You Think You Are Prepared Financially?’ »

What is an umbrella used for, really? It keeps you dry, protects your hairstyle from the rain and makes a great conversation piece when you’re getting together with your friends for coffee. An umbrella policy isn’t quite as versatile as its nylon counterpart (hairspray may be a complete waste of time if it’s raining) but it does serve a very vital purpose-protecting your finances from unforeseeable disasters that can bleed your bank account dry.

Picture this:

Your neighbor (who you never really liked anyway) slips on your front steps and seriously injures themselves. What they were doing on your front steps in the middle of the night in the middle of a blizzard without their walker is a complete mystery, and doesn’t really matter. What matters is the fact that they are now suing you for millions of dollars for medical expenses and pain and suffering. Your homeowners insurance tops out at $400,000. What do you do now? Continue reading ‘The 411 on Your Umbrella Policy’ »

Have you ever been caught out in the rain without an umbrella? If so, I’ll bet that you felt really stupid, right? In addition, you got soaking wet and most likely caught a nasty head cold as well. Well, in these uncertain times, it’s just as dumb to venture forth without the proper financial “umbrella” to protect your assets from those unexpected financial storms. I’m talking about personal liability insurance. More specifically I’m talking about an umbrella policy, which is a special kind of personal liability insurance that provides you with extra insurance protection. This type of insurance is referred to as an “umbrella” because it brings together various different components that are normally covered by separate professional liability policies.

When it comes to personal liability insurance, an umbrella policy is simply one of the best investments you can make. Not only does this type of policy provide addition coverage above and beyond what is allowed in a traditional policy (for example, if you cause a car accident and are sued, your maximum liability may not cover the amount of the settlement from a lawsuit), but it will often cover things that are not normally addressed in a traditional policy such as a copyright infringement case or a defamation suit. Another benefit of an umbrella policy is the price. Monthly premiums on a seven-figure policy are much cheaper than it would be for a single insurance policy. Depending on the state in which you live, it’s not unheard of to carry a four or five million dollar policy for as little as $300 a month. Continue reading ‘You Need an Umbrella Policy to Become a Millionaire’ »