So You Think You Are Prepared Financially?

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.

This is one of the most important things to remember when planning for the "Golden Years" Protect your assets. Also, start thinking of ways to supplement your retirement income.

Lately, I've been looking at sources of passive income in order to bolster (and hopefully eventually replace) my current income. It is a fond dream that at some point in the future, I could largely step back from doing active day-to-day work and instead use these sources as my primary income stream. In that eventuality, I could devote my time to volunteer causes and charities I'm passionate about (and maybe have time to sit back and read a book for pleasure on a lazy afternoon every once in a while).

The mere act of owning many investments can be considered a source of passive income. You merely hold the investment and regular dividends are paid out to you. Many people tend to focus on investments in terms of the increase in resale value, but many others quietly hold stocks and bonds that pay large dividends, lining their pockets with capital gains. Look for individual stocks and bonds or index funds that pay good dividends, then sit back and watch the money roll in.

The internet, magazines, and books on personal finance are chock full of calculators and projections to help you figure out "your number" - the usually astronomical sum of money that it is allegedly going to take for you to live off your portfolio of securities, not work, and still maintain some semblance of the same lifestyle you had while you were working.

The exercise seems reasonable - necessary even - but the problem is that the results are almost entirely arbitrary, especially if you are more than 10 years away from retirement.

Any shift in any one of the variables can drastically alter the final figure that pops up, telling you how much you need to have saved in order to retire at X age or how much each year you need to be putting away.

If you have a portfolio you might want to rebalance it every so often. Rebalancing is the act of sitting down once per year and adjusting your portfolio toward your target asset allocation. Let's say you hold two funds because you want a 50% US stock exposure and 50% International stock exposure. During the last year, it is unlikely the funds have gained and lost exactly the same. So you end the year and US stocks have been up more than International stocks. Your current portfolio weight is 53% US and 47% International.

Doesn't sound like a big deal, right? Just 3%. Well, over time that gap can get larger and larger until one day you find yourself with a 75/25 allocation-way out of whack.

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Business Owner's Policy - BOP

Business Owner's Policy (BOP) refers to the insurance package, which is a combination of both property insurance and liability insurance. The reasonable price tag makes this option more attractive for the small businesses instead of buying separate policies for property insurance and liability insurance. Business owner's policy is not suitable for the large businesses because they do not fulfill the eligibility criteria for this policy. Insurance companies feel that large business involve greater amount of risk so they do not consider them for BOP.

Eligibility Criteria:

On the contrary, small and medium businesses are suitable candidates for business owner's policy. Eligibility criteria for this policy are liability limits, premises size, nature of the business and activities performed offsite. These factors along with financial stability, location of business, security measures, and quality of construction and possibilities of fire determine the price of the BOP.

There are vast variety of businesses are eligible for business owner's policy. Some of the examples are bakeries, fast food restaurants, convenience stores and restaurants providing fast food, wholesale and retail traders and many other businesses related with service industries. Interestingly, restaurants providing full services may be denied the advantage of this policy. Other businesses that may find eligibility difficult are bars, auto repair mechanics and manufacturers.

Let us discuss the property insurance and liability insurance separately. If you have property insurance, you are entitled to get the reimbursement for the losses to you business property. You have two options to choose from for property insurance. First is the Standard Form. In this option you will get compensation only if the losses have occurred due to certain predefined perils. On the contrary, if you choose Special Form, then you policy will cover losses due to any reason. However, make sure that no peril is specifically excluded in the policy. Not only the risk of your business property is covered, but the risk of machines and plants permanently installed like air conditioners, business inventory, furniture, and also property stored at other sites.

If you have the liability insurance, then the company will reimburse the amount if any visitors get injured at you premises or any of your products cause an injury to the customer. You can get some additional advantages by paying extra premium coverage like losses due to dishonest employees, Robbery, Burglary and mechanical breakdown.

Protecting business assets against loss is as important as the insurance cover for home and the contents. However, you need to make sure that the amount covered is not inadequate. Estimate both replacement value and actual value of your property. BOP also covers the losses occurred due to the damage to property or an instance of injury because either your business did something or it didn't do something.

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Umbrellas, They're Not Just for Fruity Drinks

Do you have a Personal Umbrella Insurance Policy? Why not?

If you own a home or rental property, have money in the bank (whether in cash, retirement accounts or trust), or have a decent paying job (or will in the future), then you should consider getting the added peace of mind that an umbrella can afford - and speaking of afford, it is the least expensive insurance policy you'll carry.

Most people realize these days that you can package your auto insurance with your homeowners/renters insurance and get a discount for that called a multi-line or multi-policy discount. The discounts vary from company to company but usually they are in the range of 15%. When you add an umbrella policy to the mix you can get an additional discount in most cases that makes the net-additional-cost really low.

Example:

Most umbrellas start in the range of $175-200 per year for the first million dollars of coverage. Say your combined auto and home insurance premium is $2,000 for the year. With an additional discount of 6% (using Travelers Insurance in this example) for adding the umbrella you save $120 off the premium of the auto/home policies. So if the cost of the umbrella is $200 for the year, when adding the multi-policy discount the net effect on your total rate is only an additional $80 for the year. Not bad when you consider you just doubled your coverage (in some cases tripled) for only $80 per year. It's an insurance no-brainer.

Of course these policies are underwritten and here are some of the primary factors that determine your premium:

The age of your children (think there's an increased risk if you have a teenage driver in the household?) Owning rental properties, boats or planes Having a pool Having an issue with your driving record Being a "target risk" (celebrities or star athletes)

Even with some of these potential additional rating factors the umbrella policy will be inexpensive compared to the relative increase in your coverages.

A few examples of how an umbrella would be beneficial.

- I have a son who recently graduated from college. While he was there for the last 4 years he was using one of our cars. My son was in a fraternity. According to my son, his chosen fraternity wasn't "fratty" like the rest of them were and none of the debauchery occurred at their house like the others. I'm not saying that isn't true, but for my peace of mind, I knew that with an umbrella in place, I could relax somewhat knowing we had the extra coverage. What would have happened if he ever made the unwise decision to get behind the wheel to get some more beer with his frat brothers and he accidentally hit a pedestrian while trying to rush through a light? Two days in ICU alone can cost more than $100,000.

- Say you're driving to work on the freeway, obeying all traffic laws including not talking or texting while driving, and you do a lane change into a motorcyclist who snuck into your blind spot when you weren't looking.

- You're having a holiday party and one of your houseguests slips on some spilled ice and takes a hard tumble. At first they just have a small cut above their eyebrow which is easily stitched up, but then 2 weeks later their vision begins to blur and they might have something much more serious going on. What if that same person was medically uninsured? Who is going to pay?

- What if you're blogging about somebody and you get sued for "defamation" or "reputational injury" because they didn't like your unflattering remarks? These types of lawsuits are getting increasingly popular.

Will an umbrella keep you from being sued? No, there are never any guaranties that an overzealous person might still try to sue you for some astronomical sum, but having the extra coverage will give you the peace of mind that most accidents, even a catastrophic one will be taken care of with your umbrella.

A lot of clients over the years have asked "how much coverage is enough?" and I always reply "$1 more than you'll need." In other words, there is no way to know for sure how much you'll be sued for or how much coverage will be enough. You should work with your insurance agent to discuss your individual needs and purchase as much coverage as you can afford - and do it in a strategic way to maximize your savings through multi-policy discounts.

So this evening while you're enjoying that fruity drink with the umbrella consider what an umbrella of a different kind can do to protect your financial future.

(Note - Umbrella policies require minimum requirements of underlying coverage; usually 250k/500k on your auto insurance policy, and $300k on your home insurance and rentals. This can add a small amount of premium to your policy if you aren't already insured for that amount.)

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Five Reasons Why You May Need A Liability Umbrella Policy?

Have you ever wondered if you might need an umbrella policy? What is an umbrella policy designed to protect? What factors should I consider before buying one? The answers to these questions and more are waiting for you inside this article.

As a financial adviser, I often review client insurances for adequacy, cost effectiveness and proper type. One of the most commonly overlooked protections is a personal liability policy or an umbrella. Many people are not quite sure what it is or if they need one.

An Umbrella or personal liability policy is usually an all risk, all peril policy with coverage limits that start at $1,000,000. There are some very specific reasons that you might want to consider purchasing an umbrella and there are also some adjustments that you will want to make to your homeowners and auto insurance if you do.

Reasons To Purchase An Umbrella:

1. Children Driving: One of the simplest reasons to purchase a liability umbrella is if you have young children that are learning to drive or are under age 25. This age drivers are the highest risk drivers for a reason. They are inexperienced, easily distracted (friends, cell phones, texting, etc.) and statistically are involved in more accidents than any other age group. An umbrella policy will cover them all and protect you from losing everything if one of your children happens to cause a serious accident.

2. Assets To Protect: Most homeowner and auto policies have a maximum liability coverage of $500,000. But if you have assets in excess of this amount, you are exposed to a potentially higher liability problem if someone decides to sue you. Maybe you were involved in a car accident or someone slipped on your property, etc. If they sue you for more than the $500,000 and win, it will come out of your pocket or you may have to sell some assets. If your net worth is over this limit, consider purchasing an umbrella policy for the appropriate amount.

3. High Profile Income or Career: Another reason to consider is if you are in a high-profile profession where incomes are typically high. Someone may think that you are wealthier than you are just because of your title or profession and may be more inclined to sue for a larger amount.

4. Litigious Society: Today we live in an extremely litigious society. Lawyers are suing for larger and larger amounts and if you bear any liability, they are winning. Even if you are not liable, the legal defense fees are expensive. Some say that having a million dollar umbrella causes attorney's to sue for more. This may be true, but if you need the protection, it is better to buy the policy and hope you never use it, than it is to need it and not have it.

5. Cost Savings Adjustments: If you decide to purchase an umbrella, you can reduce your overall cost by doing the following. First reduce your homeowners and auto liability limits to their minimum allowed. This may be $100,000 instead of $500,000 and this will save you some premium dollars to offset the cost of the new policy. Next consider increasing your deductible amounts from $100 to $500 or $1,000. This will also reduce your premiums, but remember that if you make a claim, your new higher deductible will cost more.

Summary: For many families today, young drivers, increasing net worth and higher incomes make personal liability protection a necessity rather than an option. The additional cost is not outrageous, usually $300 to $800 annually and if you make some adjustments to other policies, you can possibly cut your extra out-of-pocket cost in half. Make sure that when you look at your overall financial situation and your risk management strategies, you carefully consider this one.

To discover additional financial and income tax strategies, check out my blog or download your FREE Wealth Expansion Kit by clicking here. The first step to creating wealth is knowing where you are and then charting a path that will enhance your financial strengths and correct your weaknesses.

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Understanding Personal Umbrella Policy

What is an umbrella policy? Do you need an umbrella policy? These are reasonable questions for everyone to ask. This article will go over the basics of an such a policy and what it can provide.

An umbrella policy covers above the limits of liability you have on all your personal policies. It gives extra coverage to others for liability, it does not give any extra coverage to you. It also provides this extra coverage to any and all of your personal policies. It is up to a limit you chose, usually starting around $1 million. This means your home, rental properties, cars, and toys are all able to draw extra coverage from your umbrella policy. One thing to consider is that your insurance company requires higher limits of liability on all your personal policies before they will offer you an umbrella. The limits required are usually around $250,000 of bodily injury protection per person and $500,000 per accident. Each insurance company is a little different, you'll need to check with them to see what is required.

We'll use an example to demonstrate how an umbrella can protect you. While driving your car you lose control and cause an accident with many people seriously injured. The total amount for all the medical bills comes to $750,000, but unfortunately you only have insurance to cover $500,000. At this point your umbrella policy will kick in to cover the additional $250,000.

So do you need an umbrella policy? That is a question you'll have to answer for yourself based on your situation in life. Typically, the average person does not carry such a policy. Those who do have umbrella's usually have "a lot to lose" or substantial assets.

This policy is extra protection for you so you don't lose all your assets and wealth to a lawsuit. Remember it provides extra coverage above the liability limits on your personal policies. If you decide to look into getting an umbrella policy, a local insurance agent is a great place to start.

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Top Tips For Buying Income Protection

One of the most important types of insurance that a person should have is income protection. Any person whose standard of living depends on them earning an income should protect this most important asset - their ability to produce an income.

When purchasing an income protection policy there are a number of key points that a purchaser should keep in mind: - Is the contract a cancellable or a non-cancellable contract? - Guaranteed or indemnity contract? - What is the maximum % of income that a person can insure? - What is a waiting period and how does it work? - What is the benefit period and how does it operate? - Indexation - Yes or No! - Are stepped premiums more suitable than level premiums? - Will I be covered if I am retrenched or become unemployed?

Non cancellable or cancellable contracts. One of the key features when purchasing an income protection policy is to ensure that the policy is a non cancellable contract -i.e. once accepted by the insurer the policy is automatically renewable irrespective of your claims history. With a cancellable policy however the insurer reserves the right to cancel the contract prior to renewal. This may occur in the event of an individual's claim history or the potential claims from a group or particular occupation that the particular insurer now deems to be an unacceptable risk.

Guaranteed or Indemnity contract. With a guaranteed contract the sum insured (monthly benefit) is underwritten up front based on supporting financial evidence - e.g. payslips, and other forms such as your tax return. Once accepted by the insurer the monthly benefit is guaranteed to be paid at claim time. With an indemnity contract however the benefit paid is based on the individuals earnings at claim time - this can be a problem if that person has suffered an illness but continued to work albeit in a reduced capacity hence lower earnings.

Maximum cover available. In Australia the maximum benefit 75% with some insurers allowing an additional 9% (for superannuation/retirement contributions).

Waiting Period is the length of time you need to be off work before you can claim any benefit. The shortest period is 14 days, with the standard being 30 days and the longest waiting period 2 years. Usually a person would link this to the level of accumulated sick leave that they have. As a general rule the shorter the waiting period the higher the premium.

Benefit period defines the maximum length that you will be paid for. Better quality polices have benefit periods up to age 60 or 65.

Indexation of Benefits. If you take a long term contract with a benefit period of more than 2 years you would be well advised to ensure that the benefits were indexed each year. This way the real purchasing power of your benefit is preserved.

Level or Stepped premiums. If you have a long term need which is generally over 15 years, you would be best advised to take out a level premium contract where the premium over the long term is averaged out and you pay a consistent premium level. If you only require cover for a short time frame of under 10 years you should take advantage of the initial premium savings found with stepped premiums.

Unemployment/ Retrenchment. Income protection policies are designed to cover loss of income through illness or accident only. Better quality contracts will however suspend cover if you are unemployed or retrenched and allow you to recommence (with limited underwriting).

Top Tips to keep the costs down include using level premiums, possibly splitting benefits to have some level of benefit with a 30 day wait and some with a 90 day wait. By paying annually you may find this is cheaper than paying monthly as many insurers have frequency loadings for monthly payments (up to 7%). If income premiums are tax deductible in your country ensure that you remember to claim your income protection premiums as a deduction - we have seen a number of individuals who have forgotten to do this.

Remember if it is hard to live with an income how hard would it be without one - act today and call your insurance adviser and protect your most valuable asset.

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The Benefits of Having an Umbrella Insurance Policy

Many people often think that their homeowners and auto insurance is enough to cover expenses as well as protect assets should an accident occur. What no one expects to happen, but very likely could, is an incident where they are sued for an extremely large amount of money that goes above their liability insurance limits. Most people do not carry umbrella insurance though, because they think that nothing catastrophic will ever happen to them. Unfortunately, when these situations do occur, they will realize that everything they worked for in their life is now at risk of being lost because of one unfortunate situation.

Let's say that you are involved in a car accident where the other driver is severely injured, and their luxury vehicle is damaged. They could sue, and if the award is, for example, $1,000,000, but your coverage has a limit of $500,000, then they could go after you for the $500,000 difference. Most people don't have $500,000 lying around, so your home, savings accounts, other assets, and even future salary could be at risk.

Umbrella insurance, which is a form of extended liability insurance, pays for any amount that goes above the liability limit for your home or auto insurance. In the previous example, if umbrella insurance was a factor, then that extra $500,000 would be covered, and your assets would be protected. Umbrella insurance pays up to the amount you select, which usually ranges anywhere from $1,000,000 to $5,000,000. This means that your car insurance liability will be used first, and then anything above that amount will come from the umbrella policy.

Umbrella insurance is not just for rich people; everyone can benefit from it since it is affordable. When an insurance claim is filed, most of the money that pays for liability expenses comes from your regular insurance plan, which is why regular insurance is more expensive. Umbrella insurance coverage is only used when the expenses go above and beyond that amount, and therefore makes it less costly.

The more assets you have, the more important it is to have this type of additional insurance. It is important to know the value of your home and other property to help you assess how much additional coverage will be necessary. Finding yourself in a stressful situation after an accident is tough in itself, but if you are protected financially, it will help you focus on what is important, and not on what you could possibly lose.

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The Scope Of Umbrella Liability Coverage

It is extremely frustrating and disappointing, when in the midst of crippling and devastating situations, one is bothered by worries of cots and legal settlements. Sure, this hassle can happen with anyone and the problems and worries are of an unexpected nature. True, there are so many options of insurance against such damages and unforeseen events. You can insure your assets and liabilities, like car, house and so on. Still, sometimes, your extensive insurance cover may fall short of settling and insuring all your expenses and arrangements. Therefore, it is necessary that you add an umbrella insurance policy to your arsenal of security. An umbrella insurance policy would be recommended for its versatile approach to the various liabilities and assets of the individual. However, before buying an umbrella insurance policy, one would be advised to know more about the scope of the umbrella liability coverage.

Like an umbrella, the umbrella insurance in your possession would be like a constant safeguard against the unexpected adversities and calamities. Sometimes, your insurances would not be sufficed to provide for all the expenses. Your vehicle insurance may pay for all the repairs. However, there could be gaps in the vehicle insurance cover. All the expenses and legal arrangements may not be provided for. In such an event, your umbrella insurance policy would function efficiently. The umbrella liability coverage would reach right up to covering all the legal settlement fees and the repair costs effectively.

Also, you may decide to take a house insurance. While it may secure the house against unseen damages and structural faults, your house insurance would not be sufficient to give an all round security against crimes like libel and so on. There is no reason to actually worry, if you have got an umbrella insurance policy. The umbrella liability coverage also gives you the security of costs of settlement of such crimes and offenses.

More specifically, the Umbrella Insurance, in your possession, would be of great advantage and benefit for settling the claims on liabilities. For instance, if some party has borrowed money from you and has not returned, then it could spell a loss for your business. In such a case, going to court is inevitable. Here too, the umbrella liability coverage would be of assistance. The umbrella policy would allow your legal claims to get solved. It would provide for the best legal assistance and the costs involved.

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Can a Few Hundred Dollars Save Your Financial Future? Lawsuits Equal Financial Ruin Without This

You work you entire life trying to build up a nest egg. You know, just a bit of money to allow you to live comfortably into your senior years. And then one day driving home you experience what millions of people have experienced. A car accident. The problem is you are at fault. Found negligent. And if somebody loses their life or has life altering injuries you can bet you will be sued. And you will be sued for all that you have. You have worked so hard only to have an attorney come and swipe it all away in one long and drawn out painful lawsuit.

Usually people will say that they have full coverage with their automobile. Unfortunately most often it is fool coverage. Please note how one is spelled FULL and the other is spelled FOOL. This is not a knock on you because you make your decision based on what is provided to you or based on what you have discovered by your own research. And the the brutal truth is the world is time starved so who really has much time to look up information regarding what types of insurance they should have? So all to many times people end up with status quo coverage and the only time they find out it is not proper is when their is a claim, but it is too late to do anything after the fact.

So how could this scene have come out differently? The answer is simple. A liability umbrella policy.

Simply put, a liability umbrella policy covers you for a large number of different things all relating to liability. So when you hear liability you should think lawsuit. So a liability umbrella is like an umbrella over you to protect you from the lawsuits that rain down on you to take your nest egg.

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The Truth Behind Professional Indemnity Insurance Quotes

Professional indemnity insurance is a type of business insurance that protects professionals when they are threatened with legal action as a result of negligence, act of omission or error. There are various types of indemnity insurance plans for professionals and buyers who are interested in purchasing these plans can opt for a quote online or via the phone. However; before asking for a quote, buyers should be aware of a few things such as are professional indemnity insurance quotes accurate and is it safe to ask for quotes online. Listed below are answers to these questions and many more.

How Can I get a Professional Indemnity Estimate? There are two ways in which you can easily get an estimate without visiting the insurer in person. The first way is to visit an insurance agent or insurance comparison website and ask for an instant online quote. The second way is to call an insurance agent or insurance comparison website's hotline number and ask for an instant quote over the phone.

Why Should I Opt for an Online Quote? Online quotes are instant which means that you do not have to wait for many hours in suspense to know how much you will have to pay for the policy of your choice. In addition, multiple quotes can be acquired online by visiting an insurance agent's website. It should be noted that buyers can acquire online quotes directly from the insurer's website as well, however insurers usually offer single quotes and do not offer extended comparison features.

Are Online Quotes Accurate? Yes, online quotes are accurate and before a quote is given the buyer is asked to enter certain details about his profession and requirements so that the system can provide an accurate quote. However; it should be noted that special circumstances are not taken into account while online quotes are provided. Discounts if any will be applied when the buyer is purchasing the policy from the insurer or a registered insurance agent's website.

Is it Safe to Ask for Professional Indemnity Insurance Quotes Online? Yes, it is safe to ask for online professional indemnity cover quotes and buyers do not have to be worried about their details being shared with third parties. Reputed insurance agents and good insurers make sure that the details entered are not shared and that all information entered into the system remains confidential. Purchasing a policy online is safe since insurance websites use secure payment gateways and encrypted web pages to process payments.

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Umbrella Companies

In the UK, an umbrella company acts as employer to independent contractors who work under temporary contract, usually through a specialist employment agency.

Recruitment agencies will only issue contracts to a limited company. Since the introduction of the Managed Service Company legislation in the 2007 budget, the only way an independent contractor can comply with this requirement is to set up his or her own personal limited company or use an umbrella company.

An umbrella company issues invoices to the recruitment agency (or client) and, when payment of the invoice is made, will typically pay the contractor through PAYE.

Umbrella companies have become more prevalent since the British government introduced so-called "IR35" legislation that makes it less beneficial to start your own company and increasingly attractive to join an umbrella company.

IR35 is a term used to denote United Kingdom tax legislation designed to tax "disguised employment" at a rate similar to employment. In this context, "disguised employees" means workers who receive payments from a client via an intermediary and whose relationship with their client is such that had they been paid directly they would be employees of the client. Before IR35 was introduced workers who owned their own companies were allowed to receive payments from clients direct to the company and to use the company revenue as would any small company.

With doing some research into umbrella companies i have found out that most of them offer the same services.

* Turn timesheets from contractors into invoices and submit to agencies * Process funds from agencies and send to your bank account * Process your expenses ensuring you maximise your income and tax efficiency.

Whilst many of the umbrella companies advertise similar offerings, much of the detail should be checked by the user.

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Features of Umbrella Insurance Quote For Homeowners

If only you can foresee what will happen in the future then there would be no need to ready yourself and your property from any unpredictable events. But that is impossible. Although you can direct what your future will be with the choices that you make, there are just some external factors that are beyond your own control. These factors can even let you experience financial disaster especially if you do not plan and prepare yourself for what can happen that will be a threat to your personal property.

The basic homeowner's insurance is what you usually have. It protects you from any damages in the structure of your home. Sometimes the claim that you will get is not enough however it can already be a great help. You would definitely avail it than to have nothing at all. Since your home and your property is of great value, you would do anything to secure it. However, certain events can go beyond your control that even your stun gun tazers could not stop it.

To complete it all, you must get an umbrella insurance quote that will reinforce your basic insurance policies. Fortunately, this kind of insurance is affordable and the claim is quite hefty. They can go to a million and more by just paying a smaller amount of premium. You can get it from the same company where you purchase your basic insurance so that you will be able to get a good deal. Usually the premium would depend on certain things like driving records of family members and of course your ability to pay.

When you decide to get from an umbrella insurance company, you must think of your property and of course your place of residence. If you think that you are prone to natural calamities, lawsuits from well-off neighbors, or pets which you think would cause harm to other people then you better consider paying for a higher premium. This means that if these events happen beyond your control, you will have an insurance that will cover for your financial struggle. It would be easier for you to handle the situation that you never expected to happen.

There are specific exceptions though when it comes to this type of insurance that is why you have think about it very well before you purchase just like what you do when you buy valuable things for yourself like a c2 tazer. Some insurance companies might not include in your policy the injury of some of your workers in the house or any business transaction liabilities. You need to inquire first the coverage of the insurance that you are trying to avail so that you will learn about the limits and the benefits that you will get from it.

Although there are some exceptions, you will be able to experience its features like giving you help when you really need money the most especially when it comes to lawsuits. Going into court requires a lot of money and they will be able to aid you with that especially when covered by your premium. So think very well whether you will avail one or not. Weigh its benefits to you so that you will be able to gain your money's worth.

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Do I Need Excess Liability Coverage? Don't End Up Like Mary and John!

John and Mary live in a nice five bedroom home located in California. They've lived in their three thousand square foot home for twenty five years and are retired. Their home is paid for and worth about $900,000. They live off their retirement and have hardly no bills to pay. John and Mary have always had a homeowners policy to cover their home in case of fire, theft or other potential losses involving their home. Mary is age 75 and John is age 72. They hope to someday leave their home to their adult children.

On a nice spring day, Mary went to run some errands in her vehicle around her neighborhood. She pulled into the parking lot of her local grocery store. For some reason, after Mary parked her car , her foot slipped off the brake and hit the accelerator instead. Mary's car went through the wall of the grocery store. Her vehicle continued through the wall of the store and she collided into two pedestrians who were standing in line with their grocery carts.

Both of the pedestrians were rushed to the hospital due to the severity of the injuries they sustained from Mary's car striking them. Mary was upset about the accident and did not know what she should do. She called her insurance agent the same day of the accident and her agent took her information to start processing her claim.

Months later after the accident, Mary and John found out that the damages filed by the two pedestrians injured from the accident, exceeded the auto insurance liability limits that they carried with their insurance company. John and Mary found out from their adjuster that they would be personally liable for any money damages which exceeded the liability limits that they carried.

The adjuster also told them that the pedestrians attorney did an asset check to see if Mary and John owned property. The attorney found out that they owned a home and would be expecting them to contribute additional monies towards the settlement of the pedestrians claims in addition to the auto insurance liability limits that they carried.

Mary and John were devastated and did not realize that their home the most valuable asset they owned was at stake! They worked all their lives for their home and could not believe that it may be at risk due to the accident. John and Mary did not know they may have avoided contributing monies towards the pedestrians injury claims if they had excess liability coverage or an umbrella policy!

What is excess liability coverage or an umbrella policy? This policy would be liability coverage which would exceed your homeowners or vehicle policy for damages you may be liable for.

The cost of excess liability coverage or an umbrella policy is very minimal for the amount of additional coverage you would receive. You can expect to pay somewhere between $150-$400 annually for this coverage. Consult your insurance company for details. Remember, excess coverage is important for you to consider if your assets are substantial, especially being a homeowner. This extra protection may give you better peace of mind in the long run and will be well worth it!

Why You Should Consider Umbrella Insurance   A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class   

The Need For Umbrella Insurance

Haven't you heard about the commonplace story where someone got sued for a large amount but the insurance company was able to pay only 60 percent of the amount or so? Let's say that you are sued by another person and the court awards him a far greater compensation than what you can afford. In other words, your insurance company is able to cough up an amount that is less than what the court directed you to give to the other guy. Now you, the policy holder, has to pay additional amount from his own pocket.

It takes good foresight for the policy holder to take umbrella insurance. If you consult someone who is an expert at insurance or a chartered accountant, you may know that the current policy that you hold is not enough to cover you comprehensively. You may realize that you need an all encompassing umbrella policy that covers all your insurance from their max limit to several times, even running into millions of dollars, so that you are totally, I repeat, totally secured.

The good thing about umbrella insurance is that they start when other insurance policies max out and they are not that costly to purchase. If you are running a business, it may just be imperative to take umbrella insurance. For people who have high net-worth, umbrella insurance can be quite important. You should always run through your existing insurances and find out up to how much you'd need umbrella insurance. Take stock of your net worth, your assets and the plausible areas that can invite public outcry or a possible court case, if you are a company, and make sure you are insured in those counts. Such insurance can give you peace of mind, least of all.

Umbrella insurance does not just cover you from financial damages but it can save you from the biggest financial losses that can leave a void in your life. You can find good umbrella insurance policies online and most of them come with affordable policies in that category. You should find some real good offers at attractive rates online. There is a strong demand for these types of insurance considering the fact that any wrong move can put us in financial jeopardy. When you look for umbrella insurance online, we are sure to find a lot of competing companies giving their quotes at low rates to attract your attention and take their policy.

If you already have insurance who has given you polices to cover your life, your health and you car, you may ask him for an umbrella policy. Usually the amount that you have to pay as premium towards this policy is less than $300 annually. If you can collect all your existing policies together and ask for an umbrella policy, it can work towards a better deal for you.

Why You Should Consider Umbrella Insurance   A Great Reason to Get a Personal Umbrella Policy - Your Car Is a Lethal Weapon!   Income Protection Insurance: A Boon for the Salaried Class