The basic coverage for personal liability in standard
homeowners, rental, and auto insurance policies often will not
cover high losses of court awarded damages. Additional personal
liability insurance will add a higher level of protection. This
additional policy forms an umbrella because it covers protection
above and beyond standard homeowners and auto policies.
Additional costs will vary with insurance companies, but usually
average from $200 to $300 a year for additional protection of 1
million dollars. This coverage may insure automobiles, boats,
homeowners, and renters insurance. Most insurance companies
require basic insurance of $100,000.
The insured should ask the following questions:
1. How much do I have to lose? 2. What is the monetary total of
my assets? 3. How much would legal fees cost me? 4. Are umbrella
personal liability policies which cover one million dollars or
more worth the extra premiums? Most insurance advisors recommend
that they are.
Rate yourself and your family:
Are you careless? Do you own a pool or an active recreation
room? Do other people work in your home? Have accidents occurred
in your home? Add to this list of possible personal hazards.
If you answered yes to any question, you need additional
protection of the umbrella liability insurance policy. Don't
forget to buy additional auto insurance.
Study liability insurance on the internet or consult your
insurance needs with a reliable agent. The internet has many
clear, illustrated paragraphs of available types of policies.
Individuals may study thousands of agents and companies, have
questions answered, and purchase all types of insurance policies
online from the leading insurance companies of the world.
Do not risk future financial disaster because you failed to act
by saying, "It can't happen to me. I don't need extra coverage."
The coffee table in your living room that you gingerly step
around could cause a house guest to topple over. Another friend
on an overnight stay slips on the staircase as she is on the way
to the kitchen to get a cup of warm milk. These people might not
be injured, but it is possible.
If anyone has an accident in your home or on your grounds, they
could be severely injured. That is when you are in dire need of
a personal umbrella policy. The insured needs to evaluate all
possible situations that could lead to a major loss.
Remember personal liability insurance does not cover any
business whether it is operated in the home or at an independent
location. They are separate entities. The insured needs business
insurance to cover any losses. Umbrella policies are available
to cover the insured's business.
If you still have doubts, get assistance from a certified public
accountant who does not make a commission on insurance sales,
but charges for the office visit and the advice. Also, and very
important, take the time to read every word of your policy, and
if you don't understand it: ASK QUESTIONS.
For more information about liability insurance of all types go
to:
http://www.liab
ility-insurance-central.com
About the author:
Grant Davis, is a freelance writer and has worked in a variety
of fields, including teaching. Feel free to use the above
article, as long as it is reprinted in its entirety.
