by Guest » Fri Apr 24, 2009 05:24 am
I’m a first time home buyer. I’m curious to know whether homeowners policy is sufficient to cover all the risks that may put me in trouble. Some of my friends have suggested me about umbrella policy. But I really don’t know what it is and how can I benefit from it.
Any help would be great.
Any help would be great.
Posted: Fri Apr 24, 2009 10:57 am Post Subject:
Honestly the umbrella policy would offer the extra layer of coverage over an above the policy liability limit. Therefore, if you ever get sued where the compensation amount is likely to cross your homeowner policy limit the umbrella insurance policy would provide the additional protection.
Another thing with the umbrella insurance is that it’s inexpensive. Therefore, one may manage coverage level of $1 million with additional cost of $150 to $300 a year. However, the coverage level and would cost would largely vary amongst the carriers.
~Jeremy
Posted: Fri Apr 24, 2009 11:05 am Post Subject:
One point I would like to add to the post made by Jeremy.....umbrella insurance also provides protection against libel and slander lawsuits.
Another important thing to remember that umbrella insurance benefits would be available only after the HO policy limit exceeds. Further, the insurers may ask you to meet certain criteria before they could sell umbrella insurance to you.
Carrying higher liability limit on the homeowner insurance may minimise the need of umbrella policy. But you better discuss the matter with your agent.
Posted: Fri Apr 24, 2009 11:09 am Post Subject:
Cathy, if you have assets to protect you would need umbrella insurance. Otherwise, you may be at a riks of losing your valuable possessions in a lawsuit.
Posted: Sat Apr 25, 2009 09:13 am Post Subject:
Cathy, if you have assets to protect you would need umbrella insurance. Otherwise, you may be at a riks of losing your valuable possessions in a lawsuit.
If I'm understanding properly then if you don't have anything valuable then buying umbrella policy is wastage of money. Please correct me if I've got it wrong.
Posted: Sat Apr 25, 2009 09:25 am Post Subject:
If I'm understanding properly then if you don't have anything valuable then buying umbrella policy is wastage of money. Please correct me if I've got it wrong.
Nope Cathy, it doesn’t work that way. Lemme put forward few questions to you,
* Are you a wage earner?
* Do you have a piece of antique rug in your home?
* Investments and bank accounts
* Home equity, which is your share in the house
If your answers to these questions are ‘yes’ then you may need to evaluate your requirement of umbrella policy.
Posted: Sat Apr 25, 2009 09:38 am Post Subject:
Hey, I've heard that in a settlement the claiment can get only the policy limit of the insured and not more. If that is ture then why one should be worried about getting sued and pay for the additional coverage.
Posted: Sat Apr 25, 2009 09:45 am Post Subject:
Hi Cathy
I’m a first time home buyer. I’m curious to know whether homeowners policy is sufficient to cover all the risks that may put me in trouble.
Let me also tell you that while homeowners insurance will cover a lot of things that you can think of, it will not cover damages related to flood, earthquake and damage as a result of negligence in maintenance. For these you need to purchase additional policies.
Posted: Sat Apr 25, 2009 09:54 am Post Subject:
Anon, many a times you must have seen people winning judgement over another and even garnishing their wages. IMO in these days of rising medical expenses the medical bills even for a minor fall can easily exceed the liability limit. The umbrella insurance policy would come handy in this time of distress and can save you from losing your home/car or wage.
Think about it!
Posted: Tue May 05, 2009 01:52 pm Post Subject:
so even umbrella insurance policy can't protect us from damages related to flood, earthquake whatever by bad weather or natural disastrous?
Posted: Tue May 05, 2009 06:23 pm Post Subject:
as far as i know natural disasters such as floods and earthquake, particularly these two are always sold as the additional coverage and are not covered under the insurance policy..
But yes there are few types that are covered under natural disaster which you need to check with the agent and on the policy dox..
Takin in to consideration the love for the lawsuits in America... i guess Umbrella insurance is a very good option.. unless you feel that little extra amount you shell out is a burden...
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