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: Tue May 05, 2009 07:12 pm Post Subject:
umbrella policy is placed by lenders on all seconds, condominiums, townhouses and PUDS, it does cover Hazard, Earthquake is not necessary will be covered in it… Its placed when the borrower dsnt have ins or has not informd the lender that he has insurance.. its as good as having a home owners insurance..
Posted: Tue May 05, 2009 07:12 pm Post Subject:
All US houses req a mandatory Hazard ins.. then depending upon their location they need other additional policies like houses in a flood zone need flood ins, earthquake zone need dat particular ins.. and these areas are infrmd by the FEMA ie federal emergency management agency
i guess that answers the natural calamity queries......
Posted: Wed May 06, 2009 08:25 am Post Subject: Umbrella policy for homeowners
Hi,
This is with regards to cathy's quest.
Ya your home owners policy will be sufficient to cover most of the risks and loss.
However the Umbrella insurance policy is placed by the lender
this happens in situations where a borrower does not have an insurance policy or fails to provide his policy details to the lender..
The Lender has interest in the property and to protect the same they set you up for an insurance policy, ie called the umbrella policy..
The umbrella policy actually covers more than what you homwowners policy will do..
Its just that you will have to pay the insurance premium to you lender.
It does cover more than the liabiliy limit and gives coverage over the law suite as well..
Thanks
Posted: Fri May 08, 2009 11:48 am Post Subject:
Okay DJ, this is an interesting statement.
However the Umbrella insurance policy is placed by the lender
this happens in situations where a borrower does not have an insurance policy or fails to provide his policy details to the lender..
Does it mean that one can purchase umbrella policy without buying standard HO plan?
Posted: Mon May 11, 2009 06:37 am Post Subject:
Hi Kelvin
If you do not have standard HO policy.. and you have a mortgage... your mortgage company will put you on an unbrella policy.. all they will do is request you to send in the policy details if you have an HO, they will send you about 2-3 letters asking for the policy details.. and if you fail to provide those details then they will place an unbrella policy... As i also said when you have a mortgage.. the mortgage co. also has equal interest in you property and to cover them from RISK they put you on a ubrella policy...
Posted: Mon May 11, 2009 10:36 am Post Subject:
DJ:
I guess Umbrella insurance is designed with the purpose of adding more of liability coverage with home owners or auto insurance. It reimburses you for the medical bills, wages lost and the rehabilitative therapy as a result of the negligence of the at-fault party. Am I correct?
Steven
Posted: Tue May 12, 2009 09:18 am Post Subject:
Okay DJ,
If you do not have standard HO policy.. and you have a mortgage... your mortgage company will put you on an unbrella policy..
Are you then required to pay more on the coverage than the standard rate? And, would this policy cover all the perils that are covered under the standard HO policy?
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