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GENERAL

1. HOW TO BUY INSURANCE
2. WHAT KINDS OF QUESTIONS SHOULD I BE EXPECTED TO ANSWER WHEN I AM APPLYING FOR AN INSURANCE POLICY? WHY DO INSURERS NEED SO MUCH INFORMATION?
3. WHAT ARE THE ADVANTAGES TO USING AN AGENT TO PURCHASE INSURANCE?

AUTO

1. WHAT SHOULD I CONSIDER WHEN PURCHASING AUTOMOBILE INSURANCE?
2. WHAT ARE SOME PRACTICAL THINGS I CAN DO TO LOWER MY AUTOMOBILE INSURANCE RATES?
3. I HAVE AN OLDER CAR WHOSE CURRENT MARKET VALUE IS VERY LOW – DO I REALLY NEED TO PURCHASE AUTOMOBILE INSURANCE?
4. IS ANYONE COVERED WHILE BORROWING MY CAR?
5. WHAT IS THE DIFFERENCE BETWEEN COMPREHENSIVE AND COLLISION COVERAGE?
6. WHAT FACTORS CAN AFFECT THE COST OF MY AUTOMOBILE INSURANCE?
7. SHOULD I BUY THEIR INSURANCE WHEN I RENT A CAR?
8. WHY SHOULD I BUY HIGHER LIABILITY LIMITS THAN THE STATE REQUIRES?

HOMEOWNERS

1. WHAT IS HOMEOWNERS INSURANCE AND WHO SHOULD BUY THIS TYPE OF COVERAGE?
2. WHAT IS THE DIFFERENCE BETWEEN "ACTUAL CASH VALUE" AND "REPLACEMENT COST"?
3. WHAT FACTORS SHOULD I CONSIDER WHEN PURCHASING HOMEOWNERS INSURANCE?
4. WHAT ARE SOME PRACTICAL THINGS I CAN DO TO LOWER THE COST OF MY HOMEOWNERS INSURANCE?
5. WHAT ARE THE POLICY LIMITS (I.E. COVERAGE LIMITS) IN THE STANDARD HOMEOWNERS POLICY? (NOTE: THIS ANSWER IS BASED ON THE INSURANCE SERVICES OFFICE’S HO-3 POLICY)
6. WHEN AND WHERE IS MY PERSONAL PROPERTY COVERED?
7. DO I NEED EARTHQUAKE COVERAGE? HOW CAN I GET IT?
8. DO I NEED FLOOD COVERAGE? HOW CAN I GET IT?
9. WHY SHOULD I DISCLOSE ANY SPECIAL COLLECTIONS OR HIGH VALUED PROPERTY ITEMS?
10. WHY SHOULD I CONSIDER HIGHER LIABILITY LIMITS?

LIFE

1. HOW MUCH LIFE INSURANCE SHOULD AN INDIVIDUAL OWN?
2. WHAT ABOUT PURCHASING LIFE INSURANCE ON A SPOUSE OR ON CHILDREN?
3. SHOULD TERM LIFE INSURANCE OR CASH VALUE LIFE INSURANCE BE PURCHASED?
4. HOW DOES MORTGAGE PROTECTION TERM INSURANCE DIFFER FROM OTHER TYPES OF TERM LIFE INSURANCE?
5. CAN AN EXISTING LIFE INSURANCE POLICY BE USED TO PROVIDE FOR THE REPAYMENT OF AN OUTSTANDING MORTGAGE LOAN?

RENTERS

1. WHY WOULD I WANT TO BUY RENTERS INSURANCE?
2. HOW DOES A RENTERS POLICY PROTECT MY PERSONAL PROPERTY?
3. WHY DO SOME APARTMENT COMPLEXES REQUIRE TENANTS TO HAVE RENTERS INSURANCE?
4. WHAT IF I SHARE MY RESIDENCE WITH A ROOMMATE? DO WE BOTH NEED TO HAVE RENTERS INSURANCE?

UMBRELLA

1. WHAT IS A PERSONAL UMBRELLA LIABILITY POLICY?
2. HOW DO I KNOW IF I NEED A PERSONAL UMBRELLA LIABILITY POLICY?

GENERAL

HOW TO BUY INSURANCE

1. Involve top management. Decisions on what level of coverage, what company, even which broker or agent to utilize must be determined only after top management involvement.
2. Plan ahead. Re-read and review your current policies and your future insurance needs at least 6 months in advance of your policy expiration dates. If you have questions, it is far better to ask them far in advance rather than at the last minute.
3. Know your insurer. Request a copy of the insurance company’s annual report. This might provide some insights on future needs for rate increases, cancellation plans or market fluctuations.
4. Decide how much coverage you really need. You must protect yourself from potential losses that you cannot afford. Decide how much risk you can assume and increase your deductibles or lower coverage limits. You do not want to be over insured in today’s high-cost market.
5. Clean house. Evaluate your operations. Do everything you can to minimize your chance of loss. Ask your insurer for a loss control consultation. Above all, when you make positive changes, keep a record to help you with contract negotiations.
6. Before starting something new or making changes, think insurance. As you develop new product lines, purchase new equipment, or make significant operational changes, talk first to your insurer to get a better understanding of the risk and increased costs these changes might require.
7. Keep claim loss records. A complete listing of any claims, open and closed, will enable you to present your business’ risk to an insurer. If your insurance company provides loss information, make sure your records and the insurance company’s records are consistent. If not, have the records corrected.
8. Know your rights. Insurance law protects you in several ways. Some key provisions include:
   • Written notice of cancellation must be sent at least 10 days (and in some cases 30 days) in advance;
   • Insurers can cancel policies “midterm” for the following reasons:
   • Non-payment of premium;
   • Policy obtained through material misrepresentation;
   • Insured violated any of the terms and conditions of the policy;
   • The risk originally accepted has measurably increased;
   • Loss of reinsurance by the insurer for all or substantial part could place the insurer in violation of insurance laws.
9. Avoid shopping around. Shop for coverage only when necessary. Accept modest rate increases as a necessary business expense – after all, you raise prices for your products or services, too. If you shop too often or change insurance companies frequently, you could be labeled a “carrier hopper” and insurance companies may refuse to bid on your coverage. Also, when the insurance industry hits a slump, you have a better chance of getting the coverage you want if you have a proven track record.
10. Honesty is the only policy. Whether you are changing insurance companies, adding coverage, or renewing your current policies, give as much relevant information to the agent and insurer as is available. This will prevent difficulties when a claim is submitted.

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WHAT KINDS OF QUESTIONS SHOULD I BE EXPECTED TO ANSWER WHEN I AM APPLYING FOR AN INSURANCE POLICY? WHY DO INSURERS NEED SO MUCH INFORMATION?
When you apply for an insurance policy, you will be asked a number of questions. For example, the agent might ask you your name, age, gender, address, etc. In addition, you will be asked a number of other questions which will be used to determine how likely you are to make a claim.

When an insurance company is deciding whether to not to offer automobile insurance to a potential customer, it will want to know about the person’s previous driving record, whether they have had any accidents or tickets and what type of car is to be insured.

Insurance companies have different programs for different customers. Adults with good driving records will generally pay less for auto insurance than will a young driver with traffic tickets. In order to determine which program you qualify for, an insurance company needs basic information about you.

In addition to your age, gender and driving experience, information about the vehicle you drive, and how you drive it, is also needed to determine a fair price. For example, a large luxury car costs more to repair or replace than a sub-compact; and, someone who commutes 30 miles each way is more likely to be in an accident than someone rides the bus to work and only drives on weekends.

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WHAT ARE THE ADVANTAGES TO USING AN AGENT TO PURCHASE INSURANCE?
By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is a direct contact can be vital when purchasing a product and absolutely necessary when filing a claim. A local, independent agent is able to deliver quality insurance with a competitive pricing and local personalized service.

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AUTO

WHAT SHOULD I CONSIDER WHEN PURCHASING AUTOMOBILE INSURANCE?
There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when purchasing automobile insurance.

1. Don’t base your decision on price alone. Base your decision on value – what you get is what you pay. Consider the quality of the company’s claims service and consumer education.
2. Purchase the amount of liability coverage, which makes sense for you.
3. You should decide which optional coverages you want. For example, do you want optional physical damage coverages or is the market value of your car too low to warrant purchasing them.
4. Once you have decided what you want in your automobile insurance policy, you can now decide from whom you would like to purchase the insurance.

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WHAT ARE SOME PRACTICAL THINGS I CAN DO TO LOWER MY AUTOMOBILE INSURANCE RATES?
There are a number of things you can do to lower the cost of your automobile insurance. The easiest thing to do is shop around.

It is not surprising to find quotes on automobile insurance that can vary by hundreds of dollars for the same coverage on the same car. When you shop, be careful to make sure each insurer is offering the same coverage. Many insurers use the same ISO (Insurance Services Office) policy forms, but this is not always the case.

Another way to lower the cost of your automobile insurance is to look for any discounts that you may qualify for. For example, many insurers will offer you a discount if you insure multiple cars under the same policy, or if you have had a driver education class in the last few years. Be sure to ask your agent or your company about their discount plans.

Another easy way to lower your costs is to increase your deductible. You should be careful to make sure that you have the financial resources necessary to handle any larger deductible.

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I HAVE AN OLDER CAR WHOSE CURRENT MARKET VALUE IS VERY LOW – DO I REALLY NEED TO PURCHASE AUTOMOBILE INSURANCE?
Most states have enacted compulsory insurance laws that require drivers to have at least some automobile liability insurance. These laws were enacted to ensure that victims of automobile accidents receive compensation when their losses are caused by the actions of another individual who was negligent.

Except for the minimum liability coverages that you may be required to purchase, many people with older cars decide not to purchase any of the physical damage coverages. It is often the case that the cost of repairing the damages to an older car is greater than it’s value. In these cases, your insurer will usually just “total” the car and give you a check for the car’s market value less the deductible.

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IS ANYONE COVERED WHILE BORROWING MY CAR?
Whenever you knowingly loan your car to someone, they will be covered under your automobile insurance policy. In fact, even if you do not give explicit permission each time a person borrows your car, they are still covered under your policy as long as they had a reasonable belief that you would have given them permission to drive the car. It is important to add that not all policy's conditions are the same. Any exclusion, limitation, and condition contained in your specific policy will prevail.

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WHAT IS THE DIFFERENCE BETWEEN COMPREHENSIVE AND COLLISION COVERAGE?
Collision is defined as losses you incur when your automobile collides with another car or object.

Comprehensive provides coverage for most other direct physical damage losses you could incur. For example, Damage to your car from a hailstorm will be covered under comprehensive.

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WHAT FACTORS CAN AFFECT THE COST OF MY AUTOMOBILE INSURANCE?
A number of factors can affect the cost of your automobile insurance – some of which you can control and some which are beyond your control.

The type of car you drive, the purpose the car serves, and your driving record, and where you live can all affect how much your automobile insurance will cost you.

Even your marital status can affect your costs. Statistics show that married people tend to have fewer and less costly accidents than do single people.

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SHOULD I BUY THEIR INSURANCE WHEN I RENT A CAR?
When renting a car, you are inevitably faced with the question, "Should I buy the Loss Damage Waiver insurance when I rent a car, or does my personal automobile policy cover it?" Our answers are "Yes" and "Maybe."

A typical Rental Car agreement states that providing the car is used as permitted by the terms and conditions of the agreement, the renter is responsible for any and all loss or damage to the car resulting from any cause whatsoever. Further, your responsibility will not exceed the full value of the car at the time it is lost or damaged, less its salvage value, plus actual towing, storage and impound fees and a reasonable charge for loss of use. And, if, at the beginning of the rental, you accept the optional Loss Damage Waiver, the Rental Car Company will not hold you responsible for loss of or damage to the car.

The broad responsibilities you are agreeing to are not all covered by your own insurance. For example, you are responsible for any and all loss resulting from any cause whatsoever. This includes collision and accidental damage to the car, engine damage, mechanical defects, fire, overheating, oil seal leaks, etc. You are also responsible for the full value of the rental car, including "loss of use," or the reasonable rental income that the car would earn if not damaged. As a renter, you are exposed to vast liability, most not covered by your personal insurance policy.

However, the Loss Damage Waiver has major loopholes you should be aware of. Most rental companies have a Loss Damage Waiver "Null and Void" policy, rendering you responsible for the full amount of damage if you or any additional driver violates the terms of the rental agreement. This includes subjective terms such as "abusing the car", "driving recklessly or while under the influence of alcohol or drugs" and "operating the car off paved roads."

So, if you or any driver violates any of the conditions of the lease, the damage waiver you’ve paid for is null and void. It is reasonably easy to violate these damage waiver provisions, leaving you with huge liabilities. For instance, what does the term "drive recklessly" mean? Is one drink considered "under the influence?" If the valet damages the car, or if we drive on a dirt road, we have violated the terms and conditions of the rental agreement, and our LDW becomes null and void.

We at Insurance Associates suggest you always buy the Damage Waiver Provisions and attempt not to violate its conditions. We think the liability without it is too great despite the excessive cost of the damage waiver and its loopholes.

This is especially true for truck rentals. Few personal insurance policies cover commercial rental vehicles. We recommend reviewing the insurance provisions of a truck lease carefully, as the smaller rental companies do not provide adequate, or in most cases, any insurance for the renter. Never rent a truck personally unless you are satisfied the rental company is providing insurance.

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WHY SHOULD I BUY HIGHER LIABILITY LIMITS THAN THE STATE REQUIRES?
Accidents happen. Vehicles are getting more and more expensive to repair or replace. How far do you think your present Property Damage Liability limit will take you if you are unfortunate enough to hit (or cause damage to) more than one vehicle? Or City, County, State property? Lawyers are now asking for larger awards to include lifetime wages, rehabilitation, therapy, etc. How far do you think your present Bodily Injury Liability limit will take you if you are unfortunate enough to injure (or cause injury or death to) a young “professional”? What if there is more than one person injured? It is important that you routinely discuss higher liability limit options and costs available with your agent.

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HOMEOWNERS

WHAT IS HOMEOWNERS INSURANCE AND WHO SHOULD BUY THIS TYPE OF COVERAGE?
Homeowners insurance is one of the most popular forms of personal lines insurance on the market today. The typical homeowners policy has two main sections: Section I covers the property of the insured and Section II provides personal liability coverage to the insured. Almost anyone who owns or leases property has a need for this type of insurance. And many times, homeowners insurance is required by the lender as a part of the requirements in obtaining a mortgage.

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WHAT IS THE DIFFERENCE BETWEEN “ACTUAL CASH VALUE” AND “REPLACEMENT COST”?
Covered losses under a homeowner’s policy can be paid on either an actual cash value basis or on a replacement cost basis. When “actual cash value” is used, the policy owner is entitles to the depreciated value of the damaged property. Under the “replacement cost” coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type of quality at current prices.

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WHAT FACTORS SHOULD I CONSIDER WHEN PURCHASING HOMEOWNERS INSURANCE?
There are a number of factors you should consider when purchasing any product or service, and insurance is no different.

Here is a checklist of things you should consider when you purchase homeowners insurance.

1. First and foremost, purchase the amount and type of insurance that you need. Remember that if your policy limit is less than 80% of the current replacement cost of your home, any loss payment will be subject to a coinsurance penalty. Also, determine the amount of personal property insurance and personal liability coverage that you will need.
2. Second, determine which, if any, additional endorsements you want to add to your policy. For example, do you want the personal property replacement cost endorsement or the earthquake endorsement?
3. Finally, once you have decided what you want in your homeowners insurance policy, you can now decide from whom you would like to purchase the insurance.

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WHAT ARE SOME PRACTICAL THINGS I CAN DO TO LOWER THE COST OF MY HOMEOWNERS INSURANCE?
There are a number of things you can do to lower the cost of your homeowners insurance. The best thing for you to do is to shop around.

It is not surprising to find quotes on homeowners insurance can vary by hundreds of dollars for the same coverage on the same house. When you shop, be careful to make sure each insurer is offering the same coverage. Many insurers use the ISO (Insurance Services Office) policy forms, but this is not always the case.

Another way to lower your costs is to look for any discounts that you may quality for. For example, many insurers will offer a discount when you place both your automobile and homeowners with them. Other times, insurers offer discounts if there are deadbolt exterior locks on all your doors or if your home has a security system. Be sure to ask your agent or company about discounts that you may quality for.

Another easy way to lower your costs is to raise your deductible. Be careful to make sure that you have the financial resources necessary to handle the larger deductible.

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WHAT ARE THE POLICY LIMITS (I.E. COVERAGE LIMITS) IN THE STANDARD HOMEOWNERS POLICY? (NOTE: THIS ANSWER IS BASED ON THE INSURANCE SERVICES OFFICE’S HO-3 POLICY)
Coverages A and B provide protection to the dwelling and other structures on the premises on an “all risks” basis up to the policy limits. The policy limit for Coverage A is set by the policy owner at the time the insurance is purchased. The policy limit for Coverage B is usually equal to 10% of the limit on Coverage A. Coverage C covers losses to the insured’s personal property on a named perils basis. The policy limit on Coverage C is usually equal to 50% of the policy limit on Coverage A. Coverage D covers the additional expenses that the policy owner may incur when the residence cannot be used because of an insured loss. The policy limit for Coverage D is usually equal to 20% of the policy limit on Coverage A. The coverage limit on Coverage E – Personal Liability – is determined by the policy owner at the time the policy is issued. The coverage limit on Coverage F – Medical Payments to Others – is usually set by the company at $1,000 per injured person. It is important to add that not all policy's conditions are the same. Any exclusion, limitation, and condition contained in your specific policy will prevail.

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WHEN AND WHERE IS MY PERSONAL PROPERTY COVERED?
Coverage C, which provides named perils coverage, applies to all your personal property (except property that is specifically excluded) anywhere in the world. For example, suppose that while traveling, you purchased a desser and you want it shipped home. Your homeowners policy would provide coverage for the named perils while the dresser is in transit – even though the dresser has never been in your home. It is important to add that not all policy's conditions are the same. Any exclusion, limitation, and condition contained in your specific policy will prevail.

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DO I NEED EARTHQUAKE COVERAGE? HOW CAN I GET IT?
Direct damages due to earthquake are not covered under the standard homeowners insurance policy. If you live in an area that is prone to earthquakes, you probably may want to consider purchasing this coverage. Coverages, limits and conditions differ by company so it is important that you discuss your needs and concerns with your agent or company offering the coverage.

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DO I NEED FLOOD COVERAGE? HOW CAN I GET IT?
Direct damages due to flood are not covered under the standard homeowners insurance policy. If you live in an area that is prone to flood damage, you probably may want to consider purchasing this coverage. Flood Insurance can be offered by your agent through the National Flood Insurance Program. It is important that you discuss your needs and concerns with your agent.

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WHY SHOULD I DISCLOSE ANY SPECIAL COLLECTIONS OR HIGH VALUED PROPERTY ITEMS?
All homeowners insurance policies contain “special limits” on certain types of property. If you own any high value property (jewelry, furs, fine arts, silver, etc.) or collection of items (antiques, firearms, coins, stamps, etc.) it is important that you advise your agent so that adequate protection can be discussed before any loss occurs.

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WHY SHOULD I CONSIDER HIGHER LIABILITY LIMITS?
Accidents happen. You have a dog, a pool, a balcony. You host a few dinner or cocktail parties or other social functions a year. If someone alleges that you are liable for their injuries, remember that lost wages, stress, rehabilitation and therapy costs, along with attorney’s fees rise each year. It is important that you routinely discuss higher liability limit options and costs available with your agent.

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LIFE

HOW MUCH LIFE INSURANCE SHOULD AN INDIVIDUAL OWN?
Rough “rules of thumb” suggest an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account in determining a more precise estimate of the amount needed.

Important factors include:

1. Income sources (and amounts) other than salary/earnings;
2. Whether or not the individual is married and, if so, what is the spouse’s earning capacity;
3. The number of individuals who are financially dependent on the insured;
4. The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan;
5. Whether any special life insurance needs exist (e.g.. mortgage repayment, education fund, estate planning), etc.

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WHAT ABOUT PURCHASING LIFE INSURANCE ON A SPOUSE OR ON CHILDREN?
In certain circumstances, it may be advisable to purchase life insurance on children; generally, however, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s). It is of utmost importance that the income earning capacity of the primary breadwinner be protected, if possible, through the purchase of the required amount of life insurance before contemplating the purchase of life insurance on children or a non-wage earning spouse. In a dual-earning household, it is important to protect the income earning capacity of both spouses. Life insurance on a non-wage earning spouse is often recommended for the purpose of paying for replacement household and child care services lost at this individual’s death. The most notable benefits of purchasing life insurance on children would be the low costs and convertible options (medical or health conditions) of the child at an older age.

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SHOULD TERM LIFE INSURANCE OR CASH VALUE LIFE INSURANCE BE PURCHASED?
Although a difficult question – one whose answer will vary depending on circumstances – several principles should be followed in addressing this issue.

It must first be recognized that in any life insurance purchasing decision, there are at least two basic questions that must be answered:

1. “How much life insurance should I buy” and
2. “What type of life insurance policy should I buy?”

The “insurance” question should always be resolved first. For example, the amount of life insurance that you determine that you need may be so large that the only way in which this needed amount can be afforded is through the purchase of term insurance with it’s lower premium.

If your ability (and willingness) to pay life insurance premiums is such that you can afford the desired limit of insurance under either type of policy, it is then appropriate to consider the “financial” decision – which type of policy to buy. Important factors affecting the “financial” decision include your income bracket, whether the need for life insurance is short or long term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risk.

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HOW DOES MORTGAGE PROTECTION TERM INSURANCE DIFFER FROM OTHER TYPES OF TERM LIFE INSURANCE?
The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. While the face amount of the policy decreases with time, the premium usually remains at level amount.

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CAN AN EXISTING LIFE INSURANCE POLICY BE USED TO PROVIDE FOR THE REPAYMENT OF AN OUTSTANDING MORTGAGE LOAN?
Yes; the purchase of a new mortgage protection term insurance policy is usually not required by the lender. An existing policy, either term or cash-value life insurance, can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured’s death.

Credit life insurance is frequently recommended in conjunction with the taking out of an installment loan when purchasing expensive appliances or a new car, or for debt consolidation. Is credit life insurance a good buy? Credit life insurance is frequently more expensive than traditional term life insurance. Further, if you already own a sufficient amount of life insurance to cover your financial needs, including debt repayment, the purchase of credit life insurance is normally not advisable due to it’s relatively high cost.

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RENTERS

WHY WOULD I WANT TO BUY RENTERS INSURANCE?
If you live in an apartment or rented house, renters insurance provides important coverage for both you and your possessions. A standard renters policy protects your personal property in certain cases of theft or damage and may pay for temporary living expenses if your rental is damaged (including loss of use). It can also shield you from personal liability (a guest slips and falls or is bitten by your dog, etc).

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HOW DOES A RENTERS POLICY PROTECT MY PERSONAL PROPERTY?
A renters policy provides “named perils” coverage. This means your property is protected from all the perils that are specifically listed in your policy. These usually include:

• Fire or lightning
• Windstorm or hail
• Explosions
• Riots
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Falling objects
• Weight of ice, sleet or snow
• Accidental discharge or overflow of water or steam
• Sudden and accidental tearing apart, cracking, burning or bulging
• Freezing
• Sudden and accidental damage from artificially generated electrical current
• Volcanic eruptions (but this does not include earthquake or tremors)

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WHY DO SOME APARTMENT COMPLEXES REQUIRE TENANTS TO HAVE RENTERS INSURANCE?
The owners of these apartment complexes require their tenants to have renters insurance to ensure that they have personal liability coverage. Owners of apartment complexes carry property insurance to protect themselves in the event that the apartment building is damaged. However, if a negligent tenant causes damage, the owner’s insurer will sue the responsible tenant for the amount of the damage they caused. The owner wants to make sure that the tenant has insurance coverage if this occurs.

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WHAT IF I SHARE MY RESIDENCE WITH A ROOMMATE? DO WE BOTH NEED TO HAVE RENTERS INSURANCE?
Standard renters policies cover only you and relatives that live with you. If your roommate is not a relative, each of you will need your own renters policy for property and liability protection.

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UMBRELLA

WHAT IS A PERSONAL UMBRELLA LIABILITY POLICY?
The personal umbrella liability policy is an insurance contract designed to accomplish two goals.

1. First, it increases the liability protection beyond what the policy owner already has in the existing homeowners and automobile insurance policies.
2. Second, the personal umbrella policy is designed to fill in the gaps in a policy owner’s liability coverage since several types of liability exposures exist that are not covered by the auto or homeowners policies.

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HOW DO I KNOW IF I NEED A PERSONAL UMBRELLA LIABILITY POLICY?
It used to be that the only people who needed personal umbrella liability policies were wealthy individuals who had sizeable amounts of personal assets that would be at risk in a lawsuit.

However, in our very litigious society, many people are realizing that they have a need for more liability insurance than what is provided under their homeowners and automobile insurance policies. The personal umbrella policy is ideally suited to provide this extra protection.

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