When It Pours, You Need an Umbrella!

In addition to reviewing and updating your insurance program regularly, you can avoid possible gaps in your coverage by purchasing a personal umbrella policy. Once a policy used only by high net worth individuals, personal umbrellas have become an option for anyone who may need extra liability protection.

Since we live in an increasingly litigious society, the need for liability protection is quite real. A personal umbrella expands the liability coverage you already might have through your homeowners and/or automobile insurance policies, in addition to protecting you in some unforeseen circumstances.Umbrella Provisions

Most umbrella policies provide at least $1,000,000 in excess liability protection. An umbrella can also cover many situations that your current policies might omit. The following are some added benefits of a personal umbrella policy:

• It can provide payment for legal defense expenses when primary insurance coverage does not apply.
  
• It can protect you from risk exposures while you’re traveling outside the country. Umbrella protection is usually applicable worldwide.
  
• It can cover a watercraft that is sparingly used (not more than 30 days per year), watercraft in storage, and non-owned recreational vehicles.
  

Umbrella Exclusions

Bear in mind, there are some situations the umbrella may not cover. For instance, umbrellas usually do not apply to uninsured motorists, business property, or professional activities.

Also, you may have to meet certain requirements to qualify for an umbrella. For instance, you might need to purchase higher liability limits on your current auto and homeowners policies in order to satisfy the umbrella’s underlying requirements. If you have young drivers listed on your policy, have numerous traffic violations, or own a vacation home or a boat, you may find it more difficult or more expensive to obtain a personal umbrella policy.

However, securing an umbrella may still be worth the effort. Should you ever find yourself facing a lawsuit, any holes in your current liability coverage could end up costing you. A personal umbrella can help you effectively fill in gaps in coverage. For more information on this valuable protection plan, please give us a call.

Water in the Basement

Flooding in basements can cause expensive water damage, especially if problems are not identified and rectified quickly. Many times, soil settles alongside a building, allowing rainfall to flow toward it and down a foundation wall. Water can then find its way into the basement through cracks in the home’s foundation or floor slab. Over time, this water can deteriorate basement walls and cement floors to the point where they are no longer waterproof.

In order to prevent this problem, drainage can be improved by installing systems that allow water to drain away from the building, such as French drains. Owners can also water seal the basement walls and floors in order to prevent flooding.

It is important to note that homeowners insurance does not cover flood damage. However, you can protect yourself by purchasing special flood insurance, available from most insurance agencies through the National Flood Insurance Program (NFIP). A preferred risk policy through the NFIP, which covers both a building and its contents, costs a little over $100 per year.

Disaster Preparedness: Protecting
Your Family and Your Property

How would you react if the news came that a hurricane, tornado, or fire was heading in your direction? Would you scramble to protect your home and family, uncertain of where to begin? Or, would you calmly pull out a detailed plan for such emergencies? Would your family be ready to evacuate quickly with essential supplies? Would your house be secure?

Planning for a disaster is no different from other measures you likely take to protect yourself and your family from future hardship, such as insuring your life, saving for retirement, and getting regular medical check-ups. Preparing for a disaster takes a small investment of time and money. Even a very basic plan could one day save you and your loved ones from financial ruin, injury, or even death.

Here are some steps you can take to prepare your family to cope in an emergency:

Plan to evacuate. Think carefully about what you and your family would do if you were advised to evacuate your home. Plan in advance where you would go and how you would get there. Establish a meeting place for family members in case you become separated. Keep your gas tank at least half full at all times. Prepare a kit of emergency supplies to last you three days, including food and water, a first aid kit, clothing and blankets, and prescription drugs. You should also have an envelope on hand with enough cash or travelers checks to last your family about three days, as well as several credit cards with high available balances.

Store important documents in an "evacuation box." Collect and make copies of all your key financial and personal documents, and make a written and photographic inventory of all your valuables. Essential documents should be stored in a bank safe-deposit box located some distance from your home or in an airtight, waterproof, and fireproof safe or container that can easily be taken with you in an emergency evacuation.

Protect your property. If you live in an area that is frequently hit by natural disasters, consider what you can do to mitigate potential damage to your property. Depending upon the type of disaster likely to strike, you may want to take steps like anchoring the foundation and roof, installing hurricane shutters on windows and glass doors, adding fire-resistant siding, securing objects that could fall, moving electrical panels and furnaces to upper levels, installing smoke detectors, and clearing brush from around the house.

In addition, develop an action plan for evacuation. Before leaving your house, secure outdoor furniture, unplug electrical equipment, shut down gas and water utilities, and lock windows and doors.

Get the family involved. Assign evacuation-related tasks to each family member, and conduct drills to ensure that everyone in your household knows exactly what to do in an emergency situation.

Purchase necessary insurance coverage and review your policies regularly. Many people who have lost their homes to disasters find their insurance policies do not cover the cost of rebuilding. Review your homeowners insurance policy annually to make sure it reflects the actual replacement cost of your home and its contents. Be aware that your policy may not cover damage due to specific causes, including flooding.

Your particular circumstances will ultimately determine what measures are necessary to prepare your family for weathering an emergency. Whatever action you decide to take, remember that most disasters strike with little or no warning—the time to get ready is now.