It's Raining Lawsuits: Do You Need An Umbrella Policy? | Forex ...

What It Doesn?t Cover
An umbrella policy is a form of personal insurance, so it won?t protect you from lawsuits related to a business you own. This includes babysitting, or ?compensated child care? in insurance lingo, by the insured (because that would be considered a business). However, your policy may still cover your children if they babysit part-time on someone else?s property.

SEE: Insurance Coverage: A Business Necessity

Umbrella insurance also does not cover activities like drag racing or any other high-risk, unnecessary use of your vehicle. Also, it may not cover all types of vehicles, such as recreational motor vehicles, truck tractor trailers, farm tractors or trailers, or more generally, vehicles exceeding a certain weight limit, such as 12,000 pounds. The policy won?t cover damage to your own car (your auto insurance should provide for that) or damage to your own property (your homeowners insurance should cover it).

If you commit a crime (such as driving under the influence) and are forced to pay restitution, an umbrella policy won?t cover it. Likewise, intentional acts, such as sexual harassment, discrimination, intentional bodily injury, intentional property injury and other willful and malicious acts by the insured are not covered. (As the old saying goes, ?crime doesn?t pay?.)

Furthermore, an umbrella policy does not provide you with excess health insurance coverage. Most health insurance policies have annual and lifetime limits on what they will pay. If you?re concerned that those amounts are too low, you will need to purchase more comprehensive health insurance, because an umbrella policy won?t help you.

These are just a few examples of things that an umbrella policy generally will not cover. Because there are quite a few exclusions, if you?re concerned about being covered for a specific event, ask your insurance agent if an umbrella policy will cover it and, if not, what additional policy you can purchase to protect yourself.

Underlying Insurance Requirements
Because an umbrella policy is designed to be a form of secondary insurance, it will have underlying insurance requirements. This means that you?ll have to have a certain amount of auto insurance and homeowners insurance coverage as a condition of being approved for an umbrella policy. The underlying insurance requirements will vary depending on the company you get your umbrella through, but typical coverage includes:

• Auto insurance bodily injury coverage of $250,000 per person/$500,000 per accident
• Auto insurance property damage coverage of $100,000 per accident
• Homeowners insurance personal liability coverage of $500,000

Additionally, some umbrella insurance providers will require you to have your auto and homeowners insurance with them before they will issue you an umbrella policy. Sometimes having all of your policies with one insurer saves you money, but sometimes it doesn?t ? switching your homeowners and auto insurance policies to the umbrella provider can potentially make umbrella insurance more expensive than just the umbrella insurance premium itself. If you don?t already have the underlying insurance required by an umbrella policy, this will also effectively make your umbrella policy more expensive.

Article source: http://feeds.investopedia.com/~r/InvestopediaArticles/~3/zPmmknQ0xMY/do-you-need-an-umbrella-policy.asp

Source: http://www.fxreport.info/articles/its-raining-lawsuits-do-you-need-an-umbrella-policy

callista rick perry travis barker get back on board rob lowe peyton manning what is sopa marianne gingrich