The Mighty Texas Personal Umbrella Policy

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A better understanding of the personal umbrella policy here in Texas.

Thursday, October 12, 2006

Find The Best Insurance Coverage That Is Right For You by Gaetane Ross
The following article includes pertinent information that may cause you to reconsider what you thought you understood. The most important thing is to study with an open mind and be willing to revise your understanding if necessary.
Liability insurance is the portion of homeowner or auto that pays for expenses such as the injured persons medical bills, therapy, and lost wages due to the negligence of the accident. The liability portion of the insurance policy also covers a legal defense representative if the negligence would happen to get taken to court. Almost all states have financial responsibility laws that will hold drivers accountable for bodily injury and property damage resulting from car accidents and the fault of the driver could be sued for damages.
Life insurance is a must for just about anyone. Not only is it important to have so that your loved ones left behind can afford to pay for your burial, but is also a good thing to have so that they can be taken care of. For some people when they die they still have obligations to loved ones. When the person that dies has life insurance, the beneficiary will receive the money and they can distribute as they are told or as they wish. This will help to ensure that people left behind are able to care for themselves in the future without the loved ones being around.
You will be able to shop around for all the different insurances that you want to purchase. There are many different companies available to give you quotes. It is easy to obtain a quote and you can do this at anytime that you want. Most of the time a consumer will have the right to cancel a policy with someone and open a new one with another company. You have the right to get the best coverage that has the best deal that you can get. Take the time to shop around and compare prices.
If you are educating yourself on how the different insurances will help you, you can find the best insurance coverage that is right for you. You will be making a good decision about protecting your investments. This will mean you, your home, your automobiles, and your dependants. This is a responsible decision that needs to be made for every individual. This is a decision that will make a person feel better about everything and have fewer worries.
If you base what you do on inaccurate information, you might be unpleasantly surprised by the consequences. Make sure you get the whole insurance story from informed sources.
There are people suing everyone these days. There are limits to all the different policies that people hold on everything. If an accident happens and it is your fault, you have to make sure that you have enough coverage to cover the cost of your negligence. There is no way to predict what is going to happen and there are many people who want a lot of money if you injury them. Umbrella insurance is something that can help you in these situations. This is something that everyone needs to consider for him or herself.
You can usually have as much homeowners insurance that you want within reason. You are going to need to have homeowners insurance if you have any type of loan on the home. You will need at least enough to cover the market value of the home. You will then be able to have as much insurance on the contents and any other improvements on the home that you have made. It is always better to have more than enough insurance than not enough when it comes to your home.
Make sure that you understand all of your insurance policies. You need to read over the paper work and make sure that you are aware of everything that is included in them. If there is something missing in your policy or if you have any questions, you need to contact your agent and find out what you are in need of and how to change it. Make sure that you have an agent that you trust and that you can feel comfortable with.
Before a person decided to purchase their new vehicle, they should check with their current insurance provider about gap insurance. It may already be included in the auto premium. If is not, this will be something that you can purchase for a decent cost. There are some insurers that do not offer this type of insurance at al
Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on insuran
About the Author
Gaetane has thoroughly researched the Internet to locate the best High Income Business Opportunities that will enable you to start making money from your own home. http://4instant-online-business.com

Umbrella InsuranceBy Tristan Andrews

Umbrella insurance is meant to shield consumers from charges that go beyond what their traditional insurance covers. In auto coverage, an umbrella plan will kick in after a traditional liability or comprehensive insurance plan stops paying. For example, if you're in an accident and are found to be at fault, the insurance you have will pay for the charges up to the limit that you have placed on the policy. A $15,000 liability policy will pay for the first $15,000 damages, but if your bill comes to $40,000, you're liable for the remaining $25,000. An umbrella insurance policy will pay that bill, and you'll be left in reasonable financial condition.
Umbrella insurance doesn't just cover damages due to car accidents. It can also protect you from becoming financially devastated if you're sued for something that is beyond your control. If a person is damaged on your property, or by something on your property (even a tree!), you can be held legally responsible. Although some states do protect certain assets from being seized, such as your home or vehicle, it is easy to see how much damage even a small lawsuit can do to your financial security.
The cost of umbrella insurance varies by state and by your location in that state. The cost is different for the same reasons that traditional insurance is different, so whatever factors influence the cost of your traditional auto insurance can be expected to play a part in the cost of your umbrella policy. A good range of cost for umbrella insurance is between $200-$300 per year. For that small amount of money, the insurance can contribute up to five million dollars of a lawsuit claim, making it well worth the small increase in the cost of premiums.
Because of the nature of umbrella insurance, it carries a high deductible, sometimes of more that $200,000. Of course, you are not paying that amount out. This is the amount that "you" have to pay before it kicks in, but "you" if often your primary car or homeowners' insurance. Most companies that sell umbrella insurance will require that you have auto insurance and homeowner's insurance that is equal to your deductible. This ensures that you don't have to pay any more out-of-pocket than necessary.
There are times that it's better be "self-insured." This simply means that you are responsible for paying all of your insurance costs, which translates into an easy concept: you don't have insurance! Those who choose to be self-insured do so because they don't expect to ever need it. For example, if you don't drive but once a week, or you're a hermit and don't invite people to your home, you could possibly afford to be self-insured. But if you're a typical, extroverted American who uses a vehicle on a daily basis, it would be to your benefit to consider an umbrella insurance policy.
Tristan Andrews is a writer for California Car Insurance.

Home and Auto Insurance - Save Money When You Combine ThemBy Greg Haehl

Home and auto insurance almost seem inseparable. They go hand in hand and they should be purchased together. There are too many advantages of having your auto and home insurance with the same company. These two insurance purchases are the backbone of your property and casualty insurance portfolio and so it behooves you to pursue the market place for the right insurance company. Everyone has a preference on how they want to do business. There are a lot of folks that like to shop for insurance online but want an agent. The online shopping is convenient at the beginning but these folks want a servicing agent at the end of the process. There are those folks that want to eliminate the agent altogether and are perfectly satisfied with doing business online or over the telephone with a customer service representative. These philosophies need to be ironed out before you shop for a new carrier.
The multiple policy discounts is the main reason that you shop for both auto and home insurance with one company. There are other factors involved with having the two with one company. The insurance company gives the discount because it creates retention and retention means profitability. Insurance companies usually begin to profit from a policy holder in and around the sixth or seventh year. They view the multi-policy customer more favorably during the underwriting process at purchase. They will often accept an auto accident or two if the two policies are combined. You may also find that it is much easier to purchase a personal umbrella liability policy if both auto and home insurance are with the same company. There are specific limits required on both auto and home insurance in order to purchase the umbrella policy.
The next time you purchase auto or home insurance make sure that you combine the two in the quoting process. You may leave your self vulnerable for cancellation if you have a mono-line auto policy with one company and a mono-line home policy with another.
Please see our recommended sources for low rate insurance quotes Home Owners Insurance, Medical Insurance, Cheap Car Insurance.

Personal Liability Insurance Important Considerations
By Grant Davis

The basic coverage for personal liability in standard homeowners, rental, and auto insurance policies often will not cover high losses of court awarded damages. Additional personal liability insurance will add a higher level of protection. This additional policy forms an umbrella because it covers protection above and beyond standard homeowners and auto policies.
Additional costs will vary with insurance companies, but usually average from $200 to $300 a year for additional protection of 1 million dollars. This coverage may insure automobiles, boats, homeowners, and renters insurance. Most insurance companies require basic insurance of $100,000.
The insured should ask the following questions:
1. How much do I have to lose? 2. What is the monetary total of my assets? 3. How much would legal fees cost me? 4. Are umbrella personal liability policies which cover one million dollars or more worth the extra premiums? Most insurance advisors recommend that they are.
Rate yourself and your family:
Are you careless? Do you own a pool or an active recreation room? Do other people work in your home? Have accidents occurred in your home? Add to this list of possible personal hazards.
If you answered yes to any question, you need additional protection of the umbrella liability insurance policy. Don’t forget to buy additional auto insurance.
Study liability insurance on the internet or consult your insurance needs with a reliable agent. The internet has many clear, illustrated paragraphs of available types of policies. Individuals may study thousands of agents and companies, have questions answered, and purchase all types of insurance policies online from the leading insurance companies of the world.
Do not risk future financial disaster because you failed to act by saying, “It can’t happen to me. I don’t need extra coverage.” The coffee table in your living room that you gingerly step around could cause a house guest to topple over. Another friend on an overnight stay slips on the staircase as she is on the way to the kitchen to get a cup of warm milk. These people might not be injured, but it is possible.
If anyone has an accident in your home or on your grounds, they could be severely injured. That is when you are in dire need of a personal umbrella policy. The insured needs to evaluate all possible situations that could lead to a major loss.
Remember personal liability insurance does not cover any business whether it is operated in the home or at an independent location. They are separate entities. The insured needs business insurance to cover any losses. Umbrella policies are available to cover the insured’s business.
If you still have doubts, get assistance from a certified public accountant who does not make a commission on insurance sales, but charges for the office visit and the advice. Also, and very important, take the time to read every word of your policy, and if you don’t understand it: ASK QUESTIONS.
Grant Davis, is a freelance writer and has worked in a variety of fields, including teaching.
For more information about liability insurance of all types go to:
http://www.liability-insurance-central.com/

Thursday, October 05, 2006

Texas Personal Umbrella Policy, Who Needs One?

So, who really needs a personal umbrella policy? There are a few things to consider when making that decision.

First, can you afford the risking of losing your assets or future wages due to a large liability loss?
If you are a self-employed business owner, and PUP is something that you might want to look into. If you are sued for a large liability loss your business could be in jeopardy. Your house is another asset that you can’t afford to lose. (In Texas we have the Homestead Act that prevents us losing our home in lawsuits.) Your future wages suffer tremendously because of a burden like a lawsuit.

Second, are you at risk of being sued?
Having teenage drivers on your auto policy creates one the most high-risk situations of being sued. They have little driving experience and have not yet developed ideal defensive driving skills. At your home, you probably have a pool or a trampoline. Those are attractive nuisances, especially to children and teenagers.

Third, what is the difference in cost to raise your liability limits in the underlying policies and the cost of an umbrella policy?
For example, let’s say it’s going to cost you $40 more every six months to raise your liability limits on your vehicle. That is about $6 or $7 more a month on your auto policy. Generally on a home policy there is a minimum of $10 or $15 difference a year to raise your limits. That’s less than a $2 a month. Generally speaking a PUP can cost an average of $200-$230 a year. Which is about $20 dollars a month on your PUP. So, in this scenario, the total of $9 increases plus $20. This would be a great opportunity to get a personal umbrella policy.

Fourth, know your gaps.
You have to consider two types of gaps:
Coverage gap-personal injury liabilities from charges resulting from libel, slander and invasion of privacy are not usually covered on your property policy.
Limits Gap-A person could get sued for more that the limits on the underlying policies. (Ex. auto and home)

If any of these are of concern and then a person umbrella policy is highly recommended.

Texas Umbrella Policy, The Scenario...

To see how that personal umbrella policy works, there always has to be a scenario or dramatization.

Let’s imagine a family with a husband, wife, and teenage son. Jan and Bill are the parents, and their teenage son’s name is Bobby. Bobby just got his license about a month ago. His parents trust him enough to go to a party but has to be back promptly at midnight. Bobby is having a good time at the party but realizes that its 11:45 p.m. From the party to his home is about 25 minutes away. He leaves with a rush without bidding farewell to his fellow partygoers…

Now, let’s imagine a second family with also a husband, wife and two small children. Molly and Peter are the parents, and their two small children are Sam and Patty. Peter had to work the late shift again for the third time that week. With midnight approaching fast he can’t wait to get home and sleep. Knowing he is just really tired he drives cautiously home…

Peter is approaching a red traffic light and wishes it turned green once he gets even closer. His pillow is starting to yell his name even louder. Bobby is approaching the same intersection. His light turns yellow and then red but does not see another vehicle approaching the intersection. He can’t afford having his parents upset with him for being late so he speeds up to take the red light. Peter unfortunately also crosses the intersection at the same time. Bobby hits Peter on the driver side killing Peter almost instantly.

Jan and Bill, Bobby’s parents, only have 20/40/15 Texas minimum liability limits. $20,000 for bodily injury to another person, no more than $40,000 per accident, and $15,000 for property damages. Just a quick lesson, bodily injury is injury of any kind or death of the other person you hit. Now, don’t you agree that Peter’s life was worth more than $20,000? Peter’s earning potential is an easy $1,000,000. Molly then files suit on Jan and Bill for $1,000,000 since she thinks $20,000 is not sufficient for her husband’s life

In the situation above it is clear that Jan and Bill were not prepared for such a large liability loss. Now they have to worry about their assets in the suit that was brought up against them. If only they would have considered a personal umbrella policy which is really inexpensive to be prepared. That would have made a world of difference.

***Other situations to consider: A guest in your home falls and hurts himself or herself or a guest drowns in your pool.

Tuesday, September 05, 2006

Homeowners Insurance Statistics guide by Mansi gupta

Homeowners insurance is the ideal way to protect one of your lifetime investments, your house and also the pricey things kept in it. By purchasing this policy you insure your house and possessions against several threats such as natural disasters, theft etc.
While purchasing a homeowners insurance the first issue of extreme concern is the amount of coverage you want. A recent survey conducted by the Insurance Information Institute revealed that two-thirds of all homes in America were underinsured by an average of 27%. Thus it is important to opt for a right amount of coverage.
If you are finding it difficult to calculate the extent of coverage you want, there are several ways to do it. For instance if you want coverage for reconstruction of your house then multiply the square foot of your home by the local building cost per square foot. To know the cost of rebuilding your house, also known as dwelling coverage, you can take the help of any local insurance or real estate agent.
For instance in Nevada an average of 1268 square foot home that was built in 1997 has a current dwelling coverage of $81000. However if the homeowners feel that they are underinsured by 27% and increased their coverage to $110,000, the monthly payment will increase by $7.50 per month.
Since most often the homeowners insurance also compensates for personal liability, you should also keep in mind how much coverage you require for certain legal expenses, medical expenditure or injury to any member of the house.
Though a standard homeowners policy comes with liability coverage of worth $100,000, insurance professionals usually advise to get of coverage of around $300,000 to $500,000 as liability coverage. To have this extra amount added to your standard homeowners policy, purchasing an endorsement is a wise idea.
You can also go for personal umbrella coverage in case the worth of your assets is more than $300,000 to $500,000. The umbrella cover is extremely useful once you are through with your homeowners or automobiles coverage. For instance if your colleague is injured at your house and revengefully sues you for $500,000, your homeowners insurance will cover for $300,000 and get exhausted but the amount left will be easily covered by the umbrella coverage.
For insuring your household things there are three ways. First is the actual cash value in which the policy pays for replacing your personal property using the method that is based on replacement cost of the thing minus the depreciation?
Second is the replacement cost strategy where you receive current amount for the thing you lost in any of the covered dangers. Though this way requires you to pay an additional premium but it can prove extremely beneficial in the long run.
The third option is the guaranteed replacement cost. This coverage means that there is no maximum payout applied to coverage of your insured personal possessions. You need to pay an extra premium but on the same hand increase your deductible to make the coverage somewhat cost-effective. Similarly the structure of our house is also to be insured in these three ways but with slight variation.
According to current facts and statistics presented by National Association of Insurance Commissioners in 2002 the average expenditure on homeowners insurance increased by 12% from $593 to $668 in 2003. Expenditure varies with the state. For example in 2003 Texas witnessed the highest average expenditure of $1328, in Oregon it was $461, Delaware $442 and Maine $462.

About the Author
Mansi gupta recommends that you visit Homeowners Insurance Statistics for more information.

General Liability Insurance by Steve Valentino


In the modern society, a small accident can result in protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes a necessity for most companies. General liability insurance protects a company's assets when it is facing a lawsuit for damages it may or may not have inflicted upon a person though injury or property damage.

General liability insurance can be bought independently or as part of a BOP (Business Owners Policy). A Business Owners Policy packs liability and property insurance into a single policy. The liability insurance coverage limits, however, are usually quite low. Businesses needing a greater coverage usually buy liability insurance as an independent policy.

In a general liability insurance policy, legal costs of a business in a covered liability lawsuit have to be paid by the insurer. Covered liability claims include property damage, bodily injury, personal injury and damages from false advertising, also called advertising injury. Insurance companies also cover general and compensatory damages. However, liability insurance policies do not cover punitive damages, as they are deemed punishment for deliberate actions.

General liability insurance policies always declare a maximum amount that insurers have to give during the policy period. Under the policy, there is also a maximum amount that the insurer has to pay per occurrence. For example, if a company has a $1.5 million occurrence cap and loses a lawsuit of $2 million; the insurance company is obligated to pay just the $1.5 million; the rest has to be paid by the business company.

As a cover against these types of circumstances, companies buy umbrella liability insurance, which comes into the picture where general liability coverage stops. It covers payments that go beyond the company's policy's limits and gives extra protection for liabilities not covered in the standard insurance policy.

Generally, there is a requirement for the policyholders to report to the insurance company as soon as an accident that can lead to a liability claim has taken place. The business owner will then have to help in the investigations, forward legal notices, etc.


About the Author
Liability Insurance provides detailed information on Liability Insurance, General Liability Insurance, Professional Liability Insurance, Pollution Liability Insurance and more. Liability Insurance is affliated with Short Term Disability Insurance.

Monday, August 28, 2006

Texas Personal Umbrella Policy, What is it?

Now a day, the word lawsuit scares most of us, and quite frankly it should. We expect that our homeowners or auto insurance to protect us in the event of a liability lawsuit. When suddenly there is an unfortunate event where we realize that there is not enough coverage. So if you are getting sued like a millionaire, doesn't mean that you have to be one. Do you want to have every thing you own and accumulated all your life to be gone with just one strike from the judge’s gavel?

Personal umbrella policies are liability insurance contracts that pay a third party because of damage and injury caused by you. Generally speaking the personal umbrella policy coverage “stacks” on top of underlying policies. These policies include:

  • Auto
  • Homeowners
  • Boat
  • Condo
  • Renters
  • Mobile homes

The bigger and most well known companies offer the personal umbrella policy, commonly known as a PUP. Please be advised that you cannot go to an insurance company and say, "Yes, I would like a PUP" without having some of the policies mentioned previously above. Every company is different but coverage extends from $1 million dollars to $5 millions dollars. Personal Umbrella Policies are very inexpensive and start out at a minimum of $200 a year. I am pretty sure that the math is quite obvious. The coverage of the PUP does not kick in until the underlying policies’ liability limits have been exhausted.

So let me leave you with this analogy to help better understand what the Texas personal umbrella policy does for someone:

It might not happen here in Texas, but it's a horrible rainy day and to prevent from getting soaked, you wear your rain boots, raincoat, and an umbrella. As it pours down even more you become concerned that your rain gear might not be enough to keep you dry. In the distance you notice an umbrella the size of a two-story building. As a precautionary decision you walk over and stand under this huge umbrella and you feel comfortable and content that the chances of your getting wet has decreased significantly. So there you are under this huge umbrella, still under your own personal umbrella, with your raincoat, and rain boots. With this much coverage you are sure that not one drop can fall on your clothes, and that people is coverage.

One thing that I should mention is that NOT everyone needs a personal umbrella policy.