Umbrella insurance policy

Discussion in 'The Pub' started by French Fry, May 6, 2013.

  1. French Fry

    French Fry Member

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    Really not looking to insure my future earnings.
    I'm looking to make sure I'm covered if some TGP'er injures himself on my rental property!
     
  2. Valus

    Valus Member

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    Sure you are. Insurance is just a financing mechanism, in this case in the event of a claim against you. If you didn't have insurance you'd be satisfying the judgment with your garnished wages!
     
  3. French Fry

    French Fry Member

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    Well, yes of course. But my insurance company has not asked for any income qualifications.
     
  4. taco-man

    taco-man Supporting Member

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    Yes, garnishment is what I was alluding to when I mentioned future earnings.
     
  5. Backporch Guy

    Backporch Guy Member

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    A true umbrella policy is excess coverage over and above the underlying limits on your homeowners, Auto and any other liability coverage you may have. It's cheap, generally because it only comes into play after the underlying limits have been exhausted. If your are purchasing the condo as an investment in rental property, it makes good sense to protect yourself to the fullest extent possible. people who get injured on their landlord's property tend to sue for large amounts, and lwayers tend to sue everyone who had anything to do with the property. Your interest in your particular unit is separate form the condo owner's association's interest (although you will probably have to be a member fo the association as well.) The Association will purchase sufficient coverag to cover its interests, and you should, too. In fact, if you read the association by- laws, they will probably require to carry a minimum of $1 million.
     
  6. Blindspot

    Blindspot Member

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    Now that's better....
     
  7. wilerty

    wilerty Member

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    You live in Nevada, the condo is in Colorado, and you rent it to a family from New York. The first night there, the adults go out and the teenage kids throw a party and a teenage girl from Utah gets drunk there and falls off the balcony and dies. You'll be glad you have the insurance and wish you had put the condo in an LLC.

    Use a good lawyer to review any rental agreements.
     
  8. Macentropist

    Macentropist Sliver supporting member sans tweezers Silver Supporting Member

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    General Liability insurance is much more of a safety net than all the above posts mention. It is meant to supercede any other insurance you have, and is typically based on your current net worth, as a protector of said net worth. It is also very viable for small and large business's alike, as it provides adequate insurance coverage for many business operations that require it.

    An example, i do IT services, which on occasion, brings me to "Union only" establishments inside the loop in downtown Chicago. I cannot so much as touch an ethernet cable unless i provide my companies General Liability insurance proof to building management. If i burn down the building, i am only liable up to the amount above of my general liability insurance!

    I also do financial consulting, and again, i am only liable for the amount above my general liability umbrella, should someone sue me.

    If i go to a gig with my '64 Deluxe Reverb, and a power tube arc's, and catches a curtain on fire, i am covered to my umbrella limit.

    A 1 million dollar umbrella policy is really a starting point for anyone, even you. Most underwriters will not write umbrella policies of less than 1 million. It is usually about a ben franklin a year for someone with a good fico score, and no insurance claims in the past seven years.

    As your net protectable worth grows over time, upgrading to 2 million, or even 5 million, is just a prudent practice. It is not uncommon to have a 10 million dollar umbrella policy, and the cost is really very inexpensive provided you have a decent credit score, and no claims. It also varies highly on cost, based on deductibles that are associated with the policy, as with any other insurance.

    I have been paying State Farm for an umbrella policy for twenty plus years, it has increased in coverage amount twice in that period, it is still very inexpensive, and i have never needed it. I sleep well at night.
     
  9. StratGuy22

    StratGuy22 Senior Member

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    If the entire family is killed, there's no one left to sue you.


    :idea
     
  10. Valus

    Valus Member

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    I just wanted to clarify that the limits of your insurance coverage do not set the limits of your liability. Unless you have a contract limiting your liability, you can be sued for amounts exceeding your coverage. Insurance is a financing mechanism only.
     

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