Homeowners Insurance
What should you consider when looking for the right homeowners insurance? Here are some thoughts off the top of my head…
Homeowners face a number of personal liability risks such as:
- Slip and falls (premises), including their own sidewalk if icy or wet
- Liquor liability if guests leave their home after a dinner or party having consumed alcohol
- Liability caused by children (mischief or accident) and animals (dog bites)
- Damage to neighbors house by trees from your property falling
- Injuring someone (ex. wayward golf ball)
- Liability from work on a non-profit board of directors
Umbrella policies are essential for most people. No longer do you need to be a high-income person to have exposure to high damages. The cost of umbrella insurance for just $1,000,000 will range between $150-300 per year based on property and number of vehicles and drivers. Umbrella policies normally require an “underlying personal liability limit” on the homeowners policy of $500,000. The umbrella normally sits first dollar over that underlying limit to cover both your personal and auto liability. People who have higher income levels and more properties and autos to insure should consider higher umbrella limits.
Homeowners should look for policies from A-rated companies (financially strong) that offer discounts for multiple policies (i.e. Auto), good claims history, and increasing deductibles. They should be competitively priced (note I didn’t say cheapest) and have local claims representation.
Bottom line - Don’t leave the task of procuring homeowners insurance to chance. Make sure you find a competent agent with upstanding companies to transfer this risk from you!
