What is a Flood?

Posted on May 16, 2012 by aamberg

In simple terms, a flood is an excess of water on land that is normally dry.  Here is the official definition used by the National Flood Insurance Program:  

A flood is “A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more  properties (at least one of which is your property) from: 

  • Overflow of inland or tidal waters;
  • Unusual and rapid acumulation or runoff of surface waters from any source;
  • Mudflow*; or
  • Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined  above.” 

*Mudflow is defined as “A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water…” 

For more details about the risks of flooding, flood preparedness, and flood insurance, go to http://www.fema.gov/hazard/flood/index.shtm or http://www.fema.gov/about/programs/nfip/index.shtm

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What IS covered by flood insurance? and what is not…

Posted on May 16, 2012 by aamberg

Generally, physical damage to your building or personal property “directly” caused by a flood is covered by your flood insurance policy.  For example, damages caused by a sewer backup are covered if the backup is a direct result of flooding.  However, if the backup is caused by some other problem, the damages are not covered. 

The following lists will provide general guidance on items covered and not covered by flood insurance.  Always refer to your flood policy for the complete list and details.

What is insured under Building Property coverage?

  • The insured building and its foundation.
  • The electrical and plumbing systems.
  • Central air conditioning equipment, furnaces, and water heaters.
  • Refrigerators, cooking stoves, and built-in appliances such as dishwashers.
  • Permanently installed carpeting over an unfinished floor.
  • Permanently installed paneling, wallboard, bookcases and cabinets.
  • Windows blinds.
  • Detached garages (up to 10 percent of Building Property coverage).  Detached buildings (other than garages) require a separate Building Property policy.
  • Debris removal.

 What is insured under Personal Property coverage?

  • Personal belongings such as clothing, furniture, and electronic equipment.
  • Curtains.
  • Portable and window air conditioners.
  • Portable microwave ovens and portable dishwashers.
  • Carpets not included in building coverage (see above).
  • Clothes washers and dryers.
  • Food freezers and the food in them.
  • Certain valuable items such as original artwork and furs (up to $2,500).

What IS NOT insured by either Building Property or Personal Property coverage?

  • Damage caused by moisture, mildew or mold that could have been avoided by the property owner.
  • Currency, precious metals, and valuable papers such as stock certificates.
  • Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools.
  • Living expenses such as temporary housing.
  • Financial losses caused by business interruption or loss of use of insured property.
  • Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy).

For more details about the risks of flooding, flood preparedness, and flood insurance, go to http://www.fema.gov/hazard/flood/index.shtm or http://www.fema.gov/about/programs/nfip/index.shtm

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Flood Preparedness – How Ready Are You?

Posted on February 14, 2012 by aamberg

Charlotte County, Florida - Flood Warning System

Charlotte County, Florida Residents should tune to TV and radio weather broadcasts and be alert to special local advisories.  Local radio and TV stations will carry advisories for our area:

Radio

  • WKII (AM 1070)
  • WCCF (AM 1580)
  • WENG (AM 1530)
  • WGCU (FM 90.1)
  • WIKX (FM 92.9)
  • WCVU (FM 104.9)

Television

  • WBBH Channel 20 (Cable Channel 2)
  • WINK Channel 11 (Cable Channel 5)
  • WFTX Channel 36 (Cable Channel 4)
  • WZVN Channel 26 (Cable Channel 7)
  • SNN Channel 6 (Cable)
  • WWSB Channel 40

The Office of Emergency Management (OEM) maintains contact with the National WeatherService and National Hurricane Center and relays updates of threatening weather to government, media, hospitals, and nursing homes. The OEM can override the cable broadcast system to provide the public with information on storms, flood watches, and flood warnings. Law enforcement and fire-rescue officials have the ability to deliver flood warning messages if a storm develops at night with no opportunity for prior warning to the public.  Another source of information is the NOAA Weather Radio.  Flood watches and warnings will be broadcast on these radios as soon asthey are issued by the National Weather Service.

Evacuation routes are identified in the telephone directory.  Assistance in evacuation can be arranged for eligible parties by registering with the Office of Emergency Management. Call 833-4000 for information on the Special Needs Program.

Flood Safety

Because of low land elevations and the high water tables over much of our area, flooding is likely to occur in some areas during summer rain showers and thunderstorms. The canal network and drainage ditches will alleviate some flooding affects.  However, if there is too much rain for them to handle, flooding will occur throughout the county.

Protective Actions to Take Before, During and After Flooding:

Preparatory Stage:

Consider purchasing flood insurance for your home and your belongings.  For further information, contact your insurance agent.  Homeowners insurance policies do not cover damage due to rising water.  

  1. Keep a stock of food that does not need to be cooked.
  2. Keep a manual can opener and a stock of paper goods.
  3. Keep at least one gallon of fresh water per person, per day.
  4. Keep emergency cash on hand in a secure place.
  5. Keep a first aid kit available.
  6. Keep your vehicle fueled.
  7. Keep a working flashlight, radio and other communications equipment available, with new batteries for each.
  8. Keep all important documents together in a safe, waterproof location.
  9. Itemize and take photos of your possessions, and store them in a safe, waterproof location.
  10. Tune the radio, television, or NOAA weather radio in to get the most current information on the situation.
  11. Obey warnings from officials. 
  12. Evacuate when notice is issued.
  13. Know where to evacuate to.
  14. Know what supplies to take with you.
  15. Shut off electricity and water to your house prior to leaving.
  16. Be cautious and avoid flood prone areas when leaving.

During Flood Stage:

1.    Stay on higher ground.
2.    Do not drive on flooded roads.  Even though you may think it is safe to drive, you may strand yourself if your vehicle stalls. DO NOT drive around barricades.  Driving through water increases the amount of water pushed into people’s homes.
3.    If your vehicle stalls, abandon it immediately and seek higher ground.  It can be replaced – Your life cannot.
4.    Don’t attempt to wade across any moving water that is higher than your knees.

After the Flood Stage

1.    Do not eat fresh food that has come into contact with flood water.
2.    Drink only bottled water.
3.    Stay away from disaster areas. You will only hamper rescue and recovery efforts.
4.    Do not handle live electrical equipment.
5.    Report downed power lines to law enforcement or to the power company.
6.    Stay tuned to your portable radio for additional information on the situation.

Flood Insurance

Flooding is not covered by normal homeowners insurance. You can protect your home and its contents from flood loss through the National Flood Insurance Program.  Contact any licensed property or casualty broker for more information.  The Port Charlotte, Punta Gorda, and Englewood Public Libraries have a list of local brokers and agents known to be Program participants.  Additional information on personal and property flood protection can be found at these locations.

INSURANCE AVAILABILITY

FOR BUILDINGS    FOR CONTENTS

• Single Family            • Residential
• Mobile Homes          • Small Business*
• Small Business*        • Other Structures
• Other Structures

*Check with your insurance agent to see if you qualify.

Flood Insurance Facts

• Flood insurance is available for most enclosed buildings, including contents.  This includes homes, condominiums, mobile homes on foundations, businesses, and farms.  The contents of a rental unit are also insurable.

• There is a 30-day waiting period from the policy purchase date until coverage begins with a few exceptions.  One such exception is that coverage becomes effective immediately at the time of a house title transfer.  Also, special rules apply to repair of substantially damaged structures, including those with more than 50% damage, or who have made improvements to their home which exceed 50% of the structural value of the home.

• Flood insurance is necessary to obtain federally secured loans to buy, build, or renovate a structure located in a flood hazard area. This includes federal grants, FHA, and VA loans, as well as most conventional mortgage loans.

• Check to See If Your Property is Within A Designated Flood Hazard Area. Do this even if you do not (or did not) require a mortgage loan to purchase your house or business.  To protect yourself, purchase flood insurance if your property is in a designated flood hazard area.

If your home receives flood water damage, whether or not you purchased flood insurance is important.  The type and amount of federal disaster assistance available to you can be severely reduced if you are not insured.

Propery Protection Measures

In some locations, contents can be protected through flood proofing measures such as sandbagging.  Portable property can also be elevated above anticipated flood levels. You can also take certain actions to retrofit your home to protect it from wind and water damage.  All General Contractors registered in Charlotte County are capable of retrofitting your home or business – Find a Contractor.  Visit the Port Charlotte, Punta Gorda, and Englewood Libraries for more information on this subject.

Further information can also be found at the web site for the Federal Emergency Management Agency.  Under the “Flood plain Management” heading, there are several resources on how you can protect your property.

Development in Flood Prone Lands is Restricted

Charlotte County and the City of Punta Gorda have special requirements concerning all forms of construction in flood hazard areas. For further information call:

County:  Building Dept.- 743-1201
                  Zoning Dept. – 743-1240

City:        Building Dept.- 575-3346
                  Zoning Dept. – 575-3324

Drainage Systems Require Maintenance

Charlotte County is interlaced with a system of canals,ditches, and waterways that serve to direct the flow of floodwater.  It is most important that these elements of the floodwater drainage system be kept clear of debris and trash that could impede the flow of water in a flooding situation.  Dumping of debris and trash in the drainage system or alteration of the channels is prohibited.  Violators should be reported to law enforcement or public works officials.

Charlotte County Sheriff’s Office:   639-2101
Charlotte County Public Works:     575-3600
Punta Gorda Police Department:   639-4111
Punta Gorda Public Works:             575-5050

Natural and Beneficial Function

In Charlotte County, water drains naturally into Charlotte Harbor and the Gulf of Mexico. This natural flow of water is important, for if it is impeded or disturbed, flooding  may occur in areas where runoff water cannot drain properly.  Impeding water flow can also disturb wildlife and environmental interests in streams and estuaries, such as those found in Charlotte Harbor.  It is important that citizens and businesses take this into account during development of property and maintenance of drainage systems.  Consult with local planning and zoning officials for information on protecting the natural and beneficial functions of the floodplain in Charlotte County.

Terms You Should Know

  • Coastal Flood Watch - An alert to expect wind-forced flooding along low-lying coastal areas if weather patterns develop as forecasted.
  • Coastal Flood Warning – A warning of imminent, wind-forcedflooding along coastal areas.
  • Flood Warning -A warning that gives the expected severity of flooding (minor, moderate, or major) and where and when flooding will take place.
  • Hurricane Watch - Notice of potential hurricane conditions; it does not mean that they are imminent.
  • Hurricane Warning – Notice of imminent hurricane conditions. Personal and property protection actions should be taken.
  • Tropical Storm Watch – An announcement that tropical storm conditions pose a potential threat to specific coastal areas.
  • Tropical Storm Warning – A warning of tropical storm conditions with possible sustained winds of 39-73m.p.h. in specific coastal areas within 24 hours.
  • FIRM – Flood Insurance Rate Map
  • 50% Rule -A building in the flood hazard area having damage, from any cause, that exceeds 50% of its market value must meet current flood zone construction codes before construction will be permitted.
  • NFIP – National Flood Insurance Program

If you live outside of the Charlotte County, Florida area, be sure to check with your local Emergency Management Office in your town, city or county for specific flood preparedness instructions.

Posted in Business Insurance, Disaster Preparedness, Flood, General, HomeOwners Insurance, Hometown News, Renter's, safety, Uncategorized | Leave a comment

FLOOD INSURANCE vs. Federal Disaster Assistance

Posted on September 19, 2011 by aamberg

Again, we want to urge you to be aware of the benefits of purchasing a flood insurance policy. Certainly, the recent storms across the country show how tragic and financially devastating a flood can be to lives and homes. Flood insurance is the best way to protect you and your family from flood loss. Sometimes people tell us that they resist purchasing flood insurance because they believe that they will be eligible for disaster assistance should their homes become flooded.

A National Flood Insurance Program (NFIP) publication provides a comparison between Flood Insurance and Disaster Assistance.  Here are the facts:

FLOOD INSURANCE VS.  DISASTER ASSISTANCE

The insured is in control.  Flood insurance claims are paid even if a disaster is not declared by the President.

Most forms of federal disaster assistance require a Presidential declaration.

Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas.

Federal disaster assistance declarations are not awarded in all flood incidents.

There is no payback requirement.

The most typical form of disaster assistance is a loan that must be repaid with interest.

Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses.

The duration of a Small Business Administration (SBA) disaster home loan could extend to 30 years.

Flood insurance reimburses you for all covered building losses up to $250,000 and $500,000 for businesses.  Contents coverage is also available up to $100,000 for homeowners and $500,000 for businesses.

The average Individuals and Households Program awarded for Presidential disaster declarations related to flooding in 2008 was less than $4,000.

The average cost of a flood insurance policy is a little more than $500 annually.  The cost of a preferred risk policy is less than $300 annually, depending on where you live.

Repayment on a $50,000 SBA disaster home loan is $340 a month or $3,880 annually at 4% interest.

You can get further information, request a flood quote or verify these facts at http://www.fema.gov/business/nfip/ or http://www.floodsmart.gov/floodsmart/

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Hurricane Preparation Information

Posted on August 25, 2011 by aamberg

The National Flood Insurance Program (NFIP) has developed a number of resources that can help you communicate with residents about preparing for and recovering from a hurricane.

FEMA’s National Flood Insurance Program and the FloodSmart Campaign also offer helpful tips on what to do to prepare before a flood. We encourage you to share this information with residents of your community.

1. Safeguard your possessions.

  • Create a personal flood file containing information about all your valuable possessions and keep it in a secure place, such as a safe deposit box or waterproof container. This file should include:
    • A copy of your insurance policies with your agents’ contact information.
    • A household inventory: For insurance purposes, be sure to keep a written and visual (i.e., videotaped or photographed) record of all major household items and valuables, even those stored in basements, attics or garages. Create files that include serial numbers and store receipts for major appliances and electronics. Have jewelry and artwork appraised. These documents are critically important when filing insurance claims. For more information visit www.knowyourstuff.org.
    • Copies of all other critical documents, including finance records or receipts of major purchases.

2. Prepare your house.

  • Inspect your sump pump. If you have a sump pump, make sure it’s working and then install a battery-operated backup, in case of a power failure. Installing a water alarm will also let you know if water is accumulating in your basement.
  • Clear debris from gutters and downspouts.
  • Anchor fuel tanks.
  • Raise your electrical components (switches, sockets, circuit breakers, and wiring) at least 12 inches above your home’s projected flood elevation.
  • Place the furnace, water heater, washer, and dryer on cement blocks at least 12 inches above the projected flood elevation.
  • Move furniture, valuables, and important documents to a safe place.

3. Develop a family emergency plan.

  • Create a safety kit with drinking water, canned food, first aid, blankets, a radio, and a flashlight.
  • Post emergency telephone numbers by the phone and teach your children how to dial 911.
  • Plan and practice a flood evacuation route with your family. Know safe routes from home, work, and school that are on higher ground.
  • Ask an out-of-state relative or friend to be your emergency family contact.
  • Have a plan to protect your pets.

We also hope you are also taking this time to prepare your family and business from the potential impact of the storm.

Please email us at info@femafloodsmart.com with any questions about NFIP and FloodSmart.

Stay safe,
The FloodSmart Team

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Peak Hurricane Season is Here!

Posted on August 17, 2011 by aamberg

The height of the 2011 Hurricane Season is here, which means a significant risk of flooding in both coastal communities and those far inland as well. In fact, some of the worst damage from recent hurricanes occurred hundreds or even thousands of miles from the coast—as far as New York state due to Hurricane Ivan in 2004 and through much of the Midwest and into Pennsylvania because of Hurricane Ike in 2008. While you may not be aware of the risk until your community is threatened with an impending storm, you need to know now that there is typically a 30-day waiting period for a flood insurance policy to take effect!

We encourage you to get covered now!  Flood insurance is more affordable than you may think. The average flood insurance policy is around $579 a year and in moderate-to-low-risk areas, Preferred Risk Policies start as low as $129 a year.

Costly Consequences

Eight of the top ten most expensive federally declared disasters were caused by hurricanes. Just a few inches of water can cause tens of thousands of dollars of damage and last year, the average individual flood insurance claim was more than $24,000. Without flood insurance protection, many property owners have to absorb the financial losses on their own, potentially draining their savings.

Visit FloodSmart.gov to find essential information and tools that will help you prepare for the dangers of flooding all year long.  The following are some of the great information sources you can find there:

  • Cost-of-Flooding Tool:  This gves you an estimate of how much you will have to pay to repair your properties based on various levels of flooding.
  • Levee Simulator: Demonstrates how levees work and the risks home and business owners face when they fail.

While many are motivated to purchase flood policies when flooding dangers are top of mind, too many allow their policies to lapse when they believe the threat has passed.  Don’t let this be your state of mind!  Get the facts, stay informed and be prepared!

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Feathering the Nest? Update Your Insurance

Posted on August 16, 2011 by Pat Amberg
Consumers spend billions on their homes. Home improvement projects tallied to a whopping $280 billion in 2005, according to research from the Joint Center for Housing Studies at Harvard University. The center forecasts that home renovations will grow at a steady 3.7% rate annually through 2015, after inflation.

What shouldn’t be lost in the excitement of adding a bedroom, finishing a basement or updating the kitchen is your financial security. The risk management and insurance tools available through your Trusted Choice® insurance agent are indispensable when you’re renovating.

Be aware that home renovations add to the risks you’re facing as a homeowner, including injuries to family, contractors and delivery workers; fire, theft, and vandalism; and water damage. What’s more, know that you must protect yourself from financial liability for anything that goes wrong.

It’s imperative that your homeowners and umbrella insurance coverages are set up correctly before, during and after your renovation project. The time and paperwork required may seem a distraction when you’re eager to upgrade an older home, install an energy efficiency retrofit, or renovate a rental property. But it’s every bit as important as buying the building materials or choosing the contractor.

Before renovations start: Require contractors to provide proof of insurance for workers compensation and liability coverages. Your insurance agent can guide you on how to do this and what to ask the contractor to provide.

Workers compensation insurance pays for medical and rehabilitation expenses (and covers lost wages) if workers are hurt on the job. Workers who are injured in your home can sue you or claim damages from you if the contractor they work for does not have adequate coverage. (By default your homeowners and umbrella liability policies can become their insurance coverage, an unwelcome development for those who pay the premiums and do the claims paperwork.)

If you need to move out during construction, notify your agent so you can be certain that you have proper coverage for a temporary residence such as a hotel or rented home.

Recognize that building code upgrades and market changes may change the standard to which your renovated home is held. For example, home alarm systems have become popular, so you may wish to add one during your renovations. It may add to the renovation cost, but can make your home safer and earn a homeowners insurance discount. Such decisions are generally best considered before the project starts.

During construction: With the added risks—such as construction accidents, fires due to power tools and open utility lines, and strangers in the house who may be tempted to steal your property or your identity—you may want to consider temporarily increasing homeowners and/or umbrella policy limits and/or changing the deductible.

After the project is finished: Home improvements can increase the market value and replacement cost of your home. Your agent can guide you to proper insurance coverage levels for homeowners and umbrella policies. At that time, you may want to also ask about guaranteed replacement cost coverage for your homeowners policy.

The renovated or expanded space in your home may fill up with new furniture, exercise equipment, electronics, and appliances. Track those purchases with receipts and a written or electronic home inventory. Additionally, check the coverage in your homeowners policy for personal property (home possessions).

Talk to your Trusted Choice® agent to be sure your home is properly insured at all stages of a home renovation project.

We are a Trusted Choice® agency and represent multiple insurance companies, so we offer you a variety of personal and business coverage choices that can  be customized to meet your specialized needs.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Let’s Take A Look At Boat Insurance Coverage

Posted on August 8, 2011 by Pat Amberg

Boat insurance is an important type of coverage, as boats can be quite expensive. You wouldn’t drive a car without insurance, and it’s a bad idea to drive a boat without appropriate coverage.

Many different types of boat insurance are available for different types of crafts. For instance, major insurance companies will often offer sailboat insurance, jet ski insurance, and even rowboat insurance. The major differences in these plans are often their cost; riskier craft come with a higher cost. Speed boats and jet skis often carry the highest boat insurance premiums. The number of individuals that can ride on your boat will also affect your premiums, and many other factors will also be at play, including the lake that the boat is stored on and your age. An insurance agent should be able to tell you about the common factors that go into boat insurance premiums, and this can be very useful information if you’re trying to get lower premiums.

Coverages can provide for repairs to a boat, personal injury coverage, and special add ons for water towing or “roadside” assistance. Deciding on an appropriate amount of coverage can be difficult. It’s generally a good idea to opt for emergency add ons and to buy personal injury protection (PIP) as well as liability coverages. Check your state’s laws to find out whether certain amounts of boat insurance are required, and again, check with your insurance agent. It may be a good idea to buy total loss coverage, which can cover the cost of your boat if it sinks or if it’s involved in a major accident. An agent should be able to explain this coverage and give you solid feedback on how much coverage that you need to buy.

Always shop around when buying boat insurance, and have as much information about your boat prepared as possible. This will make it easy to compare rates and find a great low cost policy with sufficient coverage. You’ll feel a lot safer when you’re on the water with the right boat insurance coverage–don’t wait to buy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

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The Special Risks of Hurricanes and Floods

Posted on August 1, 2011 by Pat Amberg

The end of summer seems to be peak time for natural disasters. Often, Labor Day weekend newscasts include stories about a hurricane, flood, tornado or wildfire happening somewhere in the United States.

Those who are dealing with the crises created by natural disaster need more than news coverage—they need insurance coverage. There are significant risks presented by natural disasters, which not only threaten homes and businesses but also endanger the health and lives of people in their paths.

Nowhere is the value of insurance more apparent than with natural disasters. But consumers must make decisions on important issues in order to insure their homes and possessions from the financial risk of hurricanes and floods:

Hurricane deductibles. June through November is hurricane season in the United States. Many remember the disastrous 2005 hurricane season in the south, when insurance companies paid an estimated $41 billon for 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, according to the Insurance Information Institute. The Katrina disaster, combined with Hurricanes Rita, Wilma and Dennis, led to more than $57 billion of insured losses and 3.3 million insurance claims.

In recent years, insurance carriers have begun requiring homeowners to have a “hurricane deductible” where permitted by state insurance law. Designed to help insurers manage the significant financial risk they carry when paying thousands of claims in one geographic area, hurricane deductibles apply to damage solely from hurricanes.

Hurricane deductibles range from one to 5% of a home’s insured value. Coastal areas may be higher. The deductible is “triggered” based on the circumstances stated in the homeowners insurance policy language. For example, a 2% hurricane deductible for a home valued at $200,000 means that the homeowner would pay the first $4000 (2% x $200,000) of damage from a hurricane.

Like most insurance coverage, premiums are higher with a lower deductible. Policyholders may have the option of a traditional dollar deductible (such as $500 or $1000) in some states, although that’s not typically offered in higher-risk coastal areas.

Flood insurance. Flood damage is specifically excluded by homeowners and renters insurance policies. Flood insurance coverage, though, is available through independent insurance agents as a separate policy from the National Flood Insurance Program (NFIP), a federal insurance mechanism. In the 1960s, taxpayers often had to “bail out” flood victims, and Congress created the NFIP to make flood insurance available in communities that adopted floodplain management laws to reduce flood damage.

Today, NFIP insurance covers up to $250,000 for the structure of a residential property and $100,000 for contents. Premiums start at $348 for that coverage for a residential property and its  contents. Some insurance carriers offer additional flood insurance (called “excess coverage”) above the basic policy limits or for people whose communities do not participate in the NFIP.

In 2008, a survey by the Insurance Information Institute found that 17% of Americans have a flood insurance policy. The national flood program reported that the average flood claim amounts to $33,000.

Hurricane deductibles and flood insurance are two insurance decisions that consumers might want to double-check. Contact us. We are a Trusted Choice® insurance agent.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

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What Does Umbrella Insurance Cover?

Posted on July 15, 2011 by Pat Amberg

Perhaps, you have been repairing your outside deck and patio due to the wood becoming old and rotten. You mean to finish this job quickly, but it drags on. One day, you invite a friend over. He wanders onto your deck and falls through it. He badly injures himself and sues you for over one million dollars. You may be wondering what kind of insurance you should buy to protect against situations such as these. The answer is umbrella liability insurance.

It is for extreme situations such as these that umbrella insurance is purchased. Umbrella insurance, however, is not really something designed to be purchased alone. It is designed as more of a way to fill in gaps in existing forms of insurance coverage that an individual may have. You may need Umbrella insurance, for example, if your car insurance can only pay out a certain amount in certain situations. Another situation may present itself when your home insurance can only pay out at a certain rate.

Umbrella insurance acts as a kind of backup insurance to come into play when other forms of coverage a person owns have become exhausted. For example, a person may be sued for $1,200,000. That person may have car insurance that can only pay out $400,000 and home owners insurance that can pay out $250,000. If this person does not have umbrella insurance, that person may end up losing almost all of her possessions. However, with one million dollars worth of umbrella insurance, the amount of coverage may be more appropriate to cover the actual loss amount.

Umbrella insurance doesn’t only fill in the gap for these kinds of policies. It can also be used in many other situations in which a person may be sued for damages. The reason it is called umbrella insurance is because the kind of coverage it provides is very broad. This is why umbrella insurance is extremely popular with businesses that are at risk of being sued in a multitude of different scenarios.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

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