Most of us have auto, home, and life insurance, but having protection against a catastrophic liability claim is often overlooked.
Would you have enough coverage if something like this happened to you?
A jury awarded $900,000 to the estate of a 43 – year – old father that died after an auto accident. The award was based in part on the father’s future earning potential.
While helping a friend paint his home, a 40 – year – old man fell and broke his heel. Although the homeowner was found only partially responsible, the fall cost him $1.2 million dollars.
An umbrella policy will provide you with an additional $1 million dollars or more of coverage over and above your underlying homeowner or personal auto limits. It can offer you an extra layer of protection against the possibility of a high jury award in a personal liability case.
It is especially important to purchase this type of policy if you have wages that can be garnished or assets that can be seized to pay a judgement.
It’s an inexpensive policy with extensive benefits! Contact your insurance agent or our office for more details.
It’s time to discuss the years-old debate on rental car insurance. Everyone who has rented a car has been asked to buy the rental companies insurance. Renting cars can be expensive. So naturally, skipping out on the add-ons can be an easy way to lower your costs. And if you have your own car insurance policy, do you really need it?
Here are the facts:
Most full coverage policies extend coverage to non-owned vehicles.
This means when renting a vehicle, your liability, collision, and comprehensive coverages are extended to the rental car. If you are involved in an accident or incur damages to the rental car, you can still file a claim on your policy. This is subject to the same deductibles and limits as your personal vehicle.
If you do file a claim for a rental car, it will show on your driving record, as any and all claims do.
One reason to buy the additional insurance is to avoid having to file a claim on your personal insurance for any damages to the car.
What your personal insurance policy won’t cover on a rental car.
Rental car companies only make money when their cars are out on the road. If you damage one of their vehicles, they are going to lose money for the time it is off the road being repaired. Some companies will attempt to recoup the money they have lost by charging the one who was renting the car when it was damaged. A rental car often will lose value once it has been in an accident, and they can stick the driver of the vehicle with this cost as well. Your personal auto policy does not cover loss of use or diminished value for non-owned cars. If you do plan on purchasing additional rental car insurance, make sure to ask about these add on coverages.
Another helpful add on coverage can be “loss of personal effects” This will often cover you if your personal belongings are stolen while renting a car. If you carry comprehensive coverage on your policy and your rental car is stolen, your insurance policy will pay to replace the stolen car, but not any of your property.
What’s the conclusion?
Some credit cards offer rental car insurance as a benefit. They will offer some of the same additional coverages rental car companies sell, but without cost to the cardholder. Check with the bank that issues your credit card for more details. Some cards may only offer actual cash value for the rental car and not replacement cost. Ensure that your card benefits are comparable with what the rental car company offers before you use it as a substitute.
While you do not always have to purchase additional insurance to rent a car, their policies do offer more than a standard “full coverage policy”. By getting the additional coverage, you are ensuring that you won’t be hit with any additional out of pocket costs if your rental car is damaged.
Always check with your personal insurance agent to find out specifics of your policy and situation.
Thinking about renting out your house? Here are items to
consider.
Buying property here in Central Kentucky can be a very
appealing investment! Rental prices are higher than ever, and there is no
shortage of qualified tenants. Here at Castle insurance we often work with
homeowners who are acquiring additional properties to rent to others. This can
be a great way to create residual passive income through an investment that
will often appreciate. In most cases, a consistent stream of additional income
can help you reach your retirement goals a little easier. We are always excited
to help our customers reach their financial goals, and one way we can do this
is to ensure your rental property is covered.
Before you consider investing in a rental property, there are a few things that must be considered. There are several situations where rental properties can become a serious liability; one that can severely hinder your assets.
First, we recommend that a landlord establish an LLC to ensure their assets are separated from their business operations.
Secondly, ensuring your tenant keeps an up-to-date renters policy will help to protect you from any liability that arises from their actions. For example, if your tenant’s dog bits someone visiting your rental, their renter’s insurance liability will cover damages incurred up to their limits of liability. Without renters insurance, a lawyer may choose to challenge you for the damages, and a costly lawsuit can be devastating for you and your business.
Another great coverage option is a personal or business catastrophe liability policy. This policy is often referred to as a PLUP or umbrella policy and can provide millions in liability coverage for your auto and homeowners policy. While your rental property should be insured as a rental-dwelling, your policy may not contain enough liability coverage to offset a litigious tenant. Even those landlords who are mindful oftenant screening and property upkeep, the unforeseen lawsuit can ruin your ability to run a profitable operation.
In closing, renting property can be a profitable long term
investment. Managing the insurance for this type of business can be confusing,
but you should always understand what you are covered for.
If you rent property here in Kentucky, please contact us for
a comprehensive review of your insurance, and let the expert agents at Castle protect
your assets.
