Most of what you love in life is right there under your roof -- your family and your belongings. Insurance is an easy and affordable way protect you financially from unexpected misfortune. Consider the following:
- Homeowner's or renter's insurance, which protects the value of your belongings against physical damage and theft, and
- Umbrella Liability insurance, which covers you against lawsuits that may not be covered by your homeowner's, renter's or auto policy.
Things you should know about Homeowner's Insurance:
You may not have enough coverage
A homeowner's/renter's policy provides two basic types of insurance - property coverage and liability coverage. As your children grow older, they may acquire possessions whose full value isn't covered in a standard policy -- like a valuable stamp collection, for example. You should double-check your policy for special limits or exclusions on specific items and consider buying additional coverage in policy riders if necessary.
You should also consider increasing your liability coverage. You could be sued for extensive damages if an accident happened to someone else because of your minor child's negligence, inside your house or elsewhere.
Your policy may provide some coverage to in-home care givers
Some homeowner's policies provide workers compensation benefits for in-home caregivers who may be injured while working for you. Most policies do not provide this coverage, however, so you may want to consider buying it separately.
Things you should know about Umbrella Liability Insurance
Your children...your liability
Children bring greater joy into your life .. and greater liability. You are liable for your minor children's actions, and it is important to be prepared by having adequate insurance. If you're successfully sued on the grounds that your child's negligence caused harm to someone else, your personal assets could be seized to cover any damages that exceed your liability policy limit. You can easily expand the liability coverage you already have in your home and auto insurance policies by purchasing a personal umbrella liability policy. An umbrella policy may also provide liability coverage for claims not usually covered in auto and homeowners policies, such as libel, slander, defamation of character, invasion of privacy, etc.
You need to understand your current liability coverage
The first step is to determine if you are adequately covered, by finding out how much liability coverage you currently have under your homeowner's/renter's and auto policies. Many insurers require you to carry minimum levels of liability coverage in your existing policies, before they will sell you an umbrella policy. Once you understand your current situation, you can better anticipate your future needs.