The Holidays are a great time of year, and it’s always fun to spend time with friends and family. We’ve all been to a Holiday party and maybe even hosted one before. But let’s say the party you host this year ends in disaster. Or suppose a holiday party hosted at your rental home ends in disaster. Everyone is having a good time, but then one of the guests has too much to drink. On their way driving home, they cause an accident and are also charged with a DUI. They then sue you, claiming they were “overserved” at the party. The victim of the accident also sues you, and things are not looking good. Would you have any coverage from your current insurance policies?
YOUR CAR WASN’T INVOLVED, BUT THE EVENT DID TAKE PLACE AT THE PROPERTY YOU OWN.
Your homeowners’ insurance will generally include some liability coverage – but the limits are often $500,000 or less. They may even be as low as $100,000. With lawsuits that could include medical bills, disability, and more, even $500,000 may leave you well short. But there is a way to increase your liability coverage and protect your assets outside of your home and auto coverage – a personal umbrella policy.
Personal umbrella policies, also known as PUPs, can provide additional protection beyond your home and auto policies. And often, an additional $1 million in coverage may cost you just a few hundred dollars per year. While these policies are generally written by the same insurance company that covers your home and auto, there are “standalone” policies available that can be written by different companies. Personal umbrella policies are also available for your vacation rental home or long-term rental home.
If your total assets (home, vehicles, boat, checking, savings, investments, etc.) are over $1 million, you need a policy(or multiple policies) that covers those assets. Higher limit PUPs are available as well, and you should talk to your insurance agent and financial advisor and be sure that you have the coverage you need in place. Not only must you ensure adequate coverage on your primary residence but also on any rental home you own.
Need help with an insurance review? Give us a call at 865.453.1414, and we’ll help you start the process!
*Coverage and claims payments are always subject to the language in your insurance policy. Be sure you discuss it with your agent.