Liability
Of course, accidents don’t always happen on the road. On the golf course, you can swing your nine-iron and mistakenly hit your opponent in the head. At a barbecue, your potato salad might make someone sick. In your own backyard, a guest might slip on the edge of your pool.
Most homeowner and renter insurance policies are sold with around $100,000 of liability coverage per occurrence, which kicks in when you’re held responsible for bodily or property damage on or off your property, says Simmonds.
“If you have any personal assets to protect you’ll need to have an umbrella policy,” says Garrett. “Otherwise, they could be at risk if you get sued.” To determine how much umbrella liability you need, round up your net worth, including your home and retirement savings, to the nearest million dollars, she says. Someone with a net worth of $1.3 million should get a $2 million umbrella policy, which costs an average $250 per year in premiums, she says.
Flood
When it comes to bad summer weather, homeowners’ policies cover most damage caused by hurricanes, but it doesn’t cover flood damage.
Typically, homes that require flood insurance are in low-lying areas near the Gulf Coast, the Mississippi River or a smaller river that can overflow. Home buyers will be alerted if they need flood insurance by the bank underwriting their mortgage. They can also contact their local city hall, which should keep track of flood zones.
Flood insurance, which is sold through FEMA’s National Flood Insurance Program, can range from $300 a year for a house with a minimal chance of a flood – say, one sitting on a mountaintop – or up to $10,000 a year if you’re living near a coast in a flood zone, says Simmonds. Read the fine print before signing up to make sure there aren’t any loopholes in your policy, like coverage restrictions based on the location of the damage or the cost of the repair.
Wedding Weather
There’s a reason why June is such a popular month for weddings, and it isn’t the rain, sleet or snow. Still, the weather doesn’t always cooperate.
Some couples try to guarantee the storybook setting by buying weather insurance, which covers costs related to changing your wedding plans in the event of rain, says Simmonds. The price of this insurance is based on historical weather data at your location and date, and it can often cost $2,000 or more, he says. A free alternative: Have a backup plan with your wedding venue to move the reception indoors in case of rain, says Garrett.
Rather interesting. Has few times re-read for this purpose to remember. Thanks for interesting article. Waiting for trackback