4 Reasons Why You Need Umbrella Insurance

The top priority for all people is to protect their family in addition to assets. This is the reason why insurance exists and also the reason why we have personal umbrella insurance. Personal Umbrella Insurance is an insurance type that is specially designed for the purposes of adding all liability coverage that is above and over other insurance policies, like homeowner’s or auto insurance.

What does Umbrella Insurance cover?

This insurance type is created to aid and protect a person from getting exposure to devastating and stressful liability judgment or claims. Just when a person gets to the wall with his or her underlying liability, it is then that Personal Umbrella Insurance coverage gets put into the play.

Example of liabilities covered by Personal Umbrella Insurance includes property damage, landlord liability, personal injury and bodily injury. On the other hand, oral or written contracts, personal belongings and anything else that has been covered cannot be typically covered by Personal Umbrella Insurance. Private omissions, intentional or even criminal acts are not covered.

Umbrella Insurance

For a better understanding of how the Personal Umbrella Insurance policy functions, this is a good example: If a person is found to be at fault during a car accident, where the other driver has been injured, the person’s regular automobile insurance is expected to cover for the injured driver until a set limit has been agreed upon. If the set limit being insufficient for the coverage of the wounded driver’s medical bills, it becomes another case.

Severe injuries of the driver will make you responsible for the damages as far as the law is concerned. That is if the hospital bill outdoes the agreed amount that you agreed with your car regular automobile insurance. The injured driver that is suing you can cause your assets to be at stake. The situation will be worse if the injured driver was a person of a prominent profession or highly paid and the accident caused him to miss work for a couple of months for six or eight months. He or she can sue you for the months away from work.

Yes, the automobile policy liability will cover only up to the agreed amount. As for the rest of the money, how will you come up with that given that it is a considerable amount? When standard insurance does not cover the whole cost, the additional amount can be covered by a Personal Umbrella Policy. It will include the extra cost to prevent you from getting stuck while figuring out the payment. Personal Umbrella Insurance will help you in protecting your home, bank account and any other personal property that you may have.

Oftentimes, the Personal Umbrella policies are availed in increments of million dollars, starting from $1 – $5 million. For increased protection and coverage in an unfortunate incident of an accident, the umbrella policy will be your savior.

Liabilities that are not covered by a Personal Umbrella Policy

Personal Umbrella Insurance will not typically be cover any cost if one causes damage to his or her own home. It will slightly help you to cover the expenses when you are held accountable for damaging somebody else’s property.

Do you have a question about umbrella insurance? Click here to contact Davco Insurance today!

3 Myths About Renter’s Insurance

For approximately the cost of a pizza delivery each month, renters insurance can protect your personal belongings and save you from legal or medical expenses associated with an accident in your home. However, many renters believe that taking out the insurance is unnecessary or too expensive.

Here are some common misconceptions about renters insurance, along with tips on how to pick the best policy for you:

Myth #1: “I don’t have enough stuff to need insurance coverage.”

Since all rental properties are susceptible to a variety of damages, whether it be fire, theft or even a broken kitchen appliance, many experts say there isn’t a scenario in which a tenant should go without renters insurance. But it is important to weigh the associated costs, both monetary and sentimental.

A common reason individuals avoid renters insurance is they do not think their belongings are worth the coverage. Many renters underestimate the value of their possessions and would be surprised by how much it would cost to replace the items they have accumulated.

If renters think they do not have enough stuff to warrant a renters insurance policy, we suggest they go around their residence, room by room, and take full inventory of their belongings before making a decision.

Along with evaluating how much your belongings cost, it’s important to consider how much you personally value those items. In some situations, how much you care about your belongs may override cost in your decision to take out a renters insurance policy. “For example, if you just got out of college, are renting a furnished apartment, hardly have any stuff and are not a high-risk person in terms of your lifestyle, you might not care, or need to care, about protecting your belongings,” says Robert Hunter, director of insurance for the Consumer Federation of America. “However, if you are renting a penthouse apartment with priceless art on the walls, then you most likely would.”

Myth #2: “Since I am a renter, my landlord will cover property damages.”

Occasionally, a landlord may partner with an insurance company to offer renters insurance to tenants, but more frequently, the insurance policies that landlords hold for their properties only protect the building itself. “After acquiring a rental housing unit, landlords change their insurance policies from a traditional homeowners policy to a rental policy, and when they do that, it only covers just the structure, not the content or any of the tenants belongings,” says James Emory Tungsvik, president of the National Association of Residential Property Managers.

Myth #3: “Renters insurance only covers my personal belongings.”

Accidents, such as a flood in your apartment, may damage other tenants’ property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits.

Do you have a question about renter’s insurance? Click here to contact Davco Insurance today!


Why You Need Life Insurance

Nobody likes talking about life Insurance because it’s a very tiresome and stressful process. With current harsh economic times, having life insurance has become an essential financial element that will be handy in financial planning and security. Many people know the importance of life insurance but tend to procrastinate until a significant event in their life happens. Life insurance has some great advantages especially when the coverage is purchased at an early age.

When you buy life insurance coverage, you are obliged to pay an annual premium. The yearly premium is usually calculated by the insurance company for the entire period when the policy is active.

Why is it important to get a life insurance?

When looking for the best life insurance, fundamental questions tend to pop up. Who will take responsibility for your financial liabilities when you die? The next generation will not only inherit the financial assets but they will also take responsibility for the financial burdens when a relative passes on. What if children are involved when you pass away and you didn’t have life insurance? Your kids and family will be at economic risk. For business owners, the risk is just as high without a life insurance plan. A succession plan could put your business into an operation standstill.

How Much Insurance Coverage Do You Need?

This is a very tricky but fundamental question many are faced with when planning to buy a life insurance. Everyone will have a different answer to this question. After taking into consideration the above variables and your financial situation, you can start calculating your ideal life insurance coverage. Other additional factors taken into account are age, gender (it’s less expensive to insure women than men) and the amount of insurance you can afford. Those with family and more dependents can increase their life insurance amount. Consult with an experienced financial adviser on the best life insurance coverage that will suit you. Considering all the factors is essential before you sign the papers and start paying your annual fees.

Where should you buy a life insurance?

The insurance industry is fascinating. Different insurance companies offer different products. Davco Insurance will give you all the available life insurance options that suit your needs. We will carefully assess your financial situation and then offer you professional guidance on the policy that is the best fit for you.

Additional information should you learn

Life insurance is a massive purchase, which will be a part of you until you pass away. If you had purchased a policy sometime back then, consider reviewing it with Davco Insurance. If there have been tremendous changes in your life (such as getting married, having kids, relocating, etc.), it is advisable that you buy more insurance coverage or letting the old insurance lapse and then purchase a new one.

Do you have a question about life insurance? Click here to contact Davco Insurance today!