• Coverage for injuries which may be
experienced by young children coming on
to your property due to the existence of an
“attractive nuisance” such as an unguarded
fishing pond or pool;
lenders have the ability to require you to do so
independently. If a residence is located near
a flood plain as mapped out by FEMA, then
flood insurance coverage may be mandatory as
a condition to purchase/inhabit the residence.
• Coverage for changes to building ordinances
PERSONAL LINES - UMBRELLA
or laws which will require a modification to
COVERAGE
your home;
Your umbrella policy importantly provides
enhanced levels of coverage over and above the
• Coverage for identity theft and restitution of underlying liability limits in your auto policy.
damages caused by the theft;
It also provides enhanced coverage for your
homeowner’s policy. It will specify the underlying
• Coverage for necessary work to stabilize required limits before the enhanced umbrella
Earth movement on the land surrounding your policy coverages will apply. You should work with
home; and
your insurance agent (or insurance professional
with a direct writer) to secure liability coverage
• Even reimbursement coverage for payment under your auto and homeowner’s policies at the
for any fire department service charges which lowest possible thresholds prior to the umbrella
may be leveled by a municipality or fire district policy coverage becoming applicable. Umbrella
for putting out a fire at your residence!
policy limits are usually available for purchase in
one million dollar coverage increments up to ten
While the above coverages may be welcomed million dollars in extra coverage. You should buy
and unexpected additions to basic coverages enough coverage to protect your personal assets
for your home, there is one coverage which that is within your ability to pay the required
you may believe you have but do not: premiums. While prices and multi-line discounts
vary, you can expect to pay $500 for umbrella
• damages caused by water backing up due coverage of two million dollars in coverage.
to a sump pump failure can (and should) be
purchased, note that generally, the damage By coordinating your personal umbrella policy
caused by infiltration of surface or ground to include enhanced coverages for potential
water is excluded by most personal lines liability claims otherwise covered by your
homeowner’s policies. If this is a concern automobile or homeowner’s policies, you will be
for you, your insurance professional should providing important protections to your personal
assist you in exploring and potentially assets. You should consider using one insurance
purchasing a separate flood insurance policy company for your automobile, homeowners and
from the National Flood Insurance Program, personal umbrella policies. This will help ensure
a federal entity which will provide you with the umbrella p olicy’s required minimum limits
a single peril (flood) policy which covers the for your auto and homeowner’s policies are met
insured residential premises and/or personal and that the coverages work together as they are
property contents within the premises. While designed in the event they are needed, covering
mortgages taken out on homes located in your risks adequately, without duplication. You
moderate to low-risk areas do not typically should also receive a material multi-policy
require the home to have flood insurance, discount, lowering your overall premium costs.
10
Riley Bennett Egloff LLP - June2017