Umbrella policies without home ownership (million, increase, dollars, medical)
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So I got to thinking. With today's real estate market the advice is, if at all possible, to sell one home before downsizing and buying a new one. This allows you to offer cash for the purchase, or at least to prove that you are ready to go with a big down payment. But then you are sitting on that cash from the big house for a couple months. How about insurance? Can you actually get an umbrella liability policy when you temporarily don't own a home? How do people handle that, assuming they did not already have such a policy that they could carry over into the "dead" zone? Any ideas?
So I got to thinking. With today's real estate market the advice is, if at all possible, to sell one home before downsizing and buying a new one. This allows you to offer cash for the purchase, or at least to prove that you are ready to go with a big down payment. But then you are sitting on that cash from the big house for a couple months. How about insurance? Can you actually get an umbrella liability policy when you temporarily don't own a home? How do people handle that, assuming they did not already have such a policy that they could carry over into the "dead" zone? Any ideas?
I buy umbrella insurance to increase the limits on my car insurance. It also increases the liability limits on my home as well.
As long as you own cars, you can have an umbrella policy. I would check with your insurance agent for exact details of the coverage provided.
Since you talk about having your home sold, I'm trying to understand exactly what risk(s) you are trying to insure against. Perhaps, you could elaborate a bit on that.
I buy umbrella insurance to increase the limits on my car insurance. It also increases the liability limits on my home as well.
As long as you own cars, you can have an umbrella policy. I would check with your insurance agent for exact details of the coverage provided.
Since you talk about having your home sold, I'm trying to understand exactly what risk(s) you are trying to insure against. Perhaps, you could elaborate a bit on that.
Lots of opportunity for liability suits. Dog bites someone who develops gangrene. Horse kicks idiot in the man parts. Someone claims you slander them. Someone says "hold my hand while I swing over this big gaping hole"... You know, silly stuff that does not end well. Or maybe I am overthinking it.
Lots of opportunity for liability suits. Dog bites someone who develops gangrene. Horse kicks idiot in the man parts. Someone claims you slander them. Someone says "hold my hand while I swing over this big gaping hole"... You know, silly stuff that does not end well. Or maybe I am overthinking it.
No, you're not overthinking it. One of the most common things that umbrella policies protect against are disastrous auto crashes. Multiple people permanently crippled, ongoing medical bills... that sort of stuff can easily overwhelm the limits of a person's regular auto insurance coverage.
You don't need to own a home to benefit from umbrella coverage!
Lots of opportunity for liability suits. Dog bites someone who develops gangrene. Horse kicks idiot in the man parts. Someone claims you slander them. Someone says "hold my hand while I swing over this big gaping hole"... You know, silly stuff that does not end well. Or maybe I am overthinking it.
I have practiced personal injury law for thirty-four years. Let me tell you why I maintain a $1,000,000 umbrella policy. It is not why you think.
I don't worry very much about being sued. I do worry a great deal about being struck by another driver who has either no insurance or very little insurance and unfortunately the roads abound with them. My umbrella policy increases my limits of uninsured motorist and underinsured motorist coverage to $1.1 million dollars (umbrella plus basic policy). If anyone in my family is seriously injured in a car accident because of a deadbeat driver I know there will likely be adequate insurance to compensate us for the loss.
If all umbrella insurance did was increase liability limits, I probably wouldn't bother. I'm much less concerned that I will harm someone than they will harm me. A traffic accident is the major event that occurs to most people and the one to be most on guard about.
i agree, that is why we have an umbrella policy and don't own a home .
what was interesting about our policies were , when we did own a home in an hoa in the pocono's the question came up as to:
since we have a neighborhood patrol in the development of resident volunteers what happens if they chase some kids out on rtv's or snow mobiles and the kids get hurt and the hoa is sued for more than the policy limits it has ?
the answer surprised us . we figured each homeowner would be responsible for any overage , but we did not know our homeowners and umbrella would not cover it . i called our insurer who confirmed that all coverage is only on acts by the insured and household members , not others .
so if someone elses action gets you sued , it will not be covered . geico said some insurers offer a co-op/condo/hoa rider to avoid this situation but they don't .
also any acts with a firearm are not covered if you get sued . discharging a firearm at someone is considered an intentional act and they don't cover intentional acts either
Last edited by mathjak107; 07-25-2018 at 03:46 AM..
Before retiring, I had auto, homeowners & umbrella thru State Farm. After retiring, selling home, now living with daughter's family, SF would not renew umbrella with auto only, had to have Renter's policy also.
my dad has an umbrella policy (and everything else) with state farm. he is the kind of guy that pays way too much for stuff like that because he never shops around. he got a ticket (probably driving while holding a cell phone) and his salesman called and said they were considering canceling his umbrella policy.
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