Loudoun Insurance and South Riding Insurance, Northern Virginia Zip 201*-221*, Near 20152

Personal Umbrella Policies

When It Rains, It Pours: Why You Need a Personal Umbrella Policy

In recent years, our society has become what some people call "lawsuit happy." In other words, an increasing number of people are filing lawsuits for everything from emotional injury to property damage-and they're suing for larger amounts than ever before. If someone were to file a lawsuit against you, you could end up losing hundreds of thousands of dollars or more, even if you won.

While you may have some personal liability coverage through your homeowner's or auto insurance policy, it's probably not nearly enough to cover a major lawsuit. Fortunately, you can further protect yourself with what's known as an umbrella policy. This type of policy offers a higher level of liability coverage and ensures that you and your family will be protected if someone sues you for damages.

Read on to learn more about these valuable policies:

Umbrella policies: A liability coverage "extension"

When it comes to lawsuits, the more assets you own, the more you stand to lose. A personal umbrella liability policy can protect you from these potentially devastating losses. These policies act as an extension to the current liability protection you probably have through your homeowner's or auto insurance policy.

Umbrella policies are typically sold in million dollar increments, and you can obtain a policy once your home and auto insurance policies meet a minimum "attachment point"-typically a liability limit of $250,000 or $500,000. Here in Loudoun County, Virginia, Agent Khalid Umerani often sells Umbrella policy limits of $2 million & $3 million.

What does it cover?

Most umbrella policies covers the following:

Personal injury, including false arrest, mental anguish, malicious prosecution, libel, slander, defamation of character, wrongful entry or eviction, negligent infliction of emotional distress or invasion of privacy.
Bodily injury, such as physical injury or death. In some jurisdictions, this also includes emotional injury.
Property damage, including destruction of the property of others, cost of recreation and loss of use. However, it does not cover damages done to your own property.
Defense coverage, including groundless, false and fraudulent suits, bail bond costs, loss of earning and other "reasonable" expenses.
Of course, it's probably easier to understand exactly what an umbrella policy covers by putting it into real-life terms. Here are a few examples of what this type of policy could cover:

A deliveryman is hauling your new washing machine into your home when he trips on your door mat, falls and breaks his neck. Your umbrella policy would likely cover the hundreds of thousands of dollars worth of damages.
You're driving down the road when an important corporate CEO steps into the crosswalk in front of your car. He sues you for millions of dollars in medical costs, lost earning and damages. Your umbrella policy can cover you for these damages.
Your daughter invites a friend over to play on her swing set. Her friend falls off the slide and suffers from serious injuries. When her parents sue you, your umbrella policy will cover the medical costs.
How much does is it cost?

The price of an umbrella policy depends on how much coverage you want, the number of properties you rent or own and the number of automobiles or watercraft you own. The cost associated with cars and watercraft are much higher than those associated with properties.

Let's say you are single, you own one home and one car, and you want to purchase a $5 million umbrella policy. You'll probably pay somewhere between $270 and $550 a year. On the other hand, if you are married with two children, you own two homes, a rental property and three cars, and you want a $10 million umbrella, you'll probably pay a good deal more-anywhere between $970 or $1,750 a year.

Call us here at NOVA Insurance Group, South Riding, VA (Loudoun County) to discuss whether or not an umbrella policy is right for you. In the long run, by paying a few hundred dollars per year, you could save millions. We can also be reached via our two websites:
www.south-riding-insurance.com
www.loudoun-insurance.com

Labels: Personal Liability Insurance Fairfax / Loudoun Counties, Personal Umbrella Policy in South Riding / Chantilly, South Riding Insurance

posted by Khalid Umerani @ 11:39 AM
NOVA Insurance (20152) Group - Loudoun Insurance

There Are Good Reasons Why Your Insurance Doesn't Cover That Loss

There Are Good Reasons Why Your Insurance Doesn't Cover That Loss

Every insurance policy has a section popularly known as "the fine print," though its actual title is "Exclusions." Exclusions are provisions in an insurance policy describing losses that the policy will not cover. For example, a homeowner's policy does not cover losses caused by the use of cars, and a business auto policy does not cover injuries caused by a bulldozer on a construction site. While it may appear at first glance that the insurance company includes these provisions to get out of paying claims, the reasons are more complex and less insidious than that. There are very sensible reasons why no insurance policy covers everything.

First, not every person or business has the same exposures to loss. Most homeowners do not own a dump truck used in a business; the owner of the dump truck might not have employees to insure for jobsite injuries; the employer with a dozen employees might not own the building it occupies. Imagine if there were one insurance policy that covered all of these exposures -- it would be hundreds of pages long and very complex. Therefore, over time insurance companies have developed different policies for different exposures -- auto, home, business liability, and so on. The homeowner's policy excludes losses that the auto policy should cover, personal policies exclude losses that business policies should cover, and vice versa.

Related to this are the issues of cost and choice. Standard insurance policies contain coverages that apply to large groups of households and businesses, but they do not cover every possibility. Those with additional needs have coverage options to choose from. For example, homeowner's policies do not cover damage caused by water backing up from an overflowing sump or drain, but households that have basements with sumps or drains have the option of buying this coverage. Households without a basement do not have to buy it. This affords the buyer choices but does not force coverage on those who do not need or want it.

Furthermore, exclusions reduce the cost of the insurance policy. Every coverage comes with an associated cost -- the company must factor in the costs of potential claims, expenses and profit for that coverage. The more coverages a policy provides, the higher its premium will be. Without exclusions, people and businesses would be forced to pay for coverages they do not need. Exclusions help keep the premium affordable.

Finally, certain types of losses are uninsurable. Insurance companies cannot accurately predict when certain types of losses will happen, and the potential loss amounts are too large for them to absorb. For example, almost all policies exclude losses suffered as the result of a war or a nuclear accident. These events would cause massive losses beyond the abilities of insurance companies to pay. Other losses are not insurable as a matter of common sense. Because the purpose of insurance is to pay for losses from accidents, it will not cover most losses that a person intentionally causes.

Because every household or business's circumstances are different, standard policies might not provide all the coverage necessary for proper protection. Properties in flood-prone areas, businesses that have a lot of contracts with other businesses, and individuals who post to online message boards may all lack important coverage. Consultation with a professional insurance agent will help determine whether more coverage is needed, whether it is available, and how much it will cost. The time to find out the availability and cost of coverage is before the loss occurs.

Free free to Khalid Umerani, Agent, here at NOVA INsurance Group to discuss coverages and premium quotes for all your insurance policies. We serve Loudoun and Fairfax Counties, and work primarily in South Riding, Chantilly, Ashburn, Centreville, Reston, Herndon, Aldie and the surrounding cities.

www.south-riding-insurance.com
www.loudoun-insurance.com

Labels: Auto Insurance claims, Car Insurance claims, Homeowners Insurance Claims, Property Insurance Claims

posted by Khalid Umerani @ 2:47 PM
NOVA Insurance (20152) Group - Loudoun Insurance