With interest still low, many consumers are ready to take the leap into home ownership. Most lenders require that you have home insurance, commonly called homeowner’s insurance, that offer protection from loss if your home in damaged or completely lost due to a fire or a natural disaster (excluding flood coverage). A basic home insurance policy protects you from loss due to theft, fire or natural disasters, along with protecting your family from personal financial liabilities for covered events.
All too often, homeowners learn after a loss that they don't have enough insurance. They bought their homeowners insurance based on the size of their home, not the value of their home and its content. While many homeowners have less insurance than they need for a catastrophic loss, most insurance companies offer full-replacement coverage. These full-replacement coverage policies can cover up to 100 percent of the cost of replacing all your possessions and add money to your home’s replacement cost based on current home prices in your area.
In our litigious society, it is comforting knowing that homeowner’s insurance protects you from personal liability if someone suffers an injury or a fatality on your property that you are legally responsible for. The coverage also extends to you and your family members in the event of damage to another person’s property.
While your legal fees can be paid by your insurance company if an injured person sues you, normal protection limits may not not enough. Imagine your daughter has a friend over and she dives into your pool and hits the edge of the deck. She suffers a permanent brain injury and will need care for the rest of her life. One-hundred thousand won’t cover the hospital bills, let alone ongoing lifelong care. But, umbrella insurance helps solve this problem.
Umbrella insurance kicks in when you reach your liability limits for your homeowner’s and/or auto insurance. Until recently, insurance agents recommended a million dollars in umbrella coverage. Today, that number has moved to $5 million. Since, coverage of this amount ranges from $500 to $1,000 per year, it is a good investment. A large judgement could ruin you financially. Protect your family and your bank account by adding umbrella insurance onto your home insurance for the extra protection you need.
Is your family protected? Call McFarlin Insurance Agency at (410) 312-7800 for more information on Maryland home insurance.