Almost everyone understands the basic concept of insurance and the needs it is used to fill such as protection and risk coverage on property, health and life itself. Auto insurance is probably the most familiar to everyone since most people start driving at an age before they need to understand such insurance coverage as health and homeowners. However, there are lesser known types of insurance policy provided by your local Memphis insurance agent like the umbrella policy.
Umbrella policies are utilized for a variety of reasons but most often, umbrella policies are used as a way to fill gaps in insurance coverage and extend the limits of standard policies once their maximums are reached. A small business owner is an excellent example of someone that would benefit from having this type of policy in place. Most business owners are required to have certain levels of general liability insurance in place to comply with local laws and requirements for operation a business. I fact, most municipalities will not issue a business license until general liability insurance has been purchased and in force.
In many cases, having a standard general liability policy is not enough coverage to protect the interest of the business. In order to extend coverage, business owners often purchase an umbrella policy to fill the gaps often left by general liability policies. Memphis insurance agents council clients on the benefit of owning an umbrella policy and how it can protect them in the event an unfortunate event occurs that could result in devastating effects on their business. In today’s society, litigation ties up the courts and is big business for lawyers and law firms. An umbrella policy in place over and above a general liability insurance can provide the peace of mind a small business owner needs.
Parents of teenage drivers are also excellent candidates for umbrella insurance. Teenage drives are more susceptible to car accidents and place their parents assets at risk should they become involved in an auto accident. Automobile insurance polices have per occurrence minimums which can place parents at risk should liability resulting from a car accident exceed policy maximums. An umbrella policy will takeover once basic automobile insurance ends, giving parents added protection and out of pocket losses.
As with anything financial and involving assets, evaluation of current risk and needs should be considered. A meeting with a financial advisor should be sought first as they are qualified to evaluate financial matters. Once a meeting with a financial advisor is completed, a meeting with you local Memphis insurance provider can determine how to best protect your assets. Standard homeowners, auto insurance and life insurance policies may be enough. However, in the event standard polices do provide enough protection for potential risk incurred, an umbrella policy may be needed to cover the short fall in basic coverage.
Umbrella insurance policies cover claims for accidents or damages that were caused by you or members of your family. An umbrella policy is unique in the sense that benefits will not be paid until the limits of standard liability policies such as homeowners and auto insurance policies max out. We will use an example of a homeowners policy to illustrate how a umbrella policy would be beneficial and provide needed protection. If your homeowners policy with liability provisions of $350,000 and a claim or judgment by the courts for liability exceeded $350,000, the umbrella policy would pay claims once the $350,000 general homeowners policy is exceeded. The umbrella coverage would pay claims up to the amount of the policy limits selected when the policy was purchased, for example,$1,000,000. If a claim were to be made for $750,000 against the insured, the homeowners policy would pay up it’s limits of $350,000 and the umbrella policy would payout the remaining $400,000 of the claim.
When a umbrella policy is purchased, the insured is increasing higher liability limits that they would otherwise receive from their standard coverage. Having an umbrella insurance policy in force can provide the added protection needed to fill gaps over and above your standard insurance coverage providing the security you need. By visiting your local Memphis insurance agent or broker, you can learn more about liability insurance and specifically, umbrella insurance.
Showing posts with label memphis homeowners insurance. Show all posts
Showing posts with label memphis homeowners insurance. Show all posts
Friday
Memphis Insurance And Understanding Your Declaration Page
The insurance industry is a mystery to many and most insurance consumers don’t really understand what they own. They get the concept of insurance, but the real nuts and bolts are rarely understood. This is the reason the Memphis Insurance blog was created as a source of easily understood articles which explain how insurance works. In this article, we are going to explain what a declaration page is and what purpose it serves.
The declaration page is usually found on the front of a policy and defines in summary form the terms of the policy and what coverage is included in the policy. The first thing found on the declaration page is the name of the insurance company that is responsible for issuing the policy. Usually this is the name of a nationally recognized company, however, if you are dealing with a local Memphis Insurance company, their name may be in place of the national company.
The next item found on the declaration page is the type of policy. This part of the declaration page tells if the policy is a life, auto, homeowners or some type of health insurance policy such a disability policy. Then the name and address of the policyholder will follow and when the policy will become effective and coverage begins. Because the insured’s name is on the policy, it identifies the policyholder to whom the policy has been issued. It is also very important to know when you policy is in effect in order to avoid a lapse in coverage.
Your declaration page will also indicate the amount of coverage issued by the company. There are a wide variety of policies available and depending on what type the insured has been issued will determine what is in this section of the declaration page. For illustration purposes we will use a Memphis car insurance policy as an example. This kind of policy will reflect the different types of coverage and the amounts. Liability and it’s maximum coverage, property damage, uninsured motorist and comprehensive will all be broken down into their on section outlining type and coverage amounts. Each type of coverage will have it’s own section providing the above details.
There will also be other very important information on the declaration page and we will use a Memphis car insurance policy again as an example. The declaration page will identify individual cars that will be covered by the policy. If it were a Memphis homeowners insurance policy, the address for the property would be shown along with coverage maximums, the deductible if there is one, it’s total amount and the amount of the premium and payment mode.
It should be noted, there is one thing which will not appear on the declarations page and this is exclusions. Exclusions are things that are specifically not covered by the issued policy and it is very important that you, as the insured, should not stop once you have read the declaration page in order to understand your policy and what you have purchased.
There will also be another section in the declaration page which covers endorsements and riders. Many times we already have an insurance policy in force and choose to increase the amount of coverage or add additional protection. Of course these increases in coverage and protection will increase the amount of dollars we pay for coverage, but our lives change as do our needs. In the property and casualty part of the insurance industry, these additional changes or increases in coverage are called endorsements and are referred to as riders in the health and life sections of the industry. All riders and endorsements will be outlined and listed on you declaration page of your insurance policy.
At the bottom of your declaration page you find the signature of the authorized company representative. All insurance policies are contracts and the nature of contract law states that no contract is valid unless signed by someone that is authorized. The declaration page will usually have the signature of a company officer along with your signature making the insurance policy a binding contract.
The declaration page of your insurance policy provides a wealth of information which outlines what you have purchased. It is important however, that you look further into your policy to completely understand your coverage, protection and it the limitations of the policy. Once you receive your policy, set aside time to read the entire policy and if you have questions, please call your local Memphis insurance representative or national company representative for a precise explanation. Insurance professionals are trained to answer your questions and provide you the information you need to be an informed insurance consumer.
The declaration page is usually found on the front of a policy and defines in summary form the terms of the policy and what coverage is included in the policy. The first thing found on the declaration page is the name of the insurance company that is responsible for issuing the policy. Usually this is the name of a nationally recognized company, however, if you are dealing with a local Memphis Insurance company, their name may be in place of the national company.
The next item found on the declaration page is the type of policy. This part of the declaration page tells if the policy is a life, auto, homeowners or some type of health insurance policy such a disability policy. Then the name and address of the policyholder will follow and when the policy will become effective and coverage begins. Because the insured’s name is on the policy, it identifies the policyholder to whom the policy has been issued. It is also very important to know when you policy is in effect in order to avoid a lapse in coverage.
Your declaration page will also indicate the amount of coverage issued by the company. There are a wide variety of policies available and depending on what type the insured has been issued will determine what is in this section of the declaration page. For illustration purposes we will use a Memphis car insurance policy as an example. This kind of policy will reflect the different types of coverage and the amounts. Liability and it’s maximum coverage, property damage, uninsured motorist and comprehensive will all be broken down into their on section outlining type and coverage amounts. Each type of coverage will have it’s own section providing the above details.
There will also be other very important information on the declaration page and we will use a Memphis car insurance policy again as an example. The declaration page will identify individual cars that will be covered by the policy. If it were a Memphis homeowners insurance policy, the address for the property would be shown along with coverage maximums, the deductible if there is one, it’s total amount and the amount of the premium and payment mode.
It should be noted, there is one thing which will not appear on the declarations page and this is exclusions. Exclusions are things that are specifically not covered by the issued policy and it is very important that you, as the insured, should not stop once you have read the declaration page in order to understand your policy and what you have purchased.
There will also be another section in the declaration page which covers endorsements and riders. Many times we already have an insurance policy in force and choose to increase the amount of coverage or add additional protection. Of course these increases in coverage and protection will increase the amount of dollars we pay for coverage, but our lives change as do our needs. In the property and casualty part of the insurance industry, these additional changes or increases in coverage are called endorsements and are referred to as riders in the health and life sections of the industry. All riders and endorsements will be outlined and listed on you declaration page of your insurance policy.
At the bottom of your declaration page you find the signature of the authorized company representative. All insurance policies are contracts and the nature of contract law states that no contract is valid unless signed by someone that is authorized. The declaration page will usually have the signature of a company officer along with your signature making the insurance policy a binding contract.
The declaration page of your insurance policy provides a wealth of information which outlines what you have purchased. It is important however, that you look further into your policy to completely understand your coverage, protection and it the limitations of the policy. Once you receive your policy, set aside time to read the entire policy and if you have questions, please call your local Memphis insurance representative or national company representative for a precise explanation. Insurance professionals are trained to answer your questions and provide you the information you need to be an informed insurance consumer.
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