Locating the right property insurance cover may not rank high on your list of priorities and, alongside investment decisions and estate planning issues, questions about the language in your homeowners policy may seem barely worth considering. Yet, the more successful you are, the more detailed your asset-protection needs are likely to be-and the more you have to lose. Suppose, for example, that in addition to your primary residence-a historic home-you also own a house at the beach and a condo in the city.
For instance, let's assume that your properties are in three states, the value of your collection of Abstract Expressionist paintings has risen quickly and you just volunteered to serve as a director of of a charitable organization. Virtually every aspect of your present situation could cost you dearly.
Insurance laws vary widely from one state to the next, different sorts of property require specialized coverage and art collections and other unique items may prove difficult to fully protect. Meanwhile, serving on the board of a non-profit organization might subject you to additional personal liability.
Protecting yourself and your family might mean buying additional coverage, although more insurance isn't necessarily the answer. Instead, it's important to review all of your needs, consider specialized policies or policy options and coordinate your insurance cover with other facets of your financial situation.
Here are 6 different shortcomings that could turn out to be very costly.
1. Leaving gaps in your homeowner's cover.
Any homeowner needs to look at their coverage on a regular basis so that they can keep up with rising replacement costs. But, insuring different kinds of property in different locations poses special challenges. If you buy insurance cover from more than one carrier then you may face contrasting limitations, rules, and plan renewal dates. For instance, the liability limit on the plan for a second home could fall below the minimum on an excess liability plan designed to complement the insurance cover on your primary home and you could wind up being responsible for coming up with the difference.
2. Brushing Aside the unique characteristics of your property.
One of the perks of affluence is having the money to own great homes but one of the drawbacks is that These may be hard to insure adequately. Normal homeowner's coverage is not going to pay for the hard-to-find materials and craftsmanship necessary to rebuild that 19th century property you have lovingly restored. Coastal properties could well be subjected to hurricane damage, while a home in the mountains of California could be subject to wildfires or earthquakes.
3. Inadequate insurance for collectibles and art.
Normal homeowner's policies place a limit on coverage for the loss of hings like antiques, furs, and other valuables. And while you could arrange additional cover, insuring the true value of an art collection will usually mean buying a specialized plan which addresses several critical issues.
4. Forgetting to organize insurance for household employees.
When a person works for you as, for example, a nanny, landscaper or personal assistant you could be liable for medical expenses and lost wages if that worker is hurt while at work. Several states require household employers to pay into a workers compensation fund while in other states it's optional. All The Same, providing such insurance cover may be required for ensuring your financial health.
5. Neglecting your liability as a member of a board of directors.
Excess liability coverage could help protect you if you're sued as a director of a charity or, if you prefer to have more comprehensive protection, you might want to think about taking out special directors liability insurance.
6. Not getting regular plan reviews and updates.
Your finances aren't static and neither are your needs for insurance. The value of your art collection may rise, extensive home renovations may mean an increase in the value of your property and the re-titling of assets as part of your estate plan or because of divorce, a death in the family, or the birth of a child may necessitate policy changes. Even without any significant events, you probably need to carry out a review of all your insurance cover at least every two years.
For instance, let's assume that your properties are in three states, the value of your collection of Abstract Expressionist paintings has risen quickly and you just volunteered to serve as a director of of a charitable organization. Virtually every aspect of your present situation could cost you dearly.
Insurance laws vary widely from one state to the next, different sorts of property require specialized coverage and art collections and other unique items may prove difficult to fully protect. Meanwhile, serving on the board of a non-profit organization might subject you to additional personal liability.
Protecting yourself and your family might mean buying additional coverage, although more insurance isn't necessarily the answer. Instead, it's important to review all of your needs, consider specialized policies or policy options and coordinate your insurance cover with other facets of your financial situation.
Here are 6 different shortcomings that could turn out to be very costly.
1. Leaving gaps in your homeowner's cover.
Any homeowner needs to look at their coverage on a regular basis so that they can keep up with rising replacement costs. But, insuring different kinds of property in different locations poses special challenges. If you buy insurance cover from more than one carrier then you may face contrasting limitations, rules, and plan renewal dates. For instance, the liability limit on the plan for a second home could fall below the minimum on an excess liability plan designed to complement the insurance cover on your primary home and you could wind up being responsible for coming up with the difference.
2. Brushing Aside the unique characteristics of your property.
One of the perks of affluence is having the money to own great homes but one of the drawbacks is that These may be hard to insure adequately. Normal homeowner's coverage is not going to pay for the hard-to-find materials and craftsmanship necessary to rebuild that 19th century property you have lovingly restored. Coastal properties could well be subjected to hurricane damage, while a home in the mountains of California could be subject to wildfires or earthquakes.
3. Inadequate insurance for collectibles and art.
Normal homeowner's policies place a limit on coverage for the loss of hings like antiques, furs, and other valuables. And while you could arrange additional cover, insuring the true value of an art collection will usually mean buying a specialized plan which addresses several critical issues.
4. Forgetting to organize insurance for household employees.
When a person works for you as, for example, a nanny, landscaper or personal assistant you could be liable for medical expenses and lost wages if that worker is hurt while at work. Several states require household employers to pay into a workers compensation fund while in other states it's optional. All The Same, providing such insurance cover may be required for ensuring your financial health.
5. Neglecting your liability as a member of a board of directors.
Excess liability coverage could help protect you if you're sued as a director of a charity or, if you prefer to have more comprehensive protection, you might want to think about taking out special directors liability insurance.
6. Not getting regular plan reviews and updates.
Your finances aren't static and neither are your needs for insurance. The value of your art collection may rise, extensive home renovations may mean an increase in the value of your property and the re-titling of assets as part of your estate plan or because of divorce, a death in the family, or the birth of a child may necessitate policy changes. Even without any significant events, you probably need to carry out a review of all your insurance cover at least every two years.
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