Posts Tagged ‘umbrella policy’

What’s a Solid Insurance Portfolio and Why Do I Need to Have One?

December 1, 2014

solid_insurance_portfolioMany people have no idea what their insurance limits are. More times than not, they just purchase the least expensive they can legally get by with, as it is considered a “necessary evil”. However, talk to anyone who has experienced a large loss in their lifetime, and they’ll tell you either they’re sorry they did not have enough, or are glad they listened to their insurance agent and went with the recommendations.

The purpose of insurance is to protect your assets, and to put you back in the same place you were before a loss. The homeowner policy pays to rebuild the house, replace the personal property, and pay for a temporary place for you to live while the repairs or rebuild is taking place. It also gives you liability protection in case you’re negligent in causing bodily injury or property damage to a third party. The auto policy provides liability coverage if you’re found to be at fault in operating a car, in addition to repairing your car if you purchase comprehensive and collision coverage.

So what happens if the insurance you carry is not enough to cover the loss that has been sustained?  The answer is simple: You have to come out of pocket for the difference.

What, then, is considered a solid insurance portfolio? Here are my recommendations: (more…)