Are You Properly Insured?

Everyone is familiar with standard home and car insurance.  There are several other types of insurance coverage that may make sense for you to consider given your specific circumstances.  We have listed below some less common types of insurance with brief descriptions of each.

Titling of insurance if the home is owned by trust/LLC – Many people use trusts or LLC’s to hold the title of their homes. Homeowners often forget to add their trust or LLC as an additional insured on the policy. Adding a trust or LLC to your policy does not cost any extra premium, but it does protect you and the entity that owns the title to your home from lawsuits resulting from injuries that happen at your home.

Umbrella policy – This is a type of policy we recommend to all of our clients since most are considered high net worth and can possibly be targets when it comes to lawsuits. An umbrella policy will ride above your current car and home insurance (if you have the same insurer for both) and add an extra layer of protection. The average annual cost for a $1 million policy is $200 and about $100 a year for each million above that. For example, if you have $500,000 of car insurance and a $1 million umbrella, you would have coverage up to $1.5 million if you were to injure someone in a car accident.

Workers compensation – Covers the medical expenses and lost wages of nannies, housekeepers, care givers, and other household employees who become ill or injured on the job. It also protects you as the employer from liability. Policies cost an average of $750 per year based on a $50,000 salary.

Excess flood – Even if you maintain standard flood insurance, it might not be sufficient. Policies you can purchase through the National Flood Insurance Program are capped at $250,000 for your home's foundation and structure with an additional $100,000 for the contents of your home. Through private insurers you can buy policies for up to $10 million.

Jewelry riders – Standard home insurance policies tend to only have $10 in jewelry coverage per $1,000 of coverage (Ex. $300,000 policy would = $3,000 in jewelry coverage). Therefore, it is important to purchase “valuable articles coverage” to insure the full value. This type of insurance covers items such as; jewelry, art, and collectables like wine, sports memorabilia, coins, etc.

Cyber insurance – This type of insurance can help protect you from identity theft, hacking, cyberstalking or harassment. With this type of policy, you may be able to recover stolen funds and ensure you have the resources to get your life and identity back. The average cost for a policy is $250 annually per $100,000 of protection. 

Although we do not sell insurance, we understand the ability of insurance to transfer financial risks from yourself to an insurer.  You should discuss your specific circumstances with your insurance provider or agent.