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3 Things 10-28-24

Thing One



Do you need an umbrella insurance policy?



Umbrella insurance isn't required by law but is most often purchased by people who have a lot of assets to protect or a high chance of being sued. Per nerdwallet.com, it might be worth purchasing umbrella insurance coverage if you:



Own property.

Have significant savings or other assets.

Are worried about liability claims against you when traveling outside the U.S.

Own things that can lead to injury lawsuits such as pools, trampolines, guns or dogs (check with your insurer to make sure your breed is covered).

Are a landlord.

Have an inexperienced driver in your household.

Coach kids’ sports.

Frequently host parties in your home.

Serve on the board of a nonprofit.

Regularly post reviews of products and businesses.

Participate in sports where you could easily injure others (such as hunting, skiing or surfing).

Are a public figure.


Umbrella policies typically start at 1 million dollars worth of coverage and providers of these policies require the applicants to have existing liability limits on their auto and home policies at the high end of the range (usually a minimum of $250,000/$500,000/$100,000 on auto and $300,000 on home). The liability coverage under an umbrella policy kicks in when the limits of the underlying policy have been exhausted.



To qualify for a policy, an applicant must have a relatively clean driving record and a low overall claims history. That and the fact that the premiums for the underlying insurance can potentially be higher are the downsides to umbrella policy ownership.



The upside is that the policies are a relatively inexpensive way to buy peace of mind. They cost roughly $150 to $350 (on average) per year for the first million dollars of coverage and about $100 per additional million dollars of coverage above that. Usually, they are sold by either the provider of your current home or auto policy, but there are also a few stand-alone providers who will consider selling you one provided you have the high liability limits and clean records mentioned above.



Here’s one final point to consider. In the nerdwallet.com excerpt above, it was stated that those with significant savings or high assets should consider umbrella policies. It’s worth noting that while certain retirement accounts/assets like 401k, 403b, and pensions are protected from lawsuits by the Employee Retirement Income Security Act of 1974 (ERISA), traditional IRAs don’t have the same protection under that law so they may be vulnerable under certain circumstances. That’s as good a reason as any to carry an umbrella on a sunny day.



Thing Two



Credit Protection In The Online Age



We’re all susceptible to identity theft but those of us who trade with our credit cards over the internet, or even in person, are even more prone to being victimized. In light of this, the credit reporting agencies are reminding us that they offer various ways to help us protect our identities from criminals. The two most common are credit freezes and fraud alerts.



If you never intend to apply for any type of financial credit or use a service (like a utility company) that would require a credit check, then perhaps you should freeze your credit. Any attempt thereafter to use your social security number to apply for credit would be denied on the basis of that freeze. That would be the case until you had your credit unfrozen.



But freezing credit is impractical for many of us so adding a fraud alert to your credit file makes more sense in most cases. A fraud alert asks any business seeking your credit report to contact you to confirm your identity before granting credit in your name. These could include:



Credit issuers

Landlords

Potential employers

Car insurance companies

Car rental agencies


Actual victims of fraud can ask for an extended fraud alert, which stays on your file for seven years unless you have it removed sooner, while those of us in fraud-prevention mode should opt for a temporary fraud alert, which lasts for one year but can be renewed.



Yes, it has gotten much easier to buy anything your heart desires with just a few clicks. But it has also gotten much easier for unscrupulous individuals to take advantage of us using the same methods. Adding a fraud alert is a no-brainer. Visit Experian here and get it done.




Thing Three



Just A Thought



"It's not what you look at that matters, it's what you see." - Henry David Thoreau

Comentarii


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