August 10, 2008 Show
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Topics
Healthcare Connect
Healthcare Connect is a non-profit organization that connects qualified,
uninsured residents of Maricopa County with complete, coordinated health care at affordable rates.
Healthcare Connect is a medical discount program.
Insurance In The News:
Florida is spending $244 million
for the guarantee that the state can borrow up to $4 billion if necessary
to cover future losses by its emergency hurricane fund
Insurance Outrage of The Week:
Universal Life insurance being sold as the Swiss Army knife of financial planning
Insurance Trivia:Am I Covered:
Have a question or a comment. Call the show. 480-949-1310
Special Guest
Eric Dugar
Executive Director
Healthcare Connect
700 East Jefferson Street, Suite 100
Phoenix, AZ 85034
602-288-7564
www.healthcareconnect.org
Term of The Week:
APPORTIONMENT:
The dividing of a loss proportionately among two or more insurers that cover the same loss.
(To determine how the loss is to be apportioned between two insurers, the courts look at what is just and equitable.)Larry's Tip of The Week:
Umbrella insurance is not just for the rich. It coordinates with your existing homeowners/renters coverage and auto insurance and the premiums
are not very expensive. As we discussed last week, Umbrella insurance acts like an umbrella. It sits on top of your home and auto insurance
policies to provide extra protection.Let's look at some examples where you would use your umbrella insurance.
An auto accident in which you are sued under your auto insurance policy.
Your neighbor slips and falls on your property, and you are sued under your homeowners insurance.
A natural disaster in which another person's property is damaged by, say, a tree on your property crashing down on their vehicle or home.
This usually falls into the, "I thought that was covered by my homeowners policy" category.
Some of this is covered but there are limits on your policy.
Your auto and homeowners policies have liability coverage but what if you are hit with a judgement that goes beyound your limits of liability.
This is where the Umbrella policy it comes. It pays over and above the limits of liability in your home/renters or auto insurance policy.
With Americas high incidence of law suits virtually everything you own would be fair game to pay off the debt. Some states protect certain assets (like your home) from seizure.
Umbrella liability insurance can pay from $1 million and sometimes even $5 million or more of a claim, on top of what your basic policies will pay.
Premiums are usually $200 to $300 a year for $1 million worth of coverage. Costs will vary based upon underwriting factors and your loss experience.
Although how much you own is relevant when deciding to purchase Umbrella insurance there are other factors to consider. Because of your life
style are you an easy target for a big settlement? Do you travel a lot? Do you entertain a lot? Do you operate a home-based business and have
employees or clients coming to your home on a regular basis? (Many self-employed people wrongly assume that this is covered in their homeowners policy.) Do you have assets you want to protect. If you answered yes to any of these questions, it is particularly important for you to have umbrella
liability insurance.
Imagine, just about everything you do has a risk of liability. Any of which can instantly decimate even the best financial planning strategy.
Reference: MSN Money By, Ginger Applegarth