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This $150 Policy Could Save You Millions

Umbrella Insurance. You've probably heard of it but do you understand what it is and whether you really need it?  


To begin, lets look at the case of Tim and his son, Ben. Ben recently celebrated his 16th birthday and received his driver's license. Shortly after his birthday, Ben was involved in an accident. He was found to be at fault, as he had run a red light while texting. Ben caused serious bodily injury to the driver and 3 passengers of the other vehicle. The other party sued Tim and Ben in the amount of $1.2M to recover medical expenses and compensate for pain and suffering. The court ruled in favor of the other party and Tim was ordered to pay. 

So, will this huge bill be covered by insurance? The answer is yes, at least partially. Tim's auto insurance policy has a $500,000 liability limit (which is typically the max offered on an auto policy) and will cover up to that amount. Without additional coverage, Tim and his family would be on the hook to pay the additional $700,000 owed. 

Luckily, Tim had talked with his insurance adviser about the benefits of a liability umbrella before he added Ben to his auto policy and opted to purchase a $1M umbrella policy. The umbrella policy picked up the remaining $700,000 that was owed, saving Tim and his family from financial ruin.

This is exactly what an umbrella policy is for. It is an extra layer of liability insurance that sits on top of your underlying policies, such as auto or homeowners, and kicks in once their liability limits have been reached. 

So, do you need an umbrella policy? If you're sued and you don't have enough liability insurance to cover the cost, all of your assets will be exposed. This includes your savings, such as checking and saving accounts, your home, your car, and even your future income. If you have assets you've worked hard to acquire, you should consider an umbrella policy. An average umbrella costs between $150 and $300 per year. Give me a call to see if an umbrella policy is right for your insurance plan.

 

Tax Tidbit

The deadline to file your 2014 taxes is April 15, 2015. What if you miss the deadline? According to Turbo Tax, if you are due a refund, you have until April 15, 2018 to file before the IRS keeps your refund. If you owe, you should file as soon as possible, even if you can't pay your tax bill right now. The penalty for a late filing can be 10 times the penalty for a late payment.

 

Spring Maintenance for Your Home 

When springtime rolls around, almost everyone thinks of cleaning. That's fine (we probably all need to do a little more of that, after all), but there's something even more important to keep in mind: home maintenance.

 

Here are some suggestions from the Department of Housing and Urban Development:

 

Interior and appliances

  • Check the basement and/or crawlspace for any signs of standing water or dripping.
  • Pull your dryer out and clean the exhaust hose and vent (lint found here is a common cause of house fires).
  • Vacuum refrigerator/freezer coils for efficiency.
  • Clean exhaust fan outlets and screens.
  • Check all air filters and replace, if necessary.

 

Roof, siding, windows

  • Check for damage to your roof and have a professional inspection, if necessary.
  • Go into the attic. If there is visible moisture or discoloration, your roof might be leaking.
  • Examine the paint on your siding and trim. If it is peeling, you might need new paint to protect against the effects of weather.
  • Check for leaks around window and door sills. Improving your seals can lower your energy bills.

 

Yard and exterior

  • Check for signs of rodents and other pests.
  • Clean debris from gutters and downspouts, and make sure they are draining away from the home.
  • Trim overhanging tree branches and shrubs.

 

Remember, winter weather can cause significant damage that is easy to spot, but it often results in wear and tear that homeowners can miss if they aren't looking closely. It's well worth it to spend a little time on home maintenance this spring, so that wear and tear doesn't turn into something more serious.

 

The Most & Least Expensive 2015 Cars to Insure 

The Most Expensive

1. Nissan GT-R Nismo

$3,574

2. Mercedes-Benz SL65 AMG Convertible

$3,573

3. Dodge SRT Viper

$3,318

4. Porsche 911 Carrera S Cabriolet

$3,216

5. Audi R8 5.2 Spyder Quattro

$3,206

 

The Least Expensive

1. Jeep Wrangler Sport 4WD

$1,134

2. Jeep Patriot Sport 2WD

$1,136

3. Honda CR-V LX 4WD

$1,160

4. Dodge Grand Caravan SE Plus

$1,162

5. Honda Odyssey LX

$1,163

 

Our Location

Dean Olson Insurance Agency

3570 Lexington Ave North Suite 201
Shoreview, MN 55126
Main office: 651-633-0408

Our Providers

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