Conversations with Kim: Insurance

I’m feeling overwhelmed by the many insurance options available and I’m not sure which ones are the best fit for me. I’m married and we have a child on the way. We’re renting at the moment but are hoping to buy our first house before the baby comes. How can I determine which insurance policies will protect my assets? I’ve heard about umbrella policies—can you explain what they are and how to know if it’s right for you?  

Thanks for your question. This is outside my specific finance area of expertise, so I reached out to my friend Steve Irwin at State Farm Insurance to help answer for us below.

A Personal Liability Umbrella Policy (PLUP) may help you protect your assets and financial future in case of a liability lawsuit.

It may also help protect you against personal injury claims for situations not covered by your underlying auto or home policy, such as defamation of character, libel, or slander.

Adding this coverage may help protect your current finances and assets like your home, cars, and property.

Some common occurrences where a PLUP may protect you are:

1.) While driving, you change lanes and cause an accident, which results in multiple injuries to the passengers of another vehicle.

2.) While cooking, you leave your stove unattended. In addition to damaging your property, the fire also damages your neighbor’s property and causes injuries to them.

3.) While operating your boat, you hit a water skier and cause serious injury.

A PLUP can be a massive benefit towards protecting your home and financial future from incidents like these. It may also be in your best interest to meet with a licensed insurance agent to further discuss how these policies can help protect you in the future.

~ Steve Irwin, State Farm Agent

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