HOMEOWNER INSURANCE FAQs
Tornado Damage: Does a windstorm include tornados?
Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly a windstorm includes. Tornadoes, hurricanes, high winds, thunderstorms, and blizzards are all included in the definition of windstorm. Your homeowners policy also provides 'loss of use' benefits to cover additional living expenses while repairs are being made to your home.
Volunteer Activities: Are you covered?
Maybe you are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign. Maybe you volunteered hundreds of hours this year without a thought of insurance coverage, but what if someone is injured and legal action is brought against you in these volunteer activities? If you serve as a board member and are sued for breach of duty, imprudent investments, discrimination in hiring, or wrongful termination, are you covered? To answer these questions, there are two places to check: your home insurance and the organization's insurance. Let's look at both...
Your homeowners insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child who is injured when you are the volunteer soccer coach or 4-H advisor. On the other hand, no protection is provided if your volunteer activity is related to a business (chamber volunteer, union, trade, or professional association representative) or if you receive any compensation. Any legal action other than bodily injury and property damage is not covered (an exception: some homeowners policies cover personal injury - libel, slander, false arrest, false imprisonment, etc.).
You can also check for coverage under the organization's policy. Ask the organization's leadership for proof of insurance for general liability, directors and officers liability, and employment practices liability. Also check to see if volunteers are covered (named as additional insureds) under those policies. Other potential loss situations can include:
Communities are fortunate to have so many volunteers donating their time in a host of different areas. This discussion is not meant to discourage any present or prospective volunteers, but rather to help individuals be well-informed, comfortable, and adequately protected when it comes to volunteering.
Umbrella Liability: Why have it? What is it? Who needs it?
Skyrocketing court settlements and medical costs can cause uneasy feelings about the adequacy of insurance protection. Liability insurance pays for injuries to others due to negligent acts by you or another covered person on your policy. Although the liability insurance provided under a home or auto insurance policy is adequate for most situations, in a few instances large lawsuit settlements do approach or exceed the limits of these policies.
An umbrella liability policy is designed to give you peace of mind by adding one million dollars (or multiples of $1 million) of protection to the liability limits of your home and auto insurance policy. *Should a judgment against you exceed the limits of that policy, the umbrella picks up the unpaid portion up to the umbrella policy limit.
Persons most likely to purchase an umbrella policy are:
*The umbrella can also increase the liability limit for your boat, rental property, motor home, recreational vehicle, motorcycle, vacation home and others.
Since the policy specifically refers to windstorm as a covered cause of loss, some residents have wondered what exactly a windstorm includes. Tornadoes, hurricanes, high winds, thunderstorms, and blizzards are all included in the definition of windstorm. Your homeowners policy also provides 'loss of use' benefits to cover additional living expenses while repairs are being made to your home.
Volunteer Activities: Are you covered?
Maybe you are a volunteer soccer coach, a 4-H advisor, a chamber of commerce committee member, on the church board, or you helped raise contributions for the last United Way campaign. Maybe you volunteered hundreds of hours this year without a thought of insurance coverage, but what if someone is injured and legal action is brought against you in these volunteer activities? If you serve as a board member and are sued for breach of duty, imprudent investments, discrimination in hiring, or wrongful termination, are you covered? To answer these questions, there are two places to check: your home insurance and the organization's insurance. Let's look at both...
Your homeowners insurance policy gives you liability protection for bodily injury and property damage to others in non-business activities, like a child who is injured when you are the volunteer soccer coach or 4-H advisor. On the other hand, no protection is provided if your volunteer activity is related to a business (chamber volunteer, union, trade, or professional association representative) or if you receive any compensation. Any legal action other than bodily injury and property damage is not covered (an exception: some homeowners policies cover personal injury - libel, slander, false arrest, false imprisonment, etc.).
You can also check for coverage under the organization's policy. Ask the organization's leadership for proof of insurance for general liability, directors and officers liability, and employment practices liability. Also check to see if volunteers are covered (named as additional insureds) under those policies. Other potential loss situations can include:
- Failure to examine documents signed
- Silence with respect to improper conduct of fellow officials
- Improper rejection of bids
- Failure to exercise diligence in management
- Incurring unnecessary expenses
Communities are fortunate to have so many volunteers donating their time in a host of different areas. This discussion is not meant to discourage any present or prospective volunteers, but rather to help individuals be well-informed, comfortable, and adequately protected when it comes to volunteering.
Umbrella Liability: Why have it? What is it? Who needs it?
Skyrocketing court settlements and medical costs can cause uneasy feelings about the adequacy of insurance protection. Liability insurance pays for injuries to others due to negligent acts by you or another covered person on your policy. Although the liability insurance provided under a home or auto insurance policy is adequate for most situations, in a few instances large lawsuit settlements do approach or exceed the limits of these policies.
An umbrella liability policy is designed to give you peace of mind by adding one million dollars (or multiples of $1 million) of protection to the liability limits of your home and auto insurance policy. *Should a judgment against you exceed the limits of that policy, the umbrella picks up the unpaid portion up to the umbrella policy limit.
Persons most likely to purchase an umbrella policy are:
- "Likely "targets" for a large lawsuit: professionals, business owners, property owners, higher income individuals, etc.
- Those who want greater peace of mind knowing that their life savings will be protected from a financially devastating lawsuit.
*The umbrella can also increase the liability limit for your boat, rental property, motor home, recreational vehicle, motorcycle, vacation home and others.