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Tag Archives: umbrella policy

When Do You Need an Umbrella Policy?

liability insurance

I recently got renewal documents in the mail for our umbrella policy. What is an umbrella policy and why on earth do we have one? Excellent questions! I can’t say  whether or not you need one, but here’s why we decided an umbrella policy made sense for us. What is an Umbrella Policy? No, it isn’t a policy to cover your umbrellas (HA), but extra coverage in addition to liability limits you already have on your vehicle or home insurance policies. In Colorado, the highest liability limits you can have on those are $300,000 per occurrence. If we were at fault in a car accident, anyone could sue us. Maybe the medical costs from an accident might be over  $300,000, or maybe we live in a small town where people know we own quite a few things and might have a little money. The umbrella policy also covers us if someone is hurt on our home or rental property. A few years ago, I also had the misfortune of having a former employee try to file a suit against me for a number of reasons. Her case had no merit and didn’t get anywhere, but if she had sued me ...

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Are You in the Habit of Wasting Money?

We recently received a bill for our annual post office box rental. We actually have a nice, secure mailbox at our house with a lock and key. All of our important mail comes there. We set up that post office box ten years ago when we were living in a temporary rental while building our house. The only thing that comes to the PO box is junk mail, and for some strange reason, a copy of Ebony magazine every month. Why on earth do we still have this PO box? It’s because of habit. Are there things you do out of habit that waste money? Are You On Autopilot? It’s very convenient to set up automatic payments. It actually saves money because you don’t have to worry about late fees or interest if you forget to pay a bill. However, there might be some things that you need to review and decide you’re getting your money’s worth before auto allowing that payment. Subscriptions-We subscribe to two publications, Money and a mountain biking magazine my husband enjoys (never paid a penny for Ebony). Between the two, they cost $20 per year, which I think is worth it. However, some people (my ...

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