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4 Times an Umbrella Insurance Policy Could Save You

by Home Action News

4 Times an Umbrella Insurance Policy Could Save You

 

An umbrella insurance policy covers you above and beyond your regular insurance policy. It is meant to help you if some type of accident occurs and the coverage needed exceeds the amount of your regular policy. Basically, it covers you for an issue that you can be deemed responsible for. Let's look at some examples.

1. When Your Dog Bites

Our dogs are our friends, but sometimes they can act out of character for whatever reason, and we may not be able to control the situation or may not be around. This could lead to a dog biting another person on your property. If this results in bodily injury to that person and he or she files a claim, it could possibly exceed your regular policy. The person could take you to court as well, resulting in even more cost to you. An umbrella policy will give you the extra cushion to cover those expenses.

2. You Have the Coolest Jungle Gym in the Neighborhood, Until Someone Gets Hurt

Having the best jungle gym or the only pool in the neighborhood can be fun when you have kids and all their friends come to hang out at your house. (Such potentially dangerous delights are known in the insurance world as "attractive nuisances.") Then a kid gets hurt and the fun stops. While we hope that parents understand things happen when kids are playing, sometimes it is not that simple for the parent of the child who got injured. This can result in them filing a claim against you and, depending on the severity of the injury, the costs could well exceed your regular policy. Your umbrella policy will give you a cushion to fall back on.

3. Landlord Liabilities

If you own rental properties, then you can have liabilities tied to those properties. Sometimes they may be things that you haven't noticed, like a crack in the walkway. If something like this results in bodily injury, then it is possible that you will be held responsible and legal action could be taken against you. Just as in the other examples, the umbrella policy will cover you for additional expenses above your homeowner policy.

4. Be Careful What You Say About Others

You may have been told that if you do not have anything nice to say, then do not say anything at all, but sometimes it is hard to hold your tongue. In these cases, it is important to be careful about what you are saying, as well as about what audience you are saying it to, or through what outlet. Something negative said or written could be considered slander or libel by the person it is being said about. 

This could result in legal action taken by that person, and — you guessed it — an umbrella insurance policy will cover you.

Things You Might Not Think of When Refinancing Your Home!

by Home Action News

Things You Might Not Think of When Refinancing Your Home

 

Are you planning to refinance your home this year? If you're interested in lowering your mortgage payments, decreasing your interest rate or more, chances are you've probably thought about whether or not you should refi your mortgage. This lengthy process can have a number of advantages and disadvantages depending on your situation, so you'll have to weigh your options carefully before taking the plunge.

When you're ready to learn more about preparing for a new mortgage, here are six things you might not think of when refinancing your home. 

  1. You'll have to get an appraisal. You'll have to get an appraisal when refinancing your home, so keep your house's value and your savings in mind when determining whether or not you should pursue smaller monthly mortgage payments or a lower interest rate.
  2. You'll need to pay closing costs. You'll need to pay closing costs a second time when refinancing your home, so make sure you have an adequate amount of money saved to pay these upfront fees and any other costs associated with a mortgage refi. 
  3. You'll have to go through the same process. To a certain extent, it's like buying a house all over again, so think back to when you bought your house and make up your mind about whether or not you can dedicate enough time to the effort. 
  4. You'll need to get your credit checked. The bank is going to want to check your credit score when you're refinancing your home, so keep in mind that you won't be able to negotiate a better deal if your credit score is lower than it was when you were first approved for a mortgage. 
  5. You'll have to think about the interest rate. Are rates higher than they were when you first financed? Are they lower? Even a small difference can mean a lot of money over time. Take into account the full picture: the number of months you'll be paying the new mortgage and the rate you'll be paying compared with your current timeline and rate.    
  6. You'll need to live in your house a long time. Refinancing may not be worth it if you're planning to move in the near future. Figure out how long you plan to live in your current place and how much your closing costs will be before making the refi decision.  

These six things you might not think of when refinancing your home are important to take into account before you start shopping around for a new mortgage. Because a refi can lead to a number of benefits and costs down the road depending on the outcome, you'll need to prepare for every scenario before making a commitment. 

We're here to help, so if you think refinancing might be right for you, we can help you decide what your next steps should be.

 

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Contact Information

Photo of Frank Taglienti Real Estate
Frank Taglienti
Berkshire Hathaway PenFed REALTORS®
565 Benfield Road, Suite 100
Severna Park MD 21146
410-440-0824

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