One of the most important insurance policies you can buy is the personal umbrella policy, but many people are unaware they need one. This policy provides high limits of liability to protect you against a catastrophic liability loss. For example, a major car accident may injure numerous people or cause head injuries or death that will result in liability far in excess of the limits typically purchased in a personal auto policy. An umbrella policy sits on top of the auto and homeowners policies to provide higher limits of protection. In addition to providing higher limits, this policy normally pays for some losses not covered by the underlying policy, such as legitimate allegations concerning libel or slander.
Personal umbrella policies are growing in popularity. As the tendency to sue for damages rises and awards granted by the courts grow, the personal umbrella policy is increasingly seen as an insurance necessity, rather than a luxury. It is especially attractive because of its relatively low cost.
In particular, people with certain characteristics or who engage in certain activities have a higher-than-average need for a personal umbrella policy.
These situations include the following:
If you rent a home or an apartment you should consider an umbrella policy as well. In the event you accidentally start a fire while burning a candle, and the fire damages adjoining apartments. The tenant’s liability exposure could be enormous in such a situation.
Earlier this week I had an opportunity to listen to Brian Baffini, one of the top real estate coaches in the world, and Dr. Lawrence Yun, Chief Economist with NAR, discuss the real estate industry in 2020 and what to expect in 2021. Now, remember, this is coming from two guys that are supposed to know what they are talking about. But also remember they are talking nationally, and Texas normally fares better than the nation as a whole. In a snippet, 2020 was good and 2021 will continue down the same path.
Below are some of the highlights I jotted down:
Brian pointed to Jerome Powell’s, Chair of the Federal Reserve statement that the Feds would hold rates between 0% - 0.25% through 2023
Brain encouraged listeners to take advantage of the present and upcoming good years, 2021 - 2023 in preparation for what is to come. However, remember that there will come a time, in the near future, that the Piper will demand to be paid and inflation will come. So now is the best time to buy. Buy up to that home you have been wanting, buy the investment properties and/or that second home you have always wanted. But do not buy above your means. Buy and invest wisely.
One of the indicators of Brian’s optimism is our unemployment rate, he feels confident in the future, in spite of Covid.
Another indicator of his optimism is the rental market. Look where people are going. Leaving the big cities and moving to smaller, warmer locations.
Why the changes you ask? Just like 911 caused security changes worldwide, there will be many lingering or permanent ramifications from Covid. Some you may consider good, some not. How about remote workers? According to a Fox News report between 14-23 million employees plan to work remotely, either permanently or 3 to 4 days a week. That leads to a need for larger homes, and maybe a home farther out of town if a commute is reduced to once or twice a week.
If you are interested in seeing Brian’s full report, you will find a link below:
Brian Buffini's Bold Real Estate Predictions for 2021
To recap and summarize, the next 3 years are expected to be very good as far as real estate goes. Now is a great time to make the change you have been contemplating and/or dreaming about - Whether it is downsizing, upsizing, buying a second vacation home or investment properties. And I can help with them all. I am here for simple questions or complicated purchases. Let me know how I can best help you.
If you are thinking of investing, ask me about the 1031 Exchange Program – a phenomenal way to defer taxes.
Your Full Time, Professional REALTOR®,
Jerry Welch, CRS