If You Downsize, Consider Liability Insurance
27 Jan 2012 / By: Mark S. Eghrari / Category: Financial Planning, InsuranceAsset protection is a key consideration in estate planning. Most people seek to protect their assets through liability insurance – but what if you no longer have liability insurance in place?
A standard homeowners insurance policy typically includes some form of general liability insurance – like if a guest falls down the stairs or a friend slips in your kitchen. Liability insurance is designed to protect you from claims made when you are in some way considered to be at fault.
That’s great – but say you or your parents decide to move to a retirement community or apartment. Once the home is sold homeowners insurance is no longer in effect… but you could still be at risk of claims or even lawsuits.
Liability insurance policies tend to be relatively affordable. Shop around and take the time to fully understand the terms, the situations that are covered, and the limits of the coverage you will receive.
Downsizing is a great financial move for many people; plus it can make daily life a lot simpler. Just make sure you take care of the details: Sometimes downsizing in one area requires a little bit of upsizing in another.
Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.
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Tags: asset protection, estate plan, Liability insurance
