Irwin Kramer: Your homeowners insurance policy not only protects your home in many cases it can protect you very far from home.
John Doetzer: Because the liability coverage is comprehensive in nature. It is not tied to a specific location, it's tied to you. You are the named insured under the policy. You and any family member living with you at the time the claim occurs. You are away in another city and it starts to rain and you open your umbrella and you happen to open up and poke somebody in the eye. Your homeowners liability policy provides coverage for that potential bodily injury incident.
Irwin Kramer: Speaking of umbrellas, you might want to buy an umbrella policy as well.
David Pisanic: An umbrella policy is extra coverage that you can buy, that protects you in case there is a large loss. It's also called excess coverage.
Irwin Kramer: It can protect you rain or shine, in the event that a real catastrophe occurs.
David Pisanic: And if that really bad thing happen then that person would be coming back against me, against my assets and asking me to compensate them. So I need more insurance. I am going to put an umbrella on top of what I have already got. So I make sure that I have got enough coverage in case that really catastrophic bad thing happens, to protect my assets. So the more that you have to protect obviously the more insurance it would behoove you to buy, unless you want to just roll the dice and whatever happens, happens.
