Does Motorcycle Insurance Cover Other Riders?

The question of whether or not other riders are covered by your motorcycle insurance while on your bike is a tricky one and depends a great deal on the specifics of your policy. Since all insurance companies are different and each motorcycle policy may have some unique provisions, the bottom line advice is to consult with your insurance agent before you take on the responsibility of having someone at your back as a passenger on your bike or before you allow someone else to ride your motorcycle on the road.

Lending Out Your Bike

Letting someone borrow your bike, even just for a quick trip around the block, may pose some risks of which you should be aware. Like car insurance, which typically follows the car for which the policy was written, motorcycle insurance may very well follow the bike, but not necessarily.

First of all, make sure that the person to whom you've lent your bike is licensed to operate a motorcycle here in North Carolina. If someone borrows your bike and has an accident where they damage someone's property or cause someone injury and they're driving illegally, there's a very good chance your insurance company won't allow a claim.

If they are properly licensed to operate a motorcycle and are found to have caused the accident, your motorcycle liability coverage may help pay for damages and/or injuries for all parties involved. Again, specifics depend on your policy and you should learn what's covered ahead of time, before you lend out your bike.

Coverage For Passengers

If you plan on having passengers on your motorcycle it might be a good idea to look into what's called passenger liability coverage. Many insurance companies offer this type of motorcycle insurance. Other companies may automatically cover injuries caused to your passenger under the liability provisions of your motorcycle insurance policy.

If you're involved in an accident that's deemed to be the fault of someone else, injuries to you and your passenger plus damage to your vehicle should be covered by the at-fault driver's liability coverage. If that person is either uninsured or under-insured, however, you'll could be totally out of luck. To cover for this potential scenario, you should consider obtaining uninsured/under-insured motorist's coverage. Consult with your insurance agent to explore all that's available to make sure you, your passengers and your motorcycle are protected to the degree with which you're comfortable.

Some insurance company discounts are automatic, while many you won't know about unless you ask. Raising your deductible or buying a car with anti-theft technology will likely get you an automatic discount, but how about a student getting good grades?

Considering Umbrella Insurance: 5 Things to Know

Umbrella insurance is a form of liability coverage that works in conjunction with your homeowners and vehicle insurance, taking over when the liability limits of those policies have been exhausted. It's a specialized form of excess liability insurance designed to protect your assets in the event that you're facing a high dollar liability lawsuit.

Here are some things to keep in mind when considering buying an umbrella insurance policy:

1. In order to take out an umbrella insurance policy, you must first already have a standard insurance policy in place - homeowners coverage for your house and vehicle insurance for your vehicle(s).

2. Most umbrella policies start with a minimum payout limit of one million dollars, which should cost you somewhere around $200 per year (more or less). You should be able to add another million dollars in coverage for an additional $150 or so, with each extra million in coverage costing even less than the previous million.

3. Since umbrella coverage is designed to protect you from high dollar liability losses, if you have minimal assets you likely don't need this coverage and can depend on the liability coverage of your auto and home insurance policies. If you have a net worth of a million dollars or more, however, you should definitely consider carrying an umbrella policy of $1M or more. Think about what would happen if you're found to blame for causing a ten car pileup on the freeway. Your liability could top many millions of dollars, and without the protection of an umbrella policy you could lose everything you've worked your whole life to accumulate.

4. If your child gets into a fight at school and causes serious physical damage to the other kid, his family may very well sue you. If your son throws a party at your house while you're out of town, alcohol is served and one of the party goers has an accident while driving home, his or her parents will probably sue you too. A benefit of umbrella insurance is that it covers you and everyone in your immediate family, so you're protected.

5. Best advice is to obtain an umbrella policy equal to the amount of your total net worth as a minimum or, better yet, one and one-half times your net worth to allow for growth of your assets. If you're unsure about the need, better to be safe than sorry!

5 Things Your Homeowners Insurance Won’t Cover

Homeowners insurance is something that's required to be in place for just about every homeowner with a mortgage and something that even those who own their homes free and clear shouldn't be without. Knowing exactly what's covered by your homeowners insurance policy, however, is not required, and many may not have completed the due diligence needed to learn just what's protected and what's not. You may falsely believe that your home policy protects you from any type of peril or damage your home may suffer.

While your coverage may, indeed, protect you from a long list of hazards that could possibly befall your home, there are plenty of potential hazards a standard homeowners insurance policy doesn't cover and you should be aware of these. The best advice is to thoroughly read your policy when you receive it and to consult with your insurance agent if you have any questions or confusion regarding the details of your coverage.

What is Usually NOT Covered

The following is a list of common, unexpected and expensive damage scenarios likely not covered by your standard homeowners policy. Bear in mind that, in the insurance business, just about anything CAN be covered if you're willing to pay the price required for the coverage. This, however, takes implementation of a special, custom designed policy or series of policies. Bear in mind the following when considering your coverage options.

1. FLOODING - some homeowners mistakenly believe their homes are covered for flood-related damages when, in fact, nearly all standard homeowners policies exclude floods from coverage protection. Homeowners desiring flood coverage must add an additional policy to their insurance portfolio. In this case, coverage can be obtained through FEMA's National Flood Insurance Program.

2. EARTHQUAKES - these disasters are also typically excluded from standard homeowners coverage. A separate policy must be purchased to cover for this peril.

3. SEWER BACKUPS - damage caused as a result of a sewer backup is excluded from most homeowners policies.

4. CASH - large amounts of cash stolen or destroyed in your home usually won't be covered. Other high-priced valuables such as collectibles, artwork or jewelry are typically covered only within a fairly low limit.

5. BURST WATER PIPES - while water damage caused by burst pipes may be covered by your policy, the cost to repair or replace the pipes probably isn't. If the broken pipes are the result of negligence, the claim may be denied altogether.