A FEW LEGAL NEW YEAR’S RESOLUTIONS FOR 2015 THAT YOU SHOULD CONSIDER, PART II.
Yesterday, I posted some “legal” New Year’s resolutions for you to consider. Here are a few more:
- If you own a home, make sure that you have adequate home insurance. This insurance protects you in many respects. First, it protects you in the event of a burglary, fire or other casualty loss. Make sure that your policy covers the replacement value of your home and possessions. Some policies only cover the amount you paid, which can be a lot less. Second, a home insurance policy protects your assets from being taken away in a court case. If you are sued for an accident that occurs on your property, insurance will generally pay for the claim. It will also pay for a lawyer to defend you. Otherwise, you would have to hire your own lawyer. That can be quite expensive. If you lose the case, your assets could be seized to pay compensation to the victim. Buy as much liability coverage as you can afford. An “umbrella” policy can reduce your costs for such coverage.
- Another New Year’s resolution for homeowners: make sure that there are no encroachments on your property. An “encroachment” takes place when someone else is using your property. For example, if your neighbor puts up a fence that is over your property line. Under the law, after a long period of time, you could actually lose ownership of the part of your premises being encroached upon. The encroachment does not have to be a fence. It could be a structure that someone wrecks on your property. For example, if your neighbor puts his toolshed over your property line.
- If you rent an apartment or home, you still should have renter’s insurance. The same issues that apply to a homeowner apply to you. An accident could occur in your residence. You do not want to risk your assets. Even if you have no significant assets, if you are sued and lose, your wages may be garnished.
(To be continued)
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