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Even for those who don’t have umbrella liability insurance coverage, homeowners insurance policies normally provide general liability coverage.  This insurance will help protect your assets if a guest is injured in your home or your dog bites someone, for example.

However, when you move to a retirement community, you have usually just sold your house.  No home equals no homeowners insurance.  Then what happens in the event of a lawsuit?  Your savings could be at risk.  Liability insurance not only pays claims against you, but also pays for your legal defense.

I have been involved in a case where a neighbor sued two CCRC residents because she was attacked by a third party in their apartment.  There has yet to be a trial, but the legal fees are quickly mounting.  In this case there is insurance, luckily.

So, when you or a parent moves to a retirement community, don’t forget about purchasing insurance to cover potential liability.

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