Other types of insurance

In addition to medical, home, and auto$-$insurance policies, you can choose to purchase additional policies to protect against other types of losses. Consider Patrick, a lawyer with a standard HO$-1$ policy with $$400,000$ of insurance on his home, an auto insurance policy with liability limits of $\frac{100}{300}\frac{?}{50},$ and a professional liability policy with a $$100,000$ limit$.$ His daughter recently took a course in personal finance and wants to make sure her father is adequately protected from potential losses. She knows her father has all the standard policies, so she reviews a number of situations that aren't always covered under standard policies. For each of the following scenarios, indicate the type of coverage$-$one Patrick already has or one he should purchase$-$that would protect against the loss described.

How to Protect Against This Loss

A flood destroys the basement of the home, causing $$20,000$ in damage.

The cell phone he uses for work matters is stolen when he accidentally leaves it at a restaurant.

He fails to extinguish his campfire before leaving the site; the fire gets out of control and causes $$56,000$ of damage $($both to people and property$)$ in the neighboring campsite.

In addition to these policies, he is considering an umbrella liability insurance policy with regarding umbrella policies are true? Check all that apply.

Buy comprehensive personal liability insurance

Buy floater policy

Already covered under $HO-1$

Already covered under professional liability policy

Buy flood insurance policy

The cost of the additional umbrella policy is high and is only worth that cost if Patrick is wealthy.

If Patrick causes an automobile accident and the medical bills for the other driver and his or her passenger are $$110,000($ $$80,000$ and $$30,000,$ respectively$),$ the umbrella policy will cover $$10,000$ of the cost.

If Patrick is sued by a client and must pay $$110,000$ in damages, his umbrella policy will pay the $$10,000$ above the limits of his professional liability policy.