Beware of co-signing Loans
or Leases for your kids!
When you co-sign a lease or loan for your kids or anyone for that matter you could be dragged into a lawsuit. We have had several claims that were not covered recently because the parents did not tell us they co signed a loan or lease.

Case Study #1. A parent co signed a lease for a rented home for their child. Due to kid's negligence, a fire caused $220,000 in damage, lost rents and legal defense. The parents were dragged into the lawsuit because they co-signed the lease. If the parents had advised us of the situation and if they had added the leased property to their homeowners and umbrella liability policy, they would have had liability coverage for legal defense and damages. Annual insurance cost to add the location would have been just $50!

Case Study #2. Parents co-signed an auto loan for their child. In addition to risking their credit, the parents are legally responsible for bodily injury or property damage to others, as co-owners of the car. They could have been added to the kids' auto insurance policy as the co-registered owner, at no cost. This would have covered the legal defense for the parents.

For help with these and any other insurance questions please feel free to call us at
650-328-1000 or Email Us!

Insurance by Allied Brokers
630 Cowper Street
Palo Alto, CA 94301
P: 650-328-1000
F: 650-324-1142
Open M-F 8:30-5pm
LIC# 0525309
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Chris Grammar
Steve Fox
Account Manager
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