Do you want an umbrella policy? Have you seen advertisements for umbrella insurance? As a result have you ever wondered what it is or why you might need it? In this blog, we would like to dive into this coverage and help you make an informed decision!
What is Umbrella Insurance?
Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits and personal liability situations.
Why Do I Need It?
We live in a very litigious world and umbrella insurance is becoming more and more valuable. First it gives you coverage above and beyond your home and auto liability coverage. Second it is relatively inexpensive coverage. If you own your home and cars you should consider having an umbrella policy. Next I will share real life examples of when you will be very glad you have an umbrella policy.
Examples of when you want an umbrella policy in your insurance portfolio:
- Your dog runs out of your house and attacks your neighbors son who is playing in their yard. As a result his parents sue you to cover medical bills, lost future earnings and pain and suffering.
- Your daughter gets in a fight at school and sends the other child to the hospital. This results in her parents suing you.
- You cause a multiple car accident and you exceed your property damage, liability limits and medical limits.
- You serve food at a school function that you made at home. Several people get food poisoning and then they sue you.
- First you go out of town. Second your teens throw a party while you are out of town. Third there is alcohol at the party. Fourth one of the kids is arrested for a DWI on their way home and this results in you getting sued.
It is important to point out that an umbrella policy provides coverage to you and your family members.
What You Need to Know.
Like all insurance, umbrella insurance can vary in price and coverage. So please make sure you discuss your policy with your agent so you know your coverage. Typically you can get an umbrella policy that starts at 1 million and can go up to 5 million or more in liability coverage. They can cost as little as $150 and go up depending on your company and coverage. Umbrella policies are cost effective. You get a lot of coverage for a minimal cost each year. We hope none of the examples above ever happen to you, but if they do we want you to have peace of mind about your insurance coverage.
Umbrella insurance is relatively inexpensive because there are minimums you must meet for your liability coverage on your home and auto policies. You may find yourself in a position where you might need to increase coverages on your home and auto. Make sure you factor that cost into your decision. Keep in mind that sometimes increasing liability limits on your home and auto do not have too much of an impact on your premium. (Note: Always ask for a quote with higher limits when you are getting insurance. You might be surprised at how little a lot more coverage costs.) If you need a quote, click here.
We highly recommend you have an umbrella policy if you have a homeowners and an auto policy. You have too much to lose to not at least consider an umbrella policy. When you are sued and the amount goes above your liability limits you are responsible for that amount. An umbrella policy is there to give you coverage above your home and auto liability limits. Let us be clear it is not a required coverage, just a recommended one.