Umbrella Insurance

Staying prepared with Umbrella Insurance 

When it comes to unexpected claims or accidents, your average home or auto policy may leave you with small gaps in your insurance. 

What is umbrella insurance?

The term umbrella, is used quite literally when referring to this type of insurance. This policy acts as an umbrella that provides protection over your insurance policies in the case of any financial insecurity or incalculable events. 

It is important to know that umbrella insurance does not cover: 

  • Your own medical expenses
  • Losses to your property

What this insurance policy DOES cover depends on how you set it up, and what you feel you need covered. Umbrella insurance will apply to: 

  • Injuries you cause in a car accident
  • Injuries someone suffers on your property
  • Property damage you cause in an accident
  • Property damage your pet causes
  • Property damage a dependent or child causes
  • Attorney fees and other legal costs

Although your current policies may seem to cover everything you need covered, this may not always be the case. Umbrella policies tend to protect beyond the average insurance policy by providing additional coverage you may not initially think of. Umbrella usually travels with you, so you are always protected. 

Since the terms of umbrella insurance policies will vary, depending on insurance companies and your own personal needs, a qualified insurance agent from our firm is the best person with whom to discuss the benefits, restrictions, and coverage from each carrier they represent.

Aren’t people with a lot of assets the only ones who need umbrella insurance?

Actually, anyone with a job, who expects to keep the income they earn, could benefit from having an umbrella insurance policy.

What would happen, for example, if someone made a delivery to your house, slipped on a sidewalk recently wet by your sprinkler system, and suffered severe head injuries from the fall. They will sue you, of course.

Your homeowners insurance kicks in and pays up to its maximum limits. But the jury finds that you are responsible for an extra $500,000 over your homeowner’s limits.

Ask yourself: How long would it take you to pay that off with your weekly paycheck?

Umbrella insurance covers the amount that exceeds your homeowners coverage, usually up to $5 million, sparing you from a financial nightmare, along with paying the attorney to help you survive it.

The price of umbrella policies

Relative to the amount of protection you get, umbrella insurance is highly affordable. Especially since it’s unlikely you will ever have to make a claim against it. So, your specific cost will be determined by:

  • The amount of coverage you purchase
  • Your insurance carrier’s provisions
  • Your risk profile and driving record

You may save even more money by purchasing umbrella insurance from the same carrier who provides your home and/or auto insurance-check with us to make sure.