Umbrella Policies provide excess liability coverage. It’s coverage that sit’s on top of the liability coverage of your other policies. It comes into play if you ever find yourself on the wrong end of a lawsuit and you reach the end of your limits on your auto or homeowners policies.
Umbrella policies insure against the worse case scenario. If someone falls on your property and sues you, or if you cause an accident and there is significant injury or death to someone as a result of it, or even if your kid says something untrue about someone else on social media. An Umbrella policy would prove it’s value a hundred fold in any of those cases.
The last reason I gave may be the most frightening of them all. Kids are on their iDevices constantly these days. And most of them are on Instagram or at least communicating via text. Let’s say that your child, Johnny, makes up something about me that he knows is not true. Something awful that would damage my reputation. The rumor gets around to the community and now people are unsure what to believe.
I would have no choice but to protect my name. I would need to file a lawsuit against you, the parent. Your Homeowner’s policy would deny coverage but an Umbrella policy would protect you from this circumstance.
Here are a few other things to know about Umbrella Policies.
They are fairly inexpensive. A $1 Million policy cost as low as $250 to $400.
Young drivers, rental properties, multiple vehicles will increase the cost.
Umbrella policies help pay for your legal fees and settlements above your regular insurance limits. Your assets may be at stake without it.
Liability risks are everywhere. Do you have a teen Driver? Do you host parties? Do you have a pool, hot tub or boat? Do you have a housekeeper? These are all risk factors.
An Umbrella policy is most useful for protecting your net worth.
Our agency recommends that all homeowners consider having a $1 Million Umbrella policy. If you have a pool or another risk that I stated above than you should increase that to $2 Million.
Contact your agent and ask for a quote to add an Umbrella Policy. It’s usually best to get the policy with the same carrier that you have your auto and homeowners policies to take advantage of multi-account discounts.
Please feel free to contact me with any questions or concerns you may have.