“Since when do people insure umbrellas?” Perhaps that thought ran through your mind the first time you heard the term, “umbrella insurance.” Actually umbrella insurance may be one of the least understood policies consumers purchase. Basically people purchase the coverage because their agent recommends it. Trusting your agent is important, but it’s equally important to understand the insurance yourself.
So where so we start with umbrella insurance? Well, from the beginning! A simple definition for umbrella insurance is as follows: Coverage for personal injury or property damage for which you are legally responsible.
For this policy to come into play, your claim has to meet one of these stipulations:
It’s important to remember that umbrella insurance is a second layer of insurance above and beyond your home or auto liability (hence the term, “umbrella”). As stated in the second stipulation, the underlying limits must be used before the umbrella kicks in.
Umbrella insurance is important because it fills gaps that your home or auto liability may leave through exclusions. It also offers liability coverage beyond your underlying limits. There are other important benefits to the umbrella. The insurance company will:
When might you use an umbrella? Here are some examples:
From the above examples, you can see that lawsuits are a major reason to have an umbrella. We all know that large settlements are not the exception these days! An umbrella policy really protects all that you’ve worked hard to achieve - your home, cars, perhaps boat or cottage. If you are found liable and a judgment is awarded against you, you could quickly lose all your possessions. The attorney fees alone can wipe out some people’s savings! An umbrella policy can prevent such devastation.
Umbrella policies are easy to purchase if you already insure your home and auto with us. We can easily work up an individual quote for you to consider---call us!