Umbrella Insurance Coverage
What is umbrella insurance?
Just as an umbrella shields you from the rain, umbrella insurance does much the same. An umbrella policy offers coverage beyond your auto, home/condo or renters insurance policy, helping to protect you from claims that exceed those underlying policies' liability limits. We ask that you have an auto policy with our company in order to be considered for an umbrella policy.
What does umbrella insurance cover?
Umbrella insurance is designed to cover the difference between the maximum amount of your auto, home/condo or renters insurance policy liability limit and the actual cost of a claim.
Here is an example of how umbrella coverage may come into play:
- While driving on the highway, you accidentally hit a minivan carrying five passengers. Your auto insurance policy liability limits will pay a maximum of $250,000 per person and $500,000 per accident. In this case, all five passengers are injured with claims totaling $750,000. Your auto insurance policy will pay $500,000. But, what about the remaining $250,000? If you have an umbrella insurance policy, it will cover the additional $250,000 not covered by your auto insurance policy.
In addition to car accidents, umbrella insurance may provide additional coverage if a guest is injured in your home, if you are named in a personal lawsuit and need to hire a defense lawyer, or if you damage someone's reputation by libel, slander or defamation of character.
You may choose umbrella coverage limits from $1 million to $5 million.
Coverage not provided by umbrella insurance
While umbrella coverage may help protect you in a wide variety of circumstances, not all claims are protected by an umbrella insurance policy. Among the claims umbrella insurance does not apply:
- Intentional damage
- Business-related damage
- Claims made as a result of owning, maintaining and using recreational, non-traditional vehicles like airboats, jet skis and aircraft
- Damage to your own property
Do I need an umbrella policy?
To help you decide whether you need an umbrella policy, consider the following:
- If someone is injured in a car accident in which you or insured family members were at fault – or if a guest is injured at your home – and your underlying policy limits are exhausted, you could be sued for the outstanding amount, which could put your retirement funds, investments, savings and future earnings at risk.
- If you own a pool or trampoline, the risk of injuries at your home increases substantially. Do you have enough in savings to pay for a claim that exceeds the liability limits on your home policy?
- When traveling in a foreign country or on vacation, umbrella insurance may provide coverage if you have an accident.
- Umbrella insurance may cover you if you are sued due to a decision you made as a member of a nonprofit board or a comment you made in social media.
Umbrella insurance helps protect your assets and provides additional peace of mind.
Get a Free Insurance Quote
Give us a call to discuss your umbrella insurance options. Keep in mind, we typically require that you have an active auto policy with our company in order to have umbrella insurance. Call today – 888.404.5365 ext. 2225.