Who Needs Umbrella Insurance?
An Umbrella insurance policy covers not just the policy holder, but also other members of their family or household. Personal Umbrella Insurance is designed to cover you when you exceed the limit on the underlying liability coverage in a homeowners, renters, condo, or auto policy. If you own rental property, umbrella insurance provides coverage beyond what your property policy covers. It is meant to protect you from large and potentially devastating liability claims or judgements. If your spouse causes a car accident, or your teen is sued for posting libelous comments online, your umbrella policy may help protect them also. If your teenager is not the best driver or you inure a 3rd party in a boating accident, you can sleep better at night knowing your umbrella policy will fully cover the injured parties above any underlying limits.
Personal Umbrella Policy Qualifications
As we mentioned above, an umbrella insurance policy is designed to add extra liability over and above a primary auto or home policy. The umbrella policy will only activate in the case that your underlying auto or home policy limits have been exhausted to their maximum. To be eligible for most standard personal umbrella policies you need to have and maintain a minimum liability limit on your auto insurance of $250,000 person/ $500,000 occurrence / $100,000 property damage. Typically, you will also need to maintain a $300,000 liability limit on any homeowner’s or property policy to qualify. According to Insurance information Institute, one in twenty homes file various claims each year.
What is covered by a Umbrella Policy?
In most cases, umbrella insurance protects you from:
- Injuries you cause in a car accident
- Injuries someone suffers on your property
- Property damage you cause in an accident
- Property damages your pet causes.
- Property damages a dependent or child causes.
- Attorney fees and other legal costs
Umbrella insurance also provides worldwide coverage in case you travel.
Do You Need Umbrella Insurance?
The real question you should ask yourself is, am I at risk of being sued? Everyone is, so in a sense, umbrella insurance makes sense for everyone. It is a small price to pay for the extra peace of mind. Umbrella insurance is inexpensive compared to other types of insurance, especially considering how much coverage it provides. The cost of an umbrella policy is relatively low, most $1 million policies cost $150 to $300 per year.
If you have questions, please let us know. We’re here to protect the things that matter most. Call us for your free quote today.