Purpose of a personal umbrella: provide excess coverage “in addition to” or “over the top of” the primary coverage– auto, home, boat, rental property… i.e. umbrella coverage. When a covered loss occurs and subsequent lawsuit…your primary coverage, (home, auto, etc), pays out first, and the umbrella pays for expenses above the primary coverage limits.
Example: You cause an auto accident and injuries/death occurs—your auto policy initially pays for all losses. Injuries + lawsuit fees of the accident are greater than the limits on the auto policy…what now…you are legally responsible for all injury/damage caused! If the damages become higher than the limits of the primary policy, the umbrella policy pays those excess damages up to the preset amount of the umbrella coverage, (typically 1-2 million dollars), keeping your home & assets from being taken.
Who needs an umbrella policy? In today’s lawsuit happy world—professionals, high income people, business owners, etc., all are subject to the whims of the legal arena. Umbrellas are extra protection for people who have worked hard for their home, their pensions and other assets…and don’t want a smooth talking lawyer to take everything they have worked for all those years due to one mistake.
How do I get an umbrella policy? Umbrella policies are quite inexpensive but require certain minimum requirements on the underlying policies…your auto, home, boat, etc. Once your personal limits are raised to the minimum requirements–the cost of an umbrella, (varies due to underlying coverage and/or needs), typically ranges from $160-$270/year for a 1 MILLION dollar policy.
Call us with your questions or concerns…we can research your current scenario to determine the need and cost of an umbrella policy for you and your family.