April showers….time to start thinking about an umbrella! Wait! We’re not talking about THAT type of umbrella; we’re talking about an umbrella insurance policy!
What is an umbrella insurance policy?
- An umbrella insurance policy provides third-party liability coverage in excess to your underlying primary insurance policies. An umbrella insurance policy may also provide additional coverages that are not included on your primary policies. These additional coverages could include libel, slander, false arrest, wrongful eviction or invasion of privacy.
How does an umbrella liability insurance policy work?
- If you are involved in a lawsuit, your primary insurance policies, such as property, auto and marine will be the first to respond to the claim. In the event that your underlying limits are exhausted but the settlement has not been fulfilled, your excess umbrella policy will provide additional coverage up to the limit on your umbrella policy.
Why do I need an umbrella insurance policy?
- As our society continues to change, lawsuits for personal liability are on the rise. A $1,000,000 limit does not go as far as it used to. More than ever, it is important to assess your exposures and ensure your coverage is adequate. Be sure to notify your insurance broker of any potential liability exposures and make sure you a properly protected. Exposures could include, but are not limited to, the ownership of a business, coaching/participating in team sports, sitting as a member on a board, or renting properties. In short, having an umbrella policy gives you financial security.
Although the premium associated with an umbrella varies based on an individual’s exposures, the price is more reasonable than you may think! Purchasing an umbrella insurance policy will give you piece of mind that you are protected so you can sleep sound at night.
Contact us today for more information!