Umbrella Coverage

While some of us hear the word umbrella and instantly think of the necessary accessory for the wet weather, those in the insurance industry see an “umbrella” as a way to protect clients, businesses and families every day.

What is umbrella insurance?

An umbrella insurance policy is a separate policy - really an extra layer of protection - for things a policyholder does that may cause injury to someone else or their property. An umbrella policy responds when a significant claim occurs, providing additional money above the money available in a homeowner or auto insurance policy.

Often times, the most significant claims come from car accidents, dog bites, boating accidents, rental properties or even slippery driveways. A home or auto insurance policy can generally provide up to $500,000 for damages a policyholder does to someone else. While that may sound like a lot of insurance, the increased cost of medical treatments is very real. It is no longer uncommon to see first day emergency transport, surgeries and treatments totaling hundreds of thousands of dollars.

These costs diminish the protection available within a homeowner or auto policy. It is not an uncommon occurrence for those involved in accidents to find the coverage available in their auto policy is exhausted, and the umbrella policies saved them from selling property, homes or retirement assets to pay claims.

How much does umbrella insurance cost?

In most cases, umbrella policies are quite affordable. For as little as $175 dollars a year, an umbrella policy can protect you, your family and your assets from a number of liability risks.

Umbrella coverage typically ranges from $1 million to $5 million above your other personal liability limits, including your auto or home policies. Insurance companies will usually require your auto policy and/or homeowner’s policy in order to purchase umbrella insurance.

What else can an umbrella do?

While some insurance companies only offer additional amounts of liability on their umbrella policies, other companies provide additional coverage within the umbrella policy, known as “uninsured or underinsured motorist coverage.”

This coverage helps when you’re involved in an accident where someone else is at fault but does not have adequate insurance to pay for the damages. In this case, your umbrella policy carrier pays the claim as if it were the other party’s insurance company.

While bicycle clubs often make recommendations for members to buy this coverage, they are not the only ones in need. Imagine being hit by a driver that has no insurance and you or a family member is critically injured, not working and needing additional care for months or years? This coverage provides up to $1 million in limits for our clients and their families at a cost of only about $100 per year!

Working with an independent insurance agent who understands these requirements and has access to multiple carriers is the best way to ensure you are properly protected rain or shine.

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