Posted by Most Insurance on December 19, 2013 No responses

We are asked all the time, “Do I really need an umbrella policy?”

Let’s back it up a little bit, because most people don’t really understand what an umbrella policy is to begin with. So let me explain that for you. An umbrella policy is kinda like what it sounds like. It is an umbrella that goes over all the rest of your policies that provides excess or extra liability insurance. That’s the main focus.

The neat thing about umbrella insurance is that you can also have it provide excess uninsured motorist on the auto side. On auto, and on boat insurance as well. Yes, I think you should have it. It is very important. In fact, I wouldn’t drive if I didn’t have an active umbrella policy. To me it’s that important.

It’s going to protect you if you have a home. Let’s say you have kids and you have their friends over and one of them might get injured. It happens all the time. This is going to provide excess liability insurance for you. I know you might say, well my kid’s friend’s parents, there not going to sue me. But the reality is, it happens. And for only a couple of dollars a day, in fact maybe even just a dollar a day, you can be protected from something like this happening.

Do you have a swimming pool in your backyard or a trampoline? Those are extra extra reasons why you might need an umbrella.

We in fact had a claim one time for one of our customers. A neighbor had jumped on their ATV, was riding it in their backyard, and almost cut off their head because they hit the clothes line. They then sued the owner of the ATV even though they were not given permission for using it.

The umbrella policy provided extra liability insurance for them. Here is the neat thing about an umbrella policy. It provides legal defense outside of the amount of insurance. Let’s say you have an umbrella at one million dollars. You’re going to have your defense cost for a lawyer outside of that being covered. So the umbrella is going to pay for your defense, on top of that limit. It is a very good thing to have.

On the auto side, an umbrella policy is important because you can have excess uninsured motorist coverage.

So if someone hits you who doesn’t have insurance or enough insurance, it’s going to provide that excess uninsured motorist coverage. Which is the protection for you medically, if your hurt, or you’re out of work because of an injury. You can actually make a claim against your own insurance for pain and suffering.

Say you were a triathlete, like I am, and you got in an accident. Unfortunately you could no longer do triathlons.  You literally could make a claim against your policy because of that pain and sufferings. So it is a very very important coverage to have.

And like I said, it is only a couple of dollars a day. Umbrellas come in one and two million dollars limits fairly easy. But they go up to five, ten, or even $100 million depending on what your need might be. I do heavily suggest it. Again, I wouldn’t even get in a car without having that coverage.

So I think you should talk to an independent agent like Most Insurance about getting an umbrella insurance policy. Have a wonderful day and be safe up there.

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