Umbrella insurance basically doubles the existing liability coverage for your home and auto. That is the baseline for umbrella coverage.
Think of it as a second line of defense to protect your financial assets. It provides liability coverage over and above the limits on your Homeowners, Condominium, Renter's, Automobile, or Farm insurance policy.
What does Umbrella Insurance cost?
In most cases, the extra coverage is very inexpensive. In fact, Umbrella insurance can be the least expensive insurance coverage you could purchase in the event you need it. Some insurers even apply an additional credit to your homeowners policy when you purchase an umbrella policy.
Why would you need umbrella coverage?
In most cases, umbrella insurance is meant to protect an individual’s or family’s home assets. In today’s world, it can be easy to have damages that exceed policy limits. An umbrella policy provides additional liability limits starting at one million dollars up to five million dollars.
You don't have to be a millionaire to lose a million dollars in a lawsuit.
So, here are some situations in which an umbrella policy is specifically recommended:
If you have a farm, we highly recommend you consider an umbrella policy. With so much land, equipment and machinery the likelihood of accidents happening naturally increases. Umbrella coverage provides that extra protection you may need in the event of a lawsuit.
For Home Businesses
If you run a business out of your home and meet with clients or customers there, we recommend you have Umbrella insurance. What if someone slips and falls on the ice on your sidewalk? How much are you covered?
If you have a family, you should consider Umbrella coverage. For one, more people in your household means more people who could be found at fault in the event of an accident. Two, it’s more people to care for and you want to protect your family’s assets.
If you have a college-age student as a dependent, we recommend you have Umbrella coverage. For example, their college rental house burns down and the tenants are found at fault...the landlord can come after your assets.
If you have a new driver in your household, you should definitely have an umbrella policy. We all know new drivers have an increased risk of accidents.
Remember, umbrella coverage extends your liability limits. Consider your situation, your profession, the number of people in your household, etc. Maybe this extra protection would go a long way to protect your assets and give you peace of mind.
Do you want to know more about Umbrella Insurance? Contact us at Bruce Gardner Insurance Agency for more information and/or pricing.