Umbrella Insurance Fills Coverage Gaps
What is Umbrella Insurance?
Umbrella insurance refers to a liability insurance policy that protects the assets and future income of the policyholder above and beyond the standard limits on their primary policies. Umbrella Insurance is distinguished from excess insurance in that excess coverage goes into effect only when all underlying policies are totally exhausted, while umbrella is able to “drop down” to fill coverage gaps in underlying policies. Therefore, an umbrella policy can become the primary policy “on the risk” in certain situations. The term “umbrella” refers to how the policy shields the insured’s assets more broadly than primary coverage. Typically, an umbrella insurance policy is pure liability coverage over and above the coverage afforded by the regular policy, and is sold in increments of one million dollars.
Do You Have Enough Liability Insurance?
Imagine if your dog were to bite a neighbor’s child. Or if there’s an accident on your rental property. Or a fire in your condo spreads to other units. What would happen if you or a family member missed a stop sign and struck and killed a pedestrian? If any of these things happened to you, there’s a good chance your current liability limits wouldn’t be adequate to protect your assets—or your future earnings.
Lawsuits Are Not Limited to Your Net Worth
A lot of factors determine the amount of coverage you need. Your financial status, lifestyle, and existing coverage are all relevant, but in liability lawsuits, judgements can exceed net worth. Give us a call today to determine what’s right for you.
Liability Insurance Starts When the Others Stop
Once the liability limits are exhausted on your home, auto, or other policy your Umbrella policy takes over and provides a second layer of protection of at least $1,000,000. Higher limits are available.
Broad Coverages
An umbrella insurance policy also pays some claims not covered by your home, auto, or other underlying insurance. The policy covers not just you but your spouse and all family members living in your household anywhere in the world. Legal defense fees are also paid.
