Should You Have an Umbrella Insurance Policy?

Happy Memorial Day weekend! I thought with summer approaching, now would be a good time to bring up an umbrella insurance policy.

Many people don’t know about umbrella insurance policies. An umbrella insurance policy kicks in after your limits are exceeded with your home or car insurance. What is it and what does it cover?

Let’s say the porch in your home collapses and several people who are at your home for a party are injured. It’s determined that you’re liable for $400,000 in injury expenses, plus the injured parties are collectively claiming around $250,000 in lost earnings for their extended period of time out of work. That means the total amount you’re on the hook for is $650,000.

But what if you only have $500,000 in personal liability coverage in your homeowners policy? If you didn’t have umbrella insurance, you’d have to look elsewhere for that additional $150,000. Having an umbrella policy makes up that difference of $150,000 for you, so you don’t potentially have to pay it out of pocket.

What types of things does it cover?

1) Injury to Others (dog bites, etc.)

2) Damage to Other People’s Property

3) Slander or libel cases

4) Legal Fees

5) Tenant damage or injury

If you have rental properties, it’s a really good idea to have this policy. If you have a pool or a trampoline on your property, it’s also a good idea.

You can buy one of these policies for up to $1 million dollars in additional coverage for only a few hundred dollars a year.

Talk to your insurance provider today about this. If you need a referral for an insurance guy, please e-mail me! I have some wonderful agents that I work with.