Other helpful information.
- A $1 million Umbrella policy, in most cases, is less than $200 for an annual policy.
- Customers may be eligible for a discount on their homeowners policy when they have an umbrella.
What instances use an umbrella?
Nearly 85% of Insurance companies payments on umbrella claims are related to auto accidents, and over the past 12 months, 30% of those claims involved a pedestrian, motorcycle or bicycle. Below are a few examples of recent claims, all of which required a payout of more than $1 million. That's much higher than any auto policy limits, so consider what might be right for you. Some companies offer limits on umbrellas, up to $5 million, but most clients choose the $1 or $2 million policies.
- Customer hit gas instead of brake by mistake and ran through the front of a restaurant, seriously injuring several people.
- Customer didn't see a motorcycle and pulled out, causing the motorcyclist to hit the side of the customer's car.
- Customer's son was allegedly driving under the influence and hit a bicyclist.
- Customer accidentally set a fire in his apartment which spread to other units.
Who could benefit from an umbrella policy?
- Drive a car or let someone else use their car.
- Host dinner parties or other gatherings.
- Participate in carpools or other group activities.
- Own a home, rental properties or multiple residences.
- Have a young driver in their household.
- Have a pet that has a history of biting or destroying property.
- Have a child that caused damage to school or a friends property.
- Get into a serious accident where you are at fault.
- Have a friend or children to your home and they get hurt on your property.
An umbrella insurance policy is extra liability insurance. It is designed to help protect you from major claims and lawsuits and as a result it helps protect your assets and your future. It does this in two ways: 1) Provides additional liability coverage above the limits of your homeowners, auto and boat insurance policies. This protection is designed to kick in when the liability on these other policies has been exhausted. 2) Provides coverage for claims that may be excluded by other liability policies including: false arrest, libel, slander and liability coverage on rental units you own.
What is an umbrella policy?