Umbrella

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 such as your auto and or home insurance policies.

It is different from excess insurance in that excess insurance coverage only goes into effect only when all underlying policies are totally maxed out, 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 protects more of the clients assets than just a single underlying policy.

For example, an umbrella policy is pure liability coverage over and above the coverage afforded by the regular policy, and is sold in increments of one million dollars.

The term “umbrella” is used because it covers liability claims from all policies underneath it, such as auto insurance and homeowners insurance policies.

For example, if the insured carries an auto insurance policy with liability limits of $500,000 and a homeowners insurance policy with a limit of $300,000, then with a million dollar umbrella, the insured’s limits become in effect, $1,500,000 on an auto liability claim and $1,300,000 on a homeowners liability claim.

Umbrella insurance provides broad insurance beyond traditional home and auto. It provides additional liability coverage above the limits of homeowner’s, auto, motorcycle and boat insurance policies. It can also provide coverage for claims that may be excluded by the primary policies. These may include, but are not limited to:

  • False arrest
  • Libel
  • Slander
  • Invasion of privacy

For the cost of a pizza or two you could protect yourself and your family with an additional 1 Million dollar umbrella.  Package discounts available to help keep this very important coverage cost effective.

If you speak to a good lawyer, they will tell you that everyone should max out their auto and home liability coverage and obtain an umbrella policy at minimum.

Call us today to see how cost effective these policies are!