Umbrella

Knowing How An Umbrella Policy Can Help You

Having the right insurance policy can help protect yourself, your family, and your property. If you find yourself in a situation where the basic policy is not enough, and umbrella policy can be beneficial to help cover extra costs.

A personal umbrella policy is a type of insurance that provides liability coverage over and above your automotive or home owners policy. So, if your liability coverage is not enough to pay for the damages of an accident you cause or a visitor’s injuries on your property, a personal umbrella insurance policy kicks in right where your underlying policy’s coverage left off. An umbrella policy could provide the additional coverage you need so that you do not get stuck trying to pay the remaining balance yourself. This extra policy could help protect your bank account, home, and other personal property.

In most cases, personal umbrella policies are available in million-dollar increments, from $1 to $5 million. While an umbrella policy is not required, it may offer increased protection in the unfortunate event of an accident. No matter if you have questions about your existing policy, or any other insurance policy, make sure to contact us. We can review with you the different options you have, and recommend what type of insurance policy is right for you.

What is an Umbrella Policy?

A personal umbrella policy can be a good option for you. It is a type of insurance that will provide liability coverage over and above the auto or homeowners policy. If the liability coverage is not enough to cover the damage of an accident you cause or and incident on your property, a personal umbrella insurance policy kicks in right where your other liability has been reached. By having an umbrella policy, you can be protected when your other insurance is not enough. An umbrella policy provides additional coverage or excess liability above the limits of your basic policies. It can protect you from bodily injury liability claims and property damage liability claims. Umbrella policies also provide a broader form of coverage and can help cover legal fees, false arrest, libel, and slander.

Your umbrella insurance can come into play if you are found liable and need to pay damages, or if you are sued and need to pay for your legal defense, even if the result is that you are not found to be responsible. An umbrella policy only pays once your basic liability limits have been exhausted or the claim is excluded from the basic liability coverage. The claim will be made against you, the policyholder, on behalf of the wronged party. Then your insurance company may pay the settlement amount up to the limits of your coverage. If the settlement amount exceeds your coverage limits, you are responsible for paying the remaining amount out of pocket.

When choosing your coverage limits, there are some things you should consider. Consider the risks that you might face. Consider risks as a homeowner or renter, the risk of causing an accident during your work commute, and any potentially dangerous activities you participate in that could put those around you at risk. Also remember to value the assets you have. These include properties, possessions, stocks, bonds, savings and retirement funds. The more assets you have to protect, the higher the umbrella policy limit you should consider. Since liability lawsuits can results in loss of both current assets and future income, consider potential loss of future income. Even if you have a few assets to protect, you may want to consider the long-term ramifications of a serious claim.

If you have any questions about your current insurance policies or other ones, make sure to contact us. We can advise you on the options you have, as well as recommend the policies that are beneficial for you.

Understanding Umbrella Policies

When you have an insurance policy, you will want to choose an option that is best for you, your family, and the possessions. Make sure to contact us and we can advise you on the right insurance policy to invest in. We can also advise you if an umbrella policy can be beneficial.

If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for your attorney’s fees, up to a limit set in the policy. However, you may want to have an extra layer of liability protection. That is what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander. For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Since the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. If you are unsure how much is covered with the umbrella policy, make sure to contact us and we can advise you on the options you have. No matter if you have a question or concern about auto, life, health, or home owner’s insurance, it is recommended to talk to us so we can recommend what the best policies are for you and your family.

Know What an Umbrella Policy Is

A personal umbrella policy, also know as PUP, is a type of insurance that provides liability coverage over and above your automobiles or homeowner’s policy. So, if your liability coverage is not enough to cover the damages of an accident you cause or an incident on your property, a personal umbrella insurance policy kicks in right where your other liability underlying limits have been reached. An umbrella policy can protect you when your automobile or homeowners insurance isn’t enough.

How the Umbrella Policy Protects You

To better understand how a personal umbrella policy works, here is an example. If you are at fault in a car accident that injures another driver, your regular automobile insurance will cover the other driver up to the limit you selected, say $250,000. But what happens if that limit is not enough to cover the other driver’s needs? If the other driver’s injuries are severe, he may require benefits beyond the $250,000 your policy covers. In this case, he could sue you, which means your personal assets would be at stake. This could be a small amount, but imagine if that injured driver were a surgeon or another high paying professional. What if the accident you caused resulted in an injury that kept him from doing his job for six months? Suddenly, he is suing you for one million to cover the six months he is away from work. Your automobile policy covers the initial $250,000, but where would you come up with the remaining $750,000? A personal umbrella policy can cover the additional costs when your insurance is not enough. The personal umbrella policy could provide the additional coverage you need so that you do not get stuck trying to pay the remaining balance yourself. This extra policy could protect your bank account, home, and other personal property.

Contact us With Any Questions

If you ever have any questions about your insurance coverage or different plans that are out there, make sure to contact us. We can advise you on what the different insurance plans and policies are. We can also recommend what insurance you should invest in. This way you can be covered for any accident or natural disaster that might strike. You have several options to choose from for auto insurance, home owner’s insurance, and health insurance. By having the right coverage, you can plan for any situation.

Why You Need Insurance

Protecting your home investment is important. But do you know what type of insurance you might need? Make sure to contact us and we can advise you on the different types of insurance and what we would recommend. The financial safeguard against disaster, including property loss and injuries to third parties, is homeowners insurance.

Why a Standard Homeowners Insurance Policy Covers

This helps to pay for structural damage to the home. This will help to pay for the repair or rebuild the home if damaged by any of the disasters listed in the policy. It will not include flood damage unless it is purchased separately. Do not base rebuilding costs on the price you paid for the home, nor include the price of the land when estimating coverage. You will need an insurance amount sufficient to rebuild at the going rate of construction in your area. This amount can be estimated by multiplying the home’s total square footage by the square foot cost of local construction. These numbers can be gathered from building associations, realtors and insurance agents. The loss of personal items can also be covered with an insurance policy. This includes up to seventy percent compensation for furniture, clothes and keepsakes that have been stolen or lost due to disaster. Keep an inventory of possessions and store it safely off-premises. Financial protection against third party bodily injury or property damage you might cause is another reason to get home insurance. Court costs and damage awards are usually covered up to the policy limit. This coverage typically begins at about $100,000, but most experts recommend carrying at least three times that amount. Check into umbrella policies. These provide broader liability coverage and higher compensation limits. This coverage picks up your hotel bills, restaurant tabs, and other miscellaneous expenses should you be forced to live elsewhere while your home is rebuilt or repaired. Prior to purchasing a policy, take time to ask about time frames and the specific limits of what is and is not covered. Homeowner’s insurance policy costs are determined by many factors, such as square footage of the house, neighborhood crime rate, and how prone your neighborhood is to natural disasters. The level of coverage also makes an impact.

No matter what you are looking at for insurance for your home, make sure to contact us. We can help advise and recommend the best policy for you and your family.

Homeowners Insurance to Invest In

Having insurance for yourself and your home is important. Insurance is something most people do not even want to think about until they need it the most. Understanding what is and is not covered in your homeowners insurance policy can mean the difference of being able to rebuild your home and replace your personal belongings. Homeowners need to do annual insurance policy check ups to make sure they keep up with local building costs, home remodeling, and inventories of their personal belongings. Typically, homeowners insurance policy covers damage resulting from fire, windstorm, hail, water damage (excluding flooding), as well as other causes of loss, such as theft and the extra cost of living elsewhere which the structure is being repaired or rebuilt. The policy also covers your legal liability if you, members of your family, or even your pets hurt other people or their property. The liability coverage in your standard homeowners policy pays both for the cost of defending you and for any damages a court rules you must pay. Unlike the other types of coverage in your policy, liability insurance does not have a deductible that you must pay for out-of-pocket before your insurance company begins paying losses.

Most standard homeowners policies provide a basic limit of liability of $300,000 for property damages or injuries, but this amount can be increased for additional premium. There is also medical payments coverage under most policies, which would reimburse you for basic medical bills incurred under a liability claim. If you have any questions about what policy is best for you and your family, make sure to contact us and we can set up an appointment. This can help to ensure that you have the coverage you need for your home.

Umbrella policies are important because they can also help to protect you. This is coverage used as a safety net or extra liability insurance that starts paying losses after you have reached the limits of your basic policy. Umbrella is sold as a separate coverage. The cost of umbrella coverage depends on how much liability coverage you carry on your basic homeowners policy, often referred to as underlying coverage. The kind of risk you represent will also be weighed into the cost of the policy. Generally speaking, you can purchase an umbrella policy for a little extra each year as a premium. If you have any questions about your current coverage or any other policy, make sure to schedule an appointment so we can answer all the questions you might have.