Most people assume they are adequately insured, as long as they have homeowner’s, auto, health, and life insurance. People and businesses that have significant assets, though, should also have umbrella insurance.

What is Umbrella Insurance?
Simply defined, it’s an insurance policy that provides additional coverage, above and beyond what other insurance policies provide. It is a secondary policy that provides coverage after the limits of other policies have been exhausted. For instance, if you or your business is libel in an auto accident that settles for $1,000,000 (perhaps there were massive injuries or even death), and your auto policy’s limit is $500,000, then an umbrella policy would cover the settlement amount from $500,001 to $1,000,000.

While umbrella insurance is primarily used to provide extra protection for assets, it also offers people and businesses coverage that other policies do not afford, such as:

• false arrest
• slander
• libel
• invasion of privacy

Umbrella insurance provides more protection than standard insurance policies, as well as some other types of coverage. It fills in the gaps that insurance policies may have.

Who Needs Umbrella Insurance?
Any person or business who has significant assets or income should consider this type of coverage. Without it, homes, second homes, college and retirement savings, and inheritances may be lost in a lawsuit. This type of policy provides peace of mind that these assets will not be lost through a tragic accident.

Many people do not think of themselves as rich, but even modest assets should be protected. If you have assets that are greater than the limits on your homeowner’s and auto insurance policies, then umbrella insurance may be a wise decision for you.

What is a Typical Umbrella Insurance Policy Like?
Umbrella insurance, like any insurance, can be purchased at various levels. The lowest level of coverage is typically $1,000,000 of coverage. Additional coverage usually comes in $1,000,000 increments, as well. Obviously, you should purchase as much coverage as is needed to cover either your personal assets or your business’ assets.

Because umbrella insurance covers a wide range of incidents and is a supplemental policy, the rates do not vary as much as other insurance rates, such as auto insurance, do. Customers should talk with an independent insurance agent to see what the best rate possible is, but most policies are similar. If you would like to discuss umbrella insurance policies or learn more, contact us today.

Learn more about Umbrella Insurance HERE!