Don't Forget Your Umbrella!

Rainy season is in full force and a great reminder not to forget your umbrella! Weather aside, an umbrella can do far more than just keep you dry. One of the most certain things in life is uncertainty. Your dog could bite your neighbor’s kid. A friend could slip and fall on your pool deck. A rainy morning drive could cause a serious accident. Any of these events could leave you liable to others for the cost of injuries, property damage, lost wages, pain and suffering and much more.

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While you may have homeowner, auto, boat and motorcycle insurance, these policies are limited. The liability limit on a homeowner policy is oftentimes $300,000. Auto policies typically range from $30,000 to $500,000. What happens in the event of a lawsuit in which you are judged liable for $1 million? How do you pay for it?

If you have a Personal Umbrella policy and the incident is a covered loss, the difference between your basic policies and the judgment will come from this policy. If not, it will come from the assets you have now, as well as possibly from future assets such as wages or inheritance.

Here are a few things to be aware of when considering an umbrella:

  • The typical coverage is between one and five million. The coverage amount you select should be based on your net worth.
  • Since the homeowners, automobile, boat and motorcycle policies are the 1st line of defense, the umbrella carrier will require you have certain underlying coverage on these policies before they will respond. 
  • An umbrella policy responds when the underlying coverage limits are exhausted.  

An umbrella policy is simply an extra layer of security coverage on top of the limits on your other policies. Whether you own property, have significant assets or own things that can lead to injury lawsuits, just about anyone can benefit from this policy.

If you are interested in learning about how an umbrella policy could help protect the life you’ve built, please give us a call at 844-848-9373!


About the Author

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Kristie Pauly is the Vice President of Personal Lines at Bouchard Insurance. Kristie's team focuses on protecting individual's assets through all lines of personal insurance. | Connect on LinkedIn