When & Why Should You Consider an Umbrella Policy

Let’s say you have a policy for your home and your family’s cars. You have just the right policy for the apartment you rent out to others as well as coverage for your boating excursions. Your homeowner’s policy even has a special, added protection for the business that your spouse runs out of your home. While it looks like you have all the coverage you need; but perhaps you should consider….. an umbrella.

Umbrellas are designed to be carried over a person’s primary (also known as underlying) liability coverage. Primary refers to the fact that in the event of a loss, the liability portion of your auto or homeowner coverage is the first to respond. Umbrellas or excess liability policies respond to an eligible loss only after the primary insurance has paid its limit. It’s quite possible that your primary insurance limits provide more coverage than you’ll ever need. However, circumstances could involve a type of loss that is not completely covered by a primary policy and you don’t want to be responsible for large, out of pocket expenses.

Umbrellas generally provide additional liability coverage for the following underlying policies:

• Personal Automobile
• Homeowners/Farmowners
• Recreational Vehicles
• Watercraft
• Personal Liability

The best way to find out if extra coverage is necessary is to discuss your coverage needs with a professional insurance agent. John & Rick sat down to break things down simply! Check it out!