Umbrella policy is a funny sounding term for an insurance policy, but this type of insurance serves a very serious function: it offers significant additional protection from liability. We live in a very expensive and litigious society, and unexpected accidents can prove to be quite costly. Adding additional insurance can help protect your assets in these types of situations.
What Is an Umbrella Policy?
An umbrella policy provides additional liability coverage beyond the limits of other policies, such as auto insurance or homeowners. It offers protection against significant liability claims and lawsuits and covers expenses like legal fees and damages up to the policy limit.
Why would you need umbrella insurance? Because it safeguards both you and your assets in two important ways:
First, it may provide coverage protection when the coverage limits of another policy - like a homeowners, auto, or renters insurance policy - are exhausted. Additionally, an umbrella policy can provide coverage for claims that are excluded by other policies. These may include things like libel and slander.
Imagine an umbrella policy like an actual umbrella, extending protection over and above. Your auto insurance policy may provide what you need for a typical expected problem like a normal auto collision where damage is sustained to your vehicle. Some car accidents, very unfortunately, are more catastrophic, involving injuries or additional damage to property. A regular auto insurance policy is unlikely to cover you from personal liability or certain types of lawsuits if you are at fault, for example. It’s also unlikely to pay for damage to a building (or a pedestrian) you hit with your vehicle when you are deemed at fault.
Other examples of incidents that may not be covered under traditional homeowners insurance policies might include your dog biting and injuring someone or a neighbor falling and hurting themselves on your property. An umbrella policy can cover the costs of medical bills or liability claims against you or a family member.
Landlords can also benefit from umbrella insurance. If you own your rental property personally, and not under an LLC, and you’ve ever worried that someone may slip on the ice in front of your building and sue you, it would be smart to add an umbrella policy to your insurance portfolio.
Umbrella policies typically do not provide coverage for injury to your person, damage to your property, or damage you caused intentionally or while in commission of a crime. They also don't cover contractual liability that you voluntarily assume.
How Does Umbrella Insurance Protect You?
It offers the additional coverage you may not anticipate needing and protects you and your assets. For instance, if you are in a car accident that you are deemed at fault for and you injure other people, the umbrella policy would cover costs beyond what your auto insurance covers. If your auto policy covers $500,000 for bodily injuries, but the actual costs are $700,000, that’s $200,000 you would have to pay for personally without an umbrella policy.
You may not think you need more insurance, but if you have a new driver on your insurance? It’s a great idea to add that extra coverage. Umbrella policies are affordable. The cost depends, of course, on how much coverage you purchase, but typically it’s not that expensive and you can receive discounts if you purchase it with other coverage like auto or homeowners insurance.
Call Navisure Insurance Group today at (616) 600-8288 for more information or a quote on an umbrella policy. We will be happy to get you a policy that fits your unique needs, and the cost may be less than you think for that additional peace of mind.
COREY VANDERMEER | PRESIDENT
Corey started his insurance career in the claims department for a national carrier and learned the basics of insurance coverage and how it’s applied. From there he decided to take the jump into sales and joined an independent insurance agency. Here he learned how to build coverage around the needs of each individual and cater to every client. When Corey decided to start an insurance agency he did so with the intention of simplifying the process of getting insured. With a focus on technology and simplicity; his goal was to create an insurance agency that was different from those currently dominating the market place.
When he’s not working, Corey enjoys golfing, fly fishing and spending time with his wife and kids. Together they enjoy traveling to Northern Michigan and to his wife’s hometown of San Francisco.