Auto Insurance
Home Insurance
Condos Insurance
Hi, this is Kevin Hayslett and the question is what is an umbrella insurance policy and is it right for me? First of all we need to understand what is an umbrella insurance policy. What that does is just what it sais it is an umbrella, which means it protects your assets against law suits for injury you may cause another person as a result of your negligence. Typically the umbrella takes over where your other insurance leaves off. For example if you have a 100-300 B.A., bodily injury limits of you automobile policy your umbrella will take over after you 100 is over. So, if you get involved in an accident and you have a judgment against you for $ 800,000.00, your primary automobile insurance will cover y the first $ 100,000.00 if you have a million dollar umbrella it would start covering you anything over $ 100,000.00 up to the limits of the policy, in this case one million dollars. So you would have a million dollars worth of coverage, $ 100,000.00 from your primary insurance company and another $ 900,000.00 on top of that from your umbrella policy.
Most people say: well, I can’t afford an umbrella policy. You would be surprised. In most states in the country you can purchase an additional million dollar umbrella for less than $ 400.00 per year. But what does that cover you for? Generally it will cover you for any injury or any damage you cause another person trough your negligence. Sometimes your umbrella will cover additional auto damage you may cause or auto injury you may cause. Additionally it may cover your property for example if someone is injured on your property trough your negligence it will take over were homeowners leave off. So when evaluating your assets and your decisions for insurance needs talk to your agent about an umbrella policy. It may be more affordable than you think.
Carlson Meissner Hart and Hayslett serving the community since 1971.
Related Links:
It got its name for a reason. Umbrella insurance is a type of policy that is designed to make sure you are completely covered. Let us create a bit of imagery so that you can better understand this type of coverage.
Think about your umbrella and think about a rain cap. When you wear a rain cap and a raincoat and you are out in a storm, water can still get to you. Whether it is wind driven and hits you in the face or it finds the little seams that allow it to get to you, you are certain to get a little wet in a bad storm. Now, consider this. If you are wearing that same rain gear and you are carrying an umbrella, you will be virtually totally protected. The combination of the gear and the umbrella will keep you safe and dry.
Now, you can use that image to understand umbrella insurance a little better. This policy is like the umbrella you carry even when you wear rain gear to make sure you do not feel a drop of water. However, there is much more to this type of coverage. In order to understand it better, you need to make sure you have your questions answered. Below, you will find the answers to your top four questions about umbrella insurance.
1. What is umbrella insurance? As described above, this is a type of extender to your standard insurance policies. This way, if your standard policies fall short, the umbrella coverage will pick up the slack. These policies could also be considered as a type of gap coverage so that you can make sure you do not find yourself in a financial disaster if your regular insurance does not cover enough.
With this type of policy, you do not have to fear of falling short, especially in liability issues. Many people choose liability umbrella coverage since there is such a chance for a high cost. Anytime something happens that you are liable for, you could be facing the cost of repairs or medical bills. In extreme cases, you could even face lawsuits. In order to make sure you are thoroughly covered, umbrella policies could be helpful if not necessary.
2. What are the benefits of this type of coverage? Ask yourself this: do you have several thousands of dollars in the bank that you could readily use to cover claims? There are many different loopholes and exclusions in any type of insurance policy you may hold. Just because you pay for insurance does not mean it will pay out in every situation.
The benefit of umbrella policies are quite simple. When your standard insurance does not pay enough to cover the costs, this type will pay the extra. Alternatively, if your claim falls within a loophole and is not covered by your regular policy, you can turn to the umbrella coverage.
3. How much of this insurance will I need to purchase? This will be specific to your circumstances. You will need to factor in what your standard insurance will cover along with the highest amount you could expect to need. With the help of your insurance agent, you will be able to combine this information to determine your personal coverage needs.
As a general rule, umbrella insurance is available from two million to five million dollars, but this can vary depending on your own policy and the insurer.
4. Can I afford this extra coverage? The better question would be whether or not you can afford to not have the policy. If you think there is any chance that you may need to call on the insurance, then you definitely need it. While it will bring along a higher premium that you will have to pay, that premium could pale in comparison to a claim if you have to make one.
Budgeting an umbrella policy before you ever need it could save you thousands of dollars in the long run.
Just remember that this type of coverage is like an extender for your regular insurance. Just as how an umbrella can make sure you do not get rain in your eyes, an umbrella policy can keep you from severe financial strain.
Related Links:
Umbrella insurance coverage is often overlooked, but it can provide you with substantial savings and protection against litigation. Although it is generally bought as a stand alone policy rather than endorsed onto another policy, it is designed to work with your existing insurance. Umbrella insurance offers you liability insurance above and beyond the limits that exist on your regular home, auto, commercial, or recreational vehicle policies.
Umbrella insurance is broadly available. You can find it offered by mainline insurance carriers as well as by specialty insurance providers. Some types of Umbrella insurance are specific to certain professions, while others are regionally bound, but a number of choices are available in nearly every category.
The main benefit of Umbrella insurance lies in its cost benefit proposition. Premiums on Umbrella insurance are relatively low, though the coverage limits against litigation are often very high. This is made possible through the risk profile that backs more Umbrella insurance policies—few people really are involved in litigation, though the individual costs can be high.
Information Needed For An Umbrella Insurance Quote
Getting good Umbrella insurance coverage involves a somewhat length insurance quotation process. You may feel that the insurance agent is asking a lot of questions about you and your possessions. However, remember that Umbrella insurance is designed to protect you against all possible liability claims against your person or your property. As such, it is important to be sure that everything is listed on the policy to ensure seamless insurance coverage.
For individuals listed on the policy, you will need to provide the quoting agent with their name, age, date of birth, occupation, and marital status. Your Umbrella policy can include your whole family as well as dependents. Just be sure to have that information handy to save time.
For vehicles, you will need the make, model, year, and accident history. You will also need the driver’s license information and accident history for all named drivers on the vehicle. This should include recreational vehicles, boats, and commercial vehicles.
For your home, you will need the age, dimensions, and valuation of the property. You will also need to include the claims history on the property. Any special customizations, valuables stored on site, or outbuildings should also be included.
For your farm or personal business, you will need to describe the nature of the business and provide a schedule of business equipment. Locations to be insured, online and offline, should also be itemized.
It will also be necessary to have all your existing insurance policies handy. Since Umbrella insurance is designed to work with your existing coverage, those policies will be needed for reference. From there, you can calculate how much Umbrella coverage you need as supplementation to the policies you already own.
Since it is so detailed, the initial quotation process can take some time. Be prepared to spend some time entering and discussing your data. In this way you can be sure that you get a solid quote for your true risk profile.
Common Umbrella Insurance Policy Features
Umbrella insurance policies have one defining feature, which is their liability coverage. The lower limit on Umbrella policies in generally $1 million, with upper limits rather unlimited. Most individuals opt for coverage between $1 million and $5 million, with business owners and farm managers working with their agents to determine the best upper limit on coverage for their specific industry and region.
Umbrella Insurance Discounts Available
Discounts on Umbrella insurance plans are available. In general, these discounts are tied to multi-line policy discounts. Thus, if you are looking for premium breaks and other discounts, be sure to request Umbrella insurance quotes from your existing insurance carriers first.
Umbrella Insurance Exclusions To Note
Like most other insurance policies, Umbrella insurance plans will not provide you with liability coverage if you were committing a crime at the time the liability was incurred. There may also be certain professional practice exclusion specific to your work, which you should discuss with your insurance agent at the time you bind coverage. Otherwise, Umbrella insurance is a broad coverage program, insuring you against slander, invasion of privacy, false arrest, and many other categories excluded from traditional insurance plans.
Related Links:
 eInsurance.com |
Summary:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Home | About | Contact | Quotes |
