Unfortunately for one of our Personal Lines Account Managers, Mike Downing, he probably doesn’t have a large enough umbrella to handle the spring showers that we’re getting, but that’s not the type of umbrella that I’m going to talk about with you today! I want to talk about a personal umbrella policy for liability protection.
A personal umbrella provides excess liability coverage over and above the underlying limits provided on your auto and home insurance. For example, if I have $500,000 of liability on my auto policy and I have a $1,000,000 umbrella policy over and above those limits then I hold $1.5 Million in liability for myself and the insureds on my policy.
Now, you may ask, why would I need to carry an umbrella…I’m not a millionaire!? Well, neither am I, but I can be sued like I am one. An umbrella policy is what protects you from your everyday liability risks. Because of how many exposures we have in our everyday lives we want to make sure that we’re protecting ourselves from that big accident!
For a reference, here’s a list of some of the exposures to consider:
- A pet, especially a dog!
- Swimming Pool or a trampoline in your yard
- A gun or a gun collection
- A boat, snowmobile, ATV, or other toys
- Neighborhood party with alcohol being served
- An auto
- A deck on your house
- Internet or cell phones that cause libel or slander exposures
- Not putting a fire out at a camp site
- And, many more!
As you can see there are many different exposures that you can have that could end up resulting in a liability claim. That’s why you want to protect yourself with an umbrella policy. Umbrella policies range from $1,000,000 to $5,000,000+ in additional liability coverage. These different liability choices range based off of conversations you have with your Insurance Advisor and your Financial Advisor to make sure that you’re being protected correctly to cover your assets. For a reference, a $1 million umbrella policy will range from about $150-$250 a year depending upon your exposures.
Here at Eagle Point Insurance Group, Inc. we are proud to say that we are firm believers in an umbrella policy. We want to make sure you’re protected in the case of a catastrophe claim that may come your way. Go out and enjoy your life, but make sure that you have the umbrella protection to cover you first!
Sources: Written by Account Manger, Alexandra Privette; Photo by Account Manager, Alexandra Privette