What is the first thing you think of when you hear the word umbrella coverage?Rain? Protection from water?
What does it cover?
Most people think in a literal term when they hear the word. However, when referring to umbrella in insurance terms we are talking secondary coverage that protects more than one property or assets with an extra layer of liability protection. The coverage kicks in when your underlying or primary policy doesn’t provide sufficient liability protection. For example, if the liability limits are exhausted on your auto insurance, your umbrella insurance would take over and provide you with additional protection up to the level of coverage you purchased. All of your automobiles, properties, and recreational vehicles would be covered under your umbrella policy.
Why do you need it?
Imagine if your dog were to bite your neighbor’s child. Or if there’s an accident on your rental property. Or a fire in your condo spreads to other units. What would happen if you or a family member missed a stop sign and stuck and killed a pedestrian? If any of these things happened to you, there’s a good chance your current liability limits wouldn’t be adequate to protect your assets–or your future earnings.
Also, if you are ever sued, a standard homeowners or auto policy will provide your with some liability coverage, paying for judgements against you and your attorney’s fees, up to policy limits. However, in California we have a litigious society, so you may want that extra layer of liability to protect all your assets.
Umbrella insurance is not just for the rich and famous. Whether it is a serious auto accident involving pricey medical bills or an incident on your property, you can quickly find yourself responsible for damages that exceed the limits on your auto, homeowners or boat policies. That is the main reason for purchasing umbrella coverage. To protect your assets.
Don’t get yourself caught in a jam. It is always better to be safe than sorry!
Call us today for questions regarding umbrella insurance or to get a quote.
Check out our most recent ad on page 47 regarding this coverage in the 92009 magazine: