Umbrella Policy: Inexpensive and Helpful

As insurance experts, we often find ourselves answering a myriad of questions from our clients. Lately, a lot of those inquiries have revolved around umbrella policies. While we have addressed this topic before, the continued interest in it merits another focus on this valuable, yet often overlooked, insurance option.

What is an Umbrella Policy:

An umbrella policy can be viewed as an extra security blanket in your world of insurances. This form of insurance provides additional liability coverage over-and-above the limits you already have in place for your home, auto, and other insurance policies. The term "umbrella" is used because it covers broader aspects of your liability - just like how an umbrella covers you more completely than just your head.

Why Consider an Umbrella Policy?

The core benefit of an umbrella policy is its ability to extend your liability protection. In a lawsuit-heavy world, where settlements frequently exceed standard liability limits, having that extra coverage can safeguard your financial future.

For example, if you were sued for a million dollars for a car accident, and your auto insurance only covers $500,000 in liability, you'd have to shoulder the remaining amount. However, an umbrella policy could cover the difference, protecting you from serious financial stress. While this situation may feel unlikely, the low cost of an umbrella policy can be worth not “risking it.”

Talking Price and Perks:

One of the great selling points of umbrella policies is their affordability. For the substantial coverage that it provides, the yearly premium on an umbrella policy is often surprisingly low. Just imagine, for a small fee annually, you can enjoy millions in liability coverage.

Moreover, an umbrella policy can also lead to discounts on your other insurance policies. For example, having an umbrella insurance might qualify you for discounts on your home or auto insurance, making it an even more cost-effective wrap-around coverage.

And remember, when it comes to insurance coverage, we're here to keep you covered—whether that's with an umbrella or any other policy. If you have any questions about umbrella insurance or if you're interested in getting a quote, don't hesitate to contact us.