Tuesday, December 10, 2013

Do I Need An Umbrella Policy?

Do I Need An Umbrella Policy? Liability protection on a policy is intended to pay for bodily injury and property damage of others. Let's talk about a few examples:

If you are in an at fault motor vehicle accident and hurt or kill four people in the other vehicle, you have liability protection on your policy. A lot of people try to go with the cheapest auto insurance possible.  Thinking 'this will never happen to me'. It is called an accident for a reason.  Maybe due to road conditions you lost control of your vehicle and crash into another vehicle.  This is considered an at fault accident.  If you had NYS minimum liability limits this is not going to be enough to pay for the damage to the other vehicle, medical bills and or their lives.  This is why you need a personal umbrella.

If you are business owner and you own a corporation or LLC you most likely did that so that your personal assets would be protected in the event of a liability lawsuit with regard to your business.  What you probably don't realize is that if the scenario above happens to you and your personal liability is not enough your business assets could be in jeopardy.  This is why you need a personal umbrella.  You should have a commercial umbrella as well.

If you own rental property, and your tenants or their guest slip and fall down your exterior stairs for example, you can be sued.  This is why you need a personal umbrella.

If you have a policy with liability coverage and someone is hurt on your property for example, and you are sued, your insurance company will protect and defend you in a court of law and pay any claims up to the amount on the particular policy.   Liability coverage on a homeowner policy is the least expensive coverage on that policy.  Most policies include $100,000 automatically.  We recommend $500,000 minimum for our clients and this increase is usually less than $20* a year!! (approximately - price varies by company but not by much).  It is considered personal liability, it follows you, it doesn't just apply if someone is hurt on your property.  

Personal umbrella policies are usually very inexpensive and will provide just that an extra layer of protection over your auto, home, boat, motorcycle, ATV, snowmobile and your rental property.  

If you own a commercial building, a commercial auto policy, or an apartment building with more than 4 units you need a commercial umbrella policy.

Umbrella policies provide massive protection for pennies a day!

We do offer more detailed information on our website about personal and commercial umbrellas.  Free insurance reviews and free quotes.

Feel free to contact me or one of our three locations if you have questions or need more information.


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