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If you have completed an account review with one of our customer service agents, you have probably heard us ask you about umbrella policies. If this is the first time you’re hearing the term, allow me to explain. An umbrella policy is one that provides additional coverage above and beyond your auto and home liability coverage’s. Oh I’m sorry, that was all mumbo jumbo?! Of course it was! How about some of these examples of times an umbrella policy would come into play.

Donating $10 to local charity for every policy we quote!

We usually ask our clients, if they were involved in a terrible accident and people were suing them, how large of a lawsuit they would want covered. This catches some off guard or we will get the response: “I don’t have that much so they wouldn’t get a lot.” Unfortunately, judgement aren’t only based on what you have in this sue crazy society we have become. Some people don’t settle for the limits of an insurance policy.

As we all know, accidents happen. Sometimes, we have no control over them and others were do to maybe a little negligence. What if you were in an unfamiliar area and accidentally ran a stop sign and collide with another vehicle. Depending on the speed, their airbags could deploy, or God forbid, someone could be killed. You carry $100 thousand in liability coverage. Would you think that the family of the other vehicles family would settle for $100 thousand for their loss? Or would $100 thousand cover several surgeries if a passenger was terribly injured? An umbrella policy could help in this situation.

What about at home? An unfortunate example was given to us from one of our carriers. A woman with two dogs had her friend and her friend’s daughter over to the home, as she had many times before, for a visit. During that time, the daughter fell into one of the dog’s beds and the dog bit her face causing some significant damage, which then needed several surgeries. The homeowner’s policy paid to the liability limits of $300 thousand but that was not enough to cover the cost of her recovery. The homeowner was still liable and lost most of her personal assets and now is in severe debt. An umbrella policy could help here as well.

The beautiful thing about the umbrella policy is the price versus the coverage. An umbrella policy starts at $1 million in coverage for, sometimes, less than $250. That is likely less than visiting with an attorney for an hour to find out that somebody has submitted a claim against you. If we’ve ever peaked your interest about the umbrella policies, just give us a call to quote one for you!