Umbrella policy is a term you probably hear a lot, and maybe you even understand it. If you don’t know what an umbrella policy is, you’re not alone. Today, we are talking with Mark Roland, who is a commercial agent with Foursquare Insurance Agency. He’s going to explain umbrella policies, and when or why you might need one.
Umbrella Policies for Additional Liability
An umbrella policy will provide you with extra protection. It’s something more people ought to think about, especially with the assets that people accumulate. This is another layer of liability coverage over all of your assets, including your auto and home policies. If you have $500,000 in general liability for a home or an auto, an extra million dollars of coverage would sit on top of that existing liability.
Umbrella Policies Provide Peace of Mind
Think about your assets. How much do you have to risk if someone sues you?
There are other things to consider as well. Perhaps you have a teenage driver in the house. With teenagers, the question is not so much if they’re going to have an accident, but when. We are seeing lawsuits more frequently, and they’re getting more expensive. If your teenager is texting and driving and causes an accident, the lawsuits will just continue piling up against you. The umbrella coverage will keep the lawyers and attorneys at a distance, and you won’t have to pay out of pocket. Most cars have low liability limits. But, if there’s a million dollar accident, you get to pick up and pay after the insurance is exhausted. With umbrella coverage, you have the extra protection.
It’s something that investors should consider looking at. If you have any questions about umbrella policies or anything pertaining to insurance on your rental property, please contact us at PMI McCaw.