Written by What Is Umbrella Insurance?
Umbrella policies were designed to give extra personal liability coverage to policyholders when their home, auto or other types of insurance did not carry enough protection. Umbrella insurance will become “active” when typical liability coverage has reached its stated limit.
Do I Need Umbrella Insurance?
Everyone should have umbrella insurance. Extra personal liability coverage is always a smart move. If you were to be involved in a car accident and the damages/personal injury has exceeded your coverage – you’re left owing the balance. This is similar to gap insurance in the respect that what an insurance company will pay out and what is actually owed can be miles apart.
Where Can I Get Umbrella Insurance?
A lot of insurance companies offer umbrella insurance, ask your local insurance agent, contact your current company or get a free quote online.
What Do I Need To Purchase Umbrella Insurance?
Well, you’ll need to answer a few questions. Here’s a small sample of what you’ll need to declare to an insurance agent to apply for umbrella insurance.
- Perosnal Risk: Do you have other motor vehicles like motorcycles, ATV’s, farming equipment that you operate? Do you own or operate an airplane or helicopter?
- Business Activities: Do you run a business from home? Do you have employees that work there? Do you use any of your operable vehicles for business use?
- History: Have you been denied insurance in the last 5 years? Do you have any reduced liability limits on your current policies?
These might sound like an odd set of questions, but they help to assess your liability and although it’s an added expense an umbrella policy can give you the peace of mind you need to know you’re covered.
