WHAT IS A PERSONAL UMBRELLA POLICY & DO I NEED ONE?
Simply put, an Umbrella policy is a policy which provides additional liability insurance coverage above all of your other insurance policies.
HOW DOES AN UMBRELLA POLICY WORK?
Here are some examples of incidents that an Umbrella policy could cover if your homeowner’s insurance or your auto insurance wasn’t enough:
- Your dog runs out of the house and viciously attacks a neighbor who was going for a walk. Your neighbor sues you to cover the cost of her medical bills, lost wages & pain/suffering.
- Your child gets into a fight at school and punches another student, breaking their nose. The student’s parents sue you.
- You cause a 10-car accident and your auto insurance property damage coverage isn’t high enough to replace all 10 accident victim’s vehicles. Nor is your personal liability coverage high enough to pay for their medical bills.
- You send sandwiches to your child’s school for a field trip @ several students develop food poisoning and their parents sue you.
- Your child throws a party at your house while you’re gone. Someone brings alcohol to the party and one of the guests is arrested for driving under the influence on the way home. You can be sued.
As you see from these examples, the Umbrella policy would cover not just the policyholder, but also other members of the household.
Some people are more likely to need an Umbrella policy than others. If you engage in some activity that puts you at a greater risk of incurring excess liability, you’re an even better candidate for an Umbrella policy. Personal liability risk factors can include owning property & renting it out, employing household staff, having a trampoline, pool or hot tub, hosting large parties and being a well-known public figure.
Basically, the more likely you are to be sued, the more strongly you should consider purchasing Umbrella insurance, but anyone can be at risk. Wouldn’t you sleep better at night knowing you’re protected by an Umbrella policy!
We service all of Southwest Michigan areas such as Benton Harbor, St. Joseph, Coloma, Watervliet, New Buffalo, Baroda, Bridgman, Stevensville, Berrien Springs, Hagar Shore etc. Wherever you are, call our office!