Personal umbrella insurance works the same way as commercial umbrella policies. This policy will protect your auto, boat, motorcycle, or homeowners policies. We buy insurance to protect ourselves if we have an accident. If your policy doesn't offer sufficient coverage, you could still be forced to pay a portion of the damages out of your own pocket. The extra coverage a personal umbrella policy provides would take care of the rest.
Umbrella insurance can protect everyone. Your liability risk will increase if you have a swimming pool, trampoline, or dog. The same is true if you host parties or large gatherings at your home. The more your risk increases, the greater your need for a personal umbrella policy. Any activity you participate in that involves substantial risk will increase your risk of liability.
An excellent example of how an umbrella policy works is if your dog bites your neighbor and they file a lawsuit against you. If they win and are awarded damages totaling $400,000, your homeowners policy will cover the damages up to its coverage limit. If your policy limit is $250,000, you will be responsible for paying the other $150,000 out of your pocket. If you have a personal umbrella policy, it will pick up where your original policy leaves off.
Umbrella insurance will vary in price depending on multiple factors. The amount of coverage you need will be a big factor, as well as your level of risk. You can buy most umbrella policies worth $1 million in coverage for $300 a year or less. It's well worth the extra money for the peace of mind you get in return.
Umbrella insurance is excellent, but it has exclusions you need to be aware of. If the damage is caused by a breach of contract, criminal behavior, or intentional property damage, your umbrella policy may not cover you. Umbrella policies will not cover injuries you or your family members receive on your own property.
Although standalone umbrella policies are available, one of the main eligibility requirements for most umbrella policies is that you already have a basic policy. You can add an umbrella policy to it and increase the amount of liability coverage it offers. With the extra coverage, you get financial security and peace of mind.
Personal umbrella policies are an effective form of financial security. Contact the agents at CF&P Insurance Brokers to learn more about all the benefits an umbrella policy offers. We can answer all of your questions and make sure you have the information you need to make an informed decision. We will help you determine how much coverage you need to get peace of mind.