Umbrella Liability Policy
An umbrella policy can help protect what matters most by adding additional coverage on top of your auto, home or renter’s, or farm insurance policies.
Why should I get an Umbrella Policy?
Although your standard auto, home or renter’s, and farm insurance policies provide basic coverage for certain events, you may need protection for events that aren’t covered by these policies, or for liabilities that end up being higher than your coverage limits.
In these cases, you could still be responsible for paying the damages above the limits of your insurance policy – which could put your assets in jeopardy.
What Are Some Scenarios When I might Need an Umbrella Policy?
The following examples demonstrate times when you would need the additional protection of an umbrella policy.
- You are responsible for a car accident that takes someone’s life or causes serious injury.
- You have a car accident with multiple people with serious injuries, and the medical bills are astronomical.
- You have a pool and a visitor hurts themselves.
- You are a chaperone on a field trip and one of the students hurts themselves.
- You’re a farmer driving heavy equipment down the highway and you cause an accident.
How Does an Umbrella Policy Work?
It’s simple – an umbrella policy sits on top of your existing coverage and adds extra protection.
In the example shown, you get sued and settle with the claimant for $1 million. You pay a $1,000 deductible for the basic policy (auto and homeowner’s). That policy pays $299,000, but your umbrella policy kicks in because the $300,000 deductible has been met. It pays $700,000, and you pay nothing.
See the power of an umbrella policy? In today’s litigious world, it’s always good to have extra peace of mind.
How Much Does Umbrella Insurance Cost?
Umbrella insurance is usually inexpensive compared to the coverage it provides. To add it to a typical auto or homeowner’s policy, you may pay a few hundred dollars a year. For a farm policy, you may pay $400-$500 per year.
There are also different types of policies. Some simply provide additional liability coverage, while others also cover more types of events than a standard policy. Talk to your insurance representative to determine the right type for you.
Block Insurance and Umbrella Policies
At Block Insurance, we treat every customer as an individual with unique needs. When you request an umbrella policy, we’ll sit down together to determine the coverage you should have. We’ll always add the coverage you need for peace of mind, but we’ll never sell you something you would never use.
Contact us today for a quote on an umbrella policy that’s right for you.