When it rains, it pours. And, you may need additional coverage that standard
policies don’t offer. Commonly, these additional coverages are called umbrella
policies. Many people don’t realize that they may need it—so here are some
reasons you might consider purchasing additional coverage:
• If the total value of your assets— including the money in your bank,
investment and retirement accounts; and your home equity—exceeds the
limits of your homeowners, renters, or auto policies, an umbrella policy helps
cover the remainder—or more—of that value.
• If you are exposed to higher risks, an umbrella policy can assist in covering
claims associated with those risks. Higher risks include renting out
your property to others; employing people to work at your home (e.g.,
a housekeeper, a nanny); owning potentially dangerous commodities
such as a pool or a trampoline; and even being someone who’s well-known
• If you are at risk of being sued, an umbrella policy provides additional
limits—and in some instances, broader coverage—in the event of a lawsuit.
That way, your assets could be protected if a judgment goes against you. Hint:
Everyone is at risk of being sued.
• If your teenager started driving recently, an umbrella over your auto policy could
cover extensive damages that exceed the limit on your auto policy if he or she
causes an accident.
• If you rent a car when traveling outside of the U.S., (excluding Canada and
Puerto Rico), your personal auto policy may not cover you if you are involved
in an accident. An umbrella on your auto policy could provide the additional
coverage you would need if this happens. Check with us before you rent
What umbrellas don’t cover.
Umbrellas don’t cover everything that your standard policies won’t.
Remember: Umbrella policies cover liability for injury to other
people or for damage to other people’s property, not your own injuries or damage
to your own property. Additionally, it won’t cover damage caused intentionally.
Some other things umbrellas may not cover include liability for business-related
claims—you would need a commercial general liability policy for that—and
liability for violation of a written or oral contract.
If you think you need umbrella coverage—or if you need help deciding if
you do—give our office a call today. We look forward to hearing from you.