Personal umbrella insurance is the bridge that covers what your personal insurance does not. It adds an additional layer of protection and can prevent you from losing your assets in the event of a claim.
Many people today are purchasing more things requiring insurance, everything from owning multiple cars and boats, quad bikes, hosting events, owning pets, vacation property, or frequent travel for work.
Or, they may participate in more activities, such as sports or volunteer work with a school or in other capacities in their community. Regardless, with more ownership and increasing activities comes more risk.
As with anything, there are people at a higher risk of such lawsuits. Still, it is always a good idea to take stock of what you own and any potential risks that may be involved in owning and operating them.
Why You Should Get Umbrella Insurance
What happens when your teenager learns to drive and accidentally hits the gas pedal instead of the brake at an intersection?
Or, what if your dog gets loose and runs out of the yard towards the neighbours’ children playing over in theirs?
Car accidents happen all too frequently, which is why you should have insurance. However, base limits are low compared to the potential costs following a claim.
Pet insurance also only covers certain medical bills for your pets’ health. However, what about the claims that arise following an animal attack, should your pet do the unthinkable?
Home insurance covers a lot of things, mainly due to loss or natural disasters. So, what covers you should someone have an accident or suffer an injury when using your swimming pool?
Or, perhaps, you have a hot tub party, and someone gets burned or suffers a medical issue due to the temperature of the water.
These are all things that your current policy may not cover or cover in full. Umbrella insurance fills in the gap after your base policy has been used up. Any coverage you have won’t always cover the full costs of any claim, so we should always be prepared for the worst.
With a standard limit of $1,000,000, this policy will take care of the rest of the claim and prevent a drain on your finances.
Umbrella insurance covers things that traditional policies don’t, such as malicious prosecution, wrongful entry, invasion of privacy either in person or online, and so much more.
The policy covers other family members or members of the household in shared accommodation settings involved in the claim. It also covers you when travelling to the United States or anywhere else in the world, thus adding extra coverage to travel insurance and providing peace of mind.
It is worth being aware that although the policy will cover injury sustained to other people and damage to another’s property, it does not cover any such damage belonging to the policyholder.
It will also not cover any intentional criminal behaviour, or damage caused while conducting business or protect against injury from certain breeds of dogs or even certain types of vehicles.
How Umbrella Insurance Works
This policy covers the rest of the claim after your base policy has been used.
Let’s say that there was a car accident. The other driver and passengers are seriously hurt, and, as a result, they sue you for lost wages and medical bills.
The total cost of the claim comes to $2,000,000.
Now, your current auto policy covers $1,000,000; that is, half of the claim.
Normally, the other half would come out of your own pocket. For many people, this is impossible and can result in you having to sell your home and other assets.
If you have umbrella insurance, however, this policy would now come into effect and cover the other $1,000,000.
This means that there are no out-of-pocket expenses. You don’t have to sell your home or other assets, take out bank loans or find other means of covering the remainder. Your claim is covered in full.
Do an audit of your assets. Should the total value come to more than $500,000, then it is worth considering getting umbrella insurance.
When to Get Umbrella Insurance
Some companies sell stand-alone policies. However, as it is designed to provide extra coverage to other policies already in place, insurance companies will require you to purchase the base policy first.
Once your standard policy is in place, you can purchase the umbrella coverage at any time. Still, it is better to do so sooner rather than later.
This is especially important if you partake in activities such as coaching a kids’ sports team, owning recreational property or equipment, or hosting regular events.
If you own expensive assets, this coverage will ensure they are protected. Remember that the coverage doesn’t extend to you personally or your property; it can prevent the need to sell these items to pay for any expenses that your base policy doesn’t cover.
We Can Get You Covered
Talk to the experts at Marathon Insurance today about making sure you have the right coverage for your lifestyle and family.
Adding only about $150 to $300 per year to your current premium, this policy is affordable and provides security and peace of mind in the event of a claim.
Call us at 844-429-0837 to speak to a member of the team, and get your free quote today. Or, contact us online here.